BM2021

Names Section Date

Requirements:
Based on the case facts/supplementary research, analyze and compare the value chain activities of
Walmart and Target. Adhere to the given outline below.

OUTLINE

I. Value Chain Activities

a. Identify the specific and COMMON value-adding activities between Walmart and Target,
from sourcing of goods/raw materials to delivery and customer service.
Walmart employs a low-cost approach in order to obtain cheap costs from its suppliers.
Walmart's low-cost approach allows them to undertake a variety of things in order to
preserve or grow its market share. In comparison to its higher-cost competition, it may
spend more on marketing and pay for better retail shop locations. Target has a low-cost
approach, but competes in a unique way: they focus on providing customers with
discounted pricing and a low price to increase demand and win market share. Low prices
encourage companies to invest more in research and development, allowing them to
increase their product's performance.

b. Simply fill in the given table. An example is provided below.

Steps in the Value Chain Activities Expected Output of Activities

1. Materials acquisition Purchasing, receiving, Various parts and materials
stocking
2. Sales and Marketing Advertising, pricing and Increased Sales
discounts
3. Services Customer service and low Retained customers
pricing

02 Task Performance 1 *Property of STI

Page 1 of 2
 BM2021
Names Section Date

II. Competitive advantage

a. This part must detail and compare the value proposition and value-adding activities of
Walmart and Target.
 Walmart's value proposition aims to offer customers a wide range of things at a
cheap price and in the most convenient manner feasible. Target's value
proposition is centered on their pricing; they offer everyday staples as well as
attractive, unique items at discounted costs to all of their visitors in order to
achieve their "Expect more. Pay less" promise.
b. A detailed assessment of the firms’ competitive advantage over each other must also be
presented.
 Walmart's supply chain management strategy has given the corporation several
long-term competitive benefits, such as lower product prices, lower inventory
carrying costs, more in-store variety and selection, and extremely competitive
customer pricing.
 Target provides discounted products in order to attract a bigger number of
customers. The brand's competitive position in the retail business has also been
aided by its low pricing strategy and an emphasis on customer experience.
III. Opportunities for Added Value
a. This includes business areas/activities in which Walmart and Target can add significant
value for their customers.
 Walmart's main tasks include, first and foremost, purchasing and distributing
items while keeping costs under control. Customer service, inventory control, and
distribution management are also priorities for the organization.
 Target's operations are centered on the customer's experience and providing an
exceptional shopping experience at a low cost.
b. This also explains which between the two (2) rival firms effectively capitalizes
opportunities for improvement of products and/or services.
 Walmart is efficiently capitalizing prospects for products and services owing to
the strategy they followed, which is online sales, with Walmart's online sales
increasing by an outstanding 63 percent in the first quarter of 2017.
c. Cite recommendations for the firm with weaker value-adding efforts and suggestions to
maintain competitiveness with the other firm.
 I recommend that Target should implement selling their items online or online
sales, because it not only allows them to promote their products via the use of
technology, but it also allows them to increase profits and preserve their
competitiveness. The ability to address a worldwide market by broadening the
number of prospective clients is enabled by online sales. It enables Target to save
money on setup and operations.
IV. Opportunities for Reduced Costs
a. This includes an assessment of both Walmart’s and Target’s non-competitive value chain
areas/activities.
 Walmart and Target are major corporations that compete with one another. They

02 Task Performance 1 *Property of STI

Page 2 of 2
 BM2021
Names Section Date

advertise their products and must spend money on advertising. I believe it would
be better for them to save money on advertising and instead utilize technology to
market their items and sell them online. By improving supply-chain management
and delivery, e-commerce may lower transaction costs. More orders may be
transported straight from the warehouse or wholesaler to the client if a business
grows its product offering online. 
b. This part must present a comparison of cost-efficiency between the two (2) firms.
 Walmart, it was believed, has a better cost efficiency than the other two companies
since they focus on low costs. Walmart achieves these cheap pricing because to its
operating efficiency and a relentless pursuit of low costs from its suppliers. In
addition, when compared to Target and other competitors, Walmart achieves its
targeted outcomes for the least amount of money.
c. Provide recommendations for the firm with weaker cost-cutting initiatives and
suggestions to maintain cost competitiveness to the other firm.
 Target must decrease supplier costs, reduce manufacturing costs, reduce financial
expenditures, and update their marketing activities due to their lower cost
efficiency. They must know their rivals and clients in order to preserve their
competitiveness, as well as cut costs.

02 Task Performance 1 *Property of STI

Page 3 of 2