PART A: WALMART’S PERFORMANCE

Data is from CISMarket

The graph shows that Walmart will continue to hold the top position in its industry
through the third quarter of 2022, with a market capitalization of $577,770 million, or
27.34% of the entire market. Nonetheless, Walmart's market position is fundamentally
shifting despite Amazon's quick expansion and its market valuation being just 0.64%
smaller than Walmart's.

WALMART’S COMPETITIVE STRENGTH

Walmart’s Five Force

Walmart’s VRIO
Walmart’s Value Chain 

Walmart's supply chain management is an organisational resource that generates a long-

term competitive advantage, according to VRIO, Value Chain, and Five Forces analysis.
Supply chain management that supports company scale, cost leadership strategies, and
low prices ensures a strong value chain. In the resource-based perspective of Walmart's
retail operation, supply chain management is a long-term competitive advantage because
it allows the company access to the lowest costs from manufacturers.

Furthermore, Walmart Inc. is thought to have a durable competitive edge thanks to its
important e-commerce operations. Strengthening market access and enhancing customer
experience are valuable and quite uncommon examples of this fundamental capability
(only a few companies can match e-commerce operations in scale). paradigm) and
challenging to replicate (among smaller retailers). E-commerce provides a sustained
competitive advantage for the business because it is organised around this skill. In order
to maximise the effectiveness of the retail value chain, competent supply chain
management and e-commerce operations are also necessary.

WEAKNESS TO IMPROVE
It is clear from Walmart's VRIO and Value chain analyses that the company's weakest
area is its level of customer service. On the other hand, Lisa Pietro to CEO Doug -
McMillian claims that she had voiced her danger of being ill when her salary did not
allow for health guarantee and that there was no ensure from Wamart if she used unwell
time (Frank et al. 2018).
Also, the company’s service rating is quite poor, according to information gathered from
the trust pilot. Consumers give Walmart's customer service a score of just 1/5. These
criticisms may be the result of the company's efforts to reduce operating expenses
because it has a history of underfunding staff training and poor pay for shop personnel,
both of which may deter employees from working hard (IvyPanda).

To improve this weakness, according to Mr. Doug McMillonn Walmart will invest in
their general goods business and grow in higher-margin sectors. A prime example is the
recently announced acquisition of Zeekit. Using interactive virtual fitting rooms, this
start-up fuses fashion and technology, underscoring the ambition to rapidly expand our
garment industry. They keep working to expand our health and wellness company and
provide customers and employees with a better healthcare experience. Their purchase of
MeMD is a significant move in that direction. It was crucial to provide a healthcare
capability.

STRATEGIC TO GROW

Ansoff’s Matrix
Walmart has dropped its footprint in a number of significant overseas regions, including
Argentina, Japan and United Kingdom. With administrative offices worldwide, China,
India, Mexico, Canada, and over 20 other nations from all over the world, Walmart is still
a global leader in the retail industry.

Walmart's plan is to concentrate on the ease of shopping and make every effort to
increase the quality of its products, especially in order to be able to enter the Chinese
market in the most thorough manner. The health of the customers is the main goal.
Walmart needs to "Go native" by applying lessons from the pioneers like Carrefour in
order to succeed in the Chinese market. Because they are potential clients with significant
demand, they must alter their products to have a longer shelf life and more ecologically
friendly packaging to become an important item for large families in China that demand
for products to increase (D. Lee 2006, Naughton 2006)
Walmart needs to shift its client base if it wants to expand in China. Walmart should
"Go up market" to focus on middle-class clients rather than low-class ones because this
customer segment is popular in China. Also, this will improve Walmart's suitability for
key Chinese cities like Shanghai, Beijing, etc.

Tows Matrix For Walmart in China

Weakness

Wal-Mart has only opened 189 stores in China despite having been doing business there
for 15 years, and the most of them are in major coastal cities like Guangdong, Fujian, and
Zhejiang. The distribution is somewhat concentrated in the Chinese supermarket industry
and there are only a small number of units. 

On the other hand, compared to global rivals like Carrefour, the company arrived in
China a little later than Wal-Mart did, but it currently has a few more outlets than Wal-
Mart has in.

The networked distribution system and the small number of warehouse in the provinces
will not be able to provide economies of scale to compete with regional rivals. The tense
relationship between Wal-Mart and its suppliers may prevent things from getting better.
So, labor issues appear secondary for businesses competing for WalMart's orders.

Strengths 

Walmart currently has a strong local supplier network and local sourcing capabilities.
Because of their cheaper production and transportation costs and lower labour expenses,
they significantly increased Wal-competitive Mart's edge in terms of product transaction
costs (Hemphill, 2005). 

In the meantime, WalMart with regional vendors has significantly improved. To source
goods for WalMart's brands, numerous specialized supply agreements and business
alliances have been formed with regional powerhouses (Talley & Keeffe, 2010).
Additionally, Wal-Mart has created the online sourcing platform Retail Link to link all
registered local suppliers throughout China (Hu, 2010).

WalMart is the top supermarket using online sourcing platforms for networked suppliers
in the country as compared to many domestic and overseas rivals. This might lower the
binding price of local product supply and boost WalMart's ability to access the lowest bid
pricing.

Opportunities 

There is a fantastic chance for Wal-Mart to gain reinforcement and incentives from the
government in less developed nations, enter those markets, or grow its market share.
Wal-Mart has further potential to compete in developed markets and expand thanks to the
government's approval of foreign collaboration with China and the huge and still
expanding coastal regions markets. this positive advancement in a new, even more
affordable manner of functioning. It is also advantageous and timely for Wal-Mart to
launch an online shopping service in order to realize the great potential of online
shopping and capitalize on the interest and convenience needs of young people, as most
competitors haven't yet done. This is because the majority of internet users in China are
young people.

Wal-Mart will have the necessary backing to create the best online shopping experience
and platform in China thanks to the country's evolving information technology
infrastructure and integrated online payment system.

Threaths 

Wal-mart is likely to face new management challenges and higher labor expenses as a
result of recent choices and steps taken by the Chinese government to reduce social
inequality. Additionally, the decline in exports and industrial output in China has
highlighted the problem that many regional suppliers and factories are on the point of
bankruptcy or suspension. 

As a result, Walmart faces more challenges when it is limited in its access to low-cost
sourcing options and is unable to reduce product transaction costs. In addition, WalMart's
decision to outsource production to some private workshops in China in order to lower
transaction costs due to regulatory pressure and lower wages has come under public
scrutiny and criticism (Mufson, 2010) because it puts local suppliers and workers'
interests at risk. This is because Chinese inhabitant are now are interested in to corporate
social responsibility.

S/O Strategies:

Because of its outstanding reputation for offering competitive prices, Walmart will find it
simpler to develop a marketing campaign. The business should take advantage of the
popularity and increase brand recognition by placing sizable billboards on roads or on
buildings.

To take advantage of the enormous online purchasing potential offered by the big and
expanding population of internet users in this age range, WalMart could consider
developing an internet shopping service for a distinctive online shopping experience.
young, and they benefit from China's advanced technology, information infrastructure,
and integrated online payment system.

W/O Strategies:

The corporation can generate a sizable stores in China thanks to the to the government's
approval of foreign collaboration with China and the huge and still expanding coastal
regions markets. Moreover, with the huge of internet users in China are young people,
Walmart have a big chance to develop their online market with online shopping.
Therefore, Walmart can improve their network distribution.

S/T Strategies:
As a result, it is advised that Walmart enter the central or western Chinese markets or
boost its market share there by using a business plan that involves providing reduced
prices, discounts, and exclusive promotions for genuine items. Using government
assistance and the ability to regulate transaction costs, businesses can use their products
to draw in current clients and weaken the competitive position of rivals.

Walmart is also advised to perform partnerships with to increase market share and
business size at a cheap cost, use already-existing supermarkets in the peripheral.

In order to quickly and cheaply boost its market share and volume of sales in certain
coastal locations, Walmart could also form agreements with already-existing
supermarkets. To take advantage of the enormous online purchasing potential offered by
the big and expanding population of internet users in this age range, Wal-Mart could
consider developing an internet shopping service for a distinctive online shopping
experience. young, and they benefit from China's advanced technology, information
infrastructure, and integrated online payment system.

Finally, it is advised that Wal-Mart actively establish a labor chapter before formulating a
labor union proposal; and to protect the interests of suppliers, a fair and regular system
should be implemented in place of a method of product procurement that resembles a
zero-sum game.This is because many manufacturers and suppliers are still in the midst of
a recession, and the Chinese government and people are becoming more and more
important about worker protection and corporate social responsibility While also making
sure they can supply the goods in the agreed-upon quality and quantity, local operations.

W/T Strategies

Nearly similar to the W/O Strategies, Walmart still has problems with the suppliers and
factories in China. Besides, the company should focus on wage and employers service
insurance to insurance to make the employment offer more appealing from the firm.

PART B: REFLECTION
I am really impressed with what I have learned from this models. It kind of opens up my
perspective and gives me more choices when I am assessing a business. It broadens my
standpoint and expands my range of possibilities when assessing a company. The models
actually follow a logical order, starting with an assessment of the external environment
and moving on to the internal environment of the organization, identifying strengths,
creating a growth strategy, and finally evaluating performance. I had the impression of
being a product mananger the entire time—someone who studies products, quality and
try to make the best product for customers. It helped me organize the duties I would need
to complete in the event that I wanted to review a firm. I think the course has given me
the skills I need to succeed as a manager with a business mind.
I became aware of my limitations in analysis skills as a result of the learning exercises. I
have many problems with charts and some statistic. I also believe that the leader's
position is crucial. Without one individual who can manage and supervise the job, it is
exceedingly challenging for a team to function effectively.