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

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)
[ CITATION Sam20 \l 2057 ]. 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 [ CITATION Mar21 \l
2057 ]. 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 [ CITATION Rob19 \l 2057 ], 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 [ CITATION Bro15 \l
2057 ]. 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[ CITATION Chr16 \l 2057 ]. 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 [ CITATION Jun14 \l 2057 ].
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[ CITATION Tro10 \l 2057 ].
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