Influence of Strategic Innovation by Analyzing Internal and External Environment on Industry Development

This document is about the Influence of Strategic Innovation by analyzing the internal and external environment on industry development It analyzes the internal and external environment of key factors for global industry development. Also explain the innovation, strategic innovation, supply chain, CSR, governance and ethics, VIRO Analysis, PESTLE Analysis, SWOT Analysis, and Core Competencies

Module name- Strategic Management
Accessor name-Daw Khin Khin Saw
Name – Zun Thet Hmu San
ID- 22429252
BAM-01-22 (Assement-1)
Influence of Strategic Innovation by analyzing internal and external environment on
industry development
In this essay, we need to not only explain about the innovation, strategic
innovation, supply chain, CSR, governance and ethics, VIRO Analysis, PESTLE
Analysis, SWOT Analysis and Core Competencies but also analyze the internal and
external environment of key factors for global industry development.
In 1962, Sam Walton started a store and a mission: Save money to improve
people's lives. Walmart Inc (Walmart) specializes in supermarkets. He is a retailer of
departmental and discount stores and neighborhood markets. The company stores
dry goods and consumer goods. We pay hard every day for clothes and houses at
affordable prices. It also operates warehouse clubs (including Sam's Clubs)(Walton,
2020). As a growing global digital enterprise and with over 11,500 stores, we
maintain Mr. Sam’s vision, but now, we can help more customers than ever.
Walmart markets products under various private labels and licensed brands
including Equate, Bonobos Fielder, Mainstays, George, Onn, Parent’s Choice, Time
and Tru, Wonder Nation, and No Boundaries. The company offers fuel, gift cards and
financial services and other related products including money orders, prepaid cards,
wire transfers, money transfers, check cashing and bill payments. It merchandises
products through various e-commerce portals across the US, Canada, Africa, Central
America, China, Chile, Mexico, and India (Market Line, 2021). Walmart is
headquartered in Bentonville, Arkansas, the US. At Walmart, it has always been our
purpose to help people live better lives.

There are many competitors such as Kroger, Costco, Target, IKEA, Home Depot, and
Amazon are the main Walmart competitors as of 2022. The direct competitors can
be named as Amazon Retail Group and Kroger. Among the competitors, Kroger is
the main and direct competitor for Walmart. In 1883, Barney Kroger invested his life
savings of $372 to open a grocery store at 66 Pearl Street in downtown Cincinnati.
The son of a merchant, he ran his business with a simple motto: “Be particular.
Never sell anything you would not want yourself.” This credo served Kroger well
over the next 135 years as the supermarket business evolved into a variety of
formats aimed at satisfying the ever-changing needs of shoppers. The Kroger Co. is
a publicly held corporation (NYSE: KR). Still based in Cincinnati, Kroger operates
nearly 2,800 stores under two dozen banners, ranking as one of the world’s largest
retailers. According to (Greenspan, 2019), in the case of Walmart, Consumer
satisfaction is not high because individual customers usually do not make large
purchases. In addition, Convenience and price are the main factors that reduce the
bargaining power of consumers. The cost of conversion is very low for consumers,
as they can successfully find the same product rather than cheaper and more
convenient. Walmart's pricing strategy reduces customer bargaining power.
Therefore, each customer has little influence on the brand. On the other hand,
Proponents of her case have been working to make the actual transcript of this
statement available online. In the retail sector, there are many retailers in the
market and consumers can buy from the store they want. In addition, the product
offers and costs of such supermarkets and stores vary slightly in terms of customer
promotion. Transferring costs from one retailer to another is also less influential and
influences consumer behavior. In addition, the e-commerce retail method expands
the options for receiving products from different retailers (Bronnenberg & Ellickson,
2015). Keeping in view such a method, the bargaining power of customers is high in
the retailing industry.
Innovation is one of the most important factors in a company's long-term
competitiveness. As technology and globalization accelerate, the market becomes
more competitive and customer demand increases. As a result, Walmart company
like Amazon, Costco and Kroger need to be more competitive. It has driven billions
of dollars in technology to attract and retain its customers. Walmart's innovation

strategy depends on disruptive innovation. Consumer needs are constantly
changing and Walmart's goal is to connect its customers everywhere in a cost-
effective and better way (Rock, 2016). Walmart has spent billions of dollars on IT in
recent years. In 2015, the company invested. Walmart aims to be more intimate with
its customers. Be an innovator by getting back on stage. New technologies are being
used to track statistics and track stores. Walmart supply chain technology can
accurately predict demand. Monitor statistical steps and make predictions. Create
high-performance transition lines and manage service response support deliveries.
for example, Walmart uses cross docking as its accounting strategy. Cross docking
enables efficient restart of inventory. Suppliers shipped to the company's warehouses
without long stays in stock. This strategy significantly reduces Walmart's costs and
they transfer these savings to their customers at very competitive prices (Lu, 2014).
Company governance is important for good innovation. Get regular updates for the
Walmart Top Management Project. The senior independent director leads the
project with the chairman's evaluation. Walmart top management capabilities to
achieve a better product of Statements and details are required. Walmart's Board of
Directors will also visit projects and production facilities to assess the skills and
competencies of partners. Walmart managers discuss and approve non-executive
directors. When Walmart's project was led by a senior independent director, The
director is experienced and can easily complete the food production work for the
project. However, since there is only one independent director, the project will take
time. Walmart dominates over other competitors like Amazon and Kroger. While the
Kroger board manages policies that go against goals and objectives, Walmart
creates a relationship between the staff and the board (Trott, 2010).
Walmart is known for its great creativity and ingenuity. Walmart effectively uses
market constraints to determine its potential. for example, A company may be
politically or economically involved determining real estate growth determines its
growth potential. Walmart has a better understanding of each of its own
investments and how it handles the innovations it produces. As a result, Walmart's
innovation is easier than other global competitors, such as Amazon's innovation
(Harvard Business Review, 2019). Walmart's unique business model is also an
important advantage for the retail brand and many of its products. The company

was founded in 1969 in Delaware and has since become the largest retailer in the
US with the largest number of retail stores. Walmart has more than 11,300 retail
stores and employs 2.2 million partners worldwide. The company has three major
reporting areas for its operations at Walmart US: Walmart International and Sam's
Club. Walmart US is the largest of the three highest paid companies in the world
(Ambrosini & Bowman, 2009).
Managers are involved in three phases of strategic planning: corporate strategy and
business strategy. The operational strategy should follow the strategy of the
company as a whole and implement the strategy more effectively. Same as above.
For Walmart, its corporate and operational strategies are cost-effective leadership.
In particular, we will focus on its HR strategy. In addition to the above, Walmart is at
the forefront of developing its low-cost employment policies that could significantly
reduce labor costs. Through cost-effective HR activities, Walmart strives to
dominate the competitive advantage. Due to Walmart's rarity and good
collaboration, Walmart was able to compete with its competitors. Kroger provides
the raw materials and services for our brands. It maintains a global supply base with
thousands of local and international suppliers of ingredients. We are the national
brand supplier of other products on our platform. Due to the diversity and breadth
of the products we sell, Our supply chain - our suppliers and our suppliers operates
in countries around the world. Our direct suppliers supply inputs to the Kroger
operating system, which produces 33% of all our branded products, including 44%
of our product line (Grant, 2010).
In a business, a company should have valuable resources and capabilities.
According to the VIRO model, Walmart's strategy is to build strong local businesses
that Walmart uses to drive growth while creating growth for the company and our
partners, and to create a positive impact on our stakeholders. One of the main
sources of Walmart's top strengths and competitive advantage is its large, global
supply chain. Walmart is one of the top retailers in the United States. Walmart has
always been a leader in Supply Chain and Inventory Management. Strong brand
value translates to customer loyalty and strong financial performance for Walmart.
Top e-commerce players face threats from other e-commerce brands in regional

markets around the world, such as Amazon and Alibaba. In recent years, Walmart
has invested heavily in technological innovation to enhance its revenue and
competitive advantage in the industry (Pratap, 2021). Kroger's VRIO analysis will
look at each of its internal resources to assess whether each of its internal
resources provides sustainable competitive advantage. Kroger VRIO analysis looks
at how these resources can be upgraded to provide more competitive advantages
at each stage. Finally Analyze resources to determine whether they offer
sustainable competitive advantage. Unused competition advantage; Temporary
competitive advantage; Summarizes whether competition is fair or weak. The
Kroger VRIO analysis shows that Kroger's financial resources are invaluable in
helping to invest in emerging opportunities. Kroger also helps fight external threats.
According to Kroger's VRIO analysis, its local food is a valuable resource due to its
diversity. It enhances the value that customers see. The difference between these
products makes them more valuable than customer competition (Edwards, 2018).
After innovation, Corporate Social Responsibility (CSR) is an important part of any
business, including Walmart. Walmart CSR Strategy We support Walmart products
and services. We rely on the following three principles that create business
opportunities for retailers and retailers. Improving the sustainability of product
supply chains for humans and the planet. Build a strong community where retailers
work. Among its competitors, Kroger's CSR extends beyond Walmart and Amazon to
help create organic food that is accessible to people. Kroger also guarantees the
safety of farmers regarding chemicals. However, with 81% of Walmart's total
engagement, the engagement of Walmart employees is higher than others.
Walmart managers should take care of the health of their employees and people to
enhance their CSR capabilities to protect those who are resistant to the Covid-19
virus. Enhancing CSR features can enhance the brand image and customer
satisfaction. Only then will Walmart be able to enhance the performance of its
products. Productivity and innovation will increase. Saving money is the key to that
goal from the beginning. But today it means 'live better'. Customers have always
trusted us for our prices, but the products they buy are an inspiration to their family
and friends. The creators wanted to know if this was good for the earth (Ewing,
2021). The strategy of Walmart is to build strong local businesses that are powered

by Walmart—while at the same time generating growth for the company and our
partners, and making a positive impact on our stakeholders.
The last point of the corporation is to set many guidelines that clearly state their
principles. These guidelines apply to changes arising from these procedures in
accordance with existing laws and regulations to ensure good strategic
management within the Company. The Walmart Code of Conduct, published in
February 2021, sets out our internal policies and our values. Ethics were replaced
by external principles and expected behaviors. The Code applies to all of Walmart's
directors and affiliates, the Board of Directors of Walmart. In addition to covering
expectations on topics including ethical decision-making, conflicts of interest, use of
inside information, protection of Walmart’s property and other foundational ethics
and compliance issues, the Code of Conduct makes clear when and how to speak
up, our no-retaliation policy, consequences for failing to abide by the Code and
examples of how to put integrity in action.
The study suggests that there are a number of external and internal factors that
have a significant impact on the performance of an organization like Walmart. The
report includes a VIRO analysis to consider issues affecting the organization's
business strategy to achieve its goals and objectives. Porter with five inventors In
addition, The report provides information on different strategies for overcoming the
impact of problems and assessing progress for limited progress.
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