Strategic Management US Report 2022

Management
Strategic management
Student’s name
8/22/2019

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Executive summary
This report mainly highlights about the strategic management aspects, which the
company adopts various strategies in order to generate the competitive advantage and also win
over the other competitors. In terms that are more specific this report highlights about the Wal-
Mart company, which mainly focuses over the techno- centric aspect rather than the customer
centric aspect, and this makes the company looks different from its competitors. Further, certain
course of actions are also generated which helps them company to earn more success such as
focus on cost leadership strategy, economies of scale and follow more customer centric approach
along with the technological aspect.

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Contents
Executive summary.........................................................................................................................1
Introduction......................................................................................................................................3
Course of actions.............................................................................................................................5
Conclusion.......................................................................................................................................8
Recommendations............................................................................................................................8
References........................................................................................................................................9
Appendix........................................................................................................................................10

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Introduction
Strategic management mainly helps in identifying and description of the various
strategies, which managers carry to achieve the better performance and the competitive
advantage for the organization. As it is being said that every organization must lead to some
competitive advantage which obviously leads to the profitability and higher returns for the
companies or the industries.
Other than this, strategic mainly highlights about the planning for both predictable as well
as unfeasible contingencies, which further helps the organization to face the competition by
formulating as well as implementing the appropriate strategies so that they can easily attain the
sustainable competitive advantage. Hence, it also states that it is one of the continuous processes,
which helps the organization to evaluates, control the business, set goals accordingly facing all
the potential competitors and then accordingly reevaluate the strategies to generate the higher
returns in future (David, & David, 2013).
The aim of this report is to know about the Wal-Mart competitive advantage strategies in
which, Wal-Mart, plays the ever- growing role in the development of the company in the US
market. Hence, it is one of the largest private stores, which mainly deals in apparel, groceries and
music among other products and is considered as the top retailer in most states. From the global
point of view, Wal-Mart sales are larger as compared to the other retailers working in same field.
In terms of competitive advantage aspect of Wal-Mart, it mainly highlights that technology and
the scale are at the core of the Wal- mart competitive advantage over its rivals. Across so many
retailers, chain working in the same field tends to be more efficient than single store retailers are;
moreover, chain leads to more information technology. Wal-Mart in this case was the early
adopter of the bar code technology. Latest, Wal-Mart also built the vast empire for the
customers’ convenience. Moreover, certain recommendation are mentioned in this report which
in future if the company will adopts it will surely generate more success than usual in the coming
future.

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Other than this, pricing strategy in terms of competitive advantage is also considered as
the key strength of the brand. This aspect not only helped the company to enhance the brand
image by applying the low cost strategy but along with this, they also target the large base of
customers. Hence, due to this the company gains its competitive advantage and generates the
attractive value proposition. Their value proposition is mainly based on two aspects one is low
cost of products and secondly, higher quality of products and services to the ultimate customers
and hence, these two helps in creating value for the customers (Rothaermel, 2013).
In sustainability aspect, Wal-Mart has achieved the sustainable competitive advantage by
being the higher responsiveness towards the outside environment as well as inside environment.
Outside aspect mainly comprises of demand and the competition to which the company needs to
fulfill as well as to face it by being competitive. Whereas, inside environment mainly comprises
of distribution and inventories management as well as the ability to encourage the new initiatives
which helps in generating the sustainable environment (Finster, & Hernke, 2014).
Other than this, Wal-Mart recently made the sustainability initiatives, which had a real
impact over the company’s operations and over its supply chain, which further leads to the
progress that leads to offset by the companies’ continuous growth. This is all because of, certain
changes made in terms of sustainability such as Wal-Mart has opted for 100 percent renewable
energy. They also opted for zero wastage aspect, shifting towards the greener products, which
was one of the biggest improvements. In addition, helps the company in generating the higher
value proposition (Campbell, coff, & Kryscynski, 2012).
Lastly, it is seen that Wal-Mart is one of the strong brand due to its popularity as well as
financial strength. Along with this, lower business cost model generates the competitive
advantage aspect, which helped them to exploit the economies of scale. Along with this, in
customers Point Of View Company makes an effort by more focusing on higher customers
convenience by taking bold initiatives in the area of technological aspect or the digitization.
Hence, such aspects help the company to deliver better services to their customers and help them
in maintaining the popularity and improving its sales in an entire market (Campbell, coff, &
Kryscynski, 2012).

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Hence, it is seen that Wal-Mart business strategy behind its success is they follow the
tech centric approach along with this they also focus on the large sales volume, which made
possible by the large customers base and the scale of operations. Other than this, they also focus
on maintaining the efficient supply chain system that helps them in maximizing the productivity
and reduces the outlays. Moreover, Wal-Mart also applies the low operational and overhead cost
in order to earn more profits out of it. Lastly, they mainly uses the bargaining power to grab least
prices from the suppliers which finally leads to the competitive advantage of the Wal-Mart and
make them earn more than usual (Ma, 2000).
Hence, in terms of strategic formulation, walart is most driven by the technological
aspect which is the main source of its competitive advantage which actualize the benefits of the
economies of scale and along with this it also leverage the efficiencies from the set synergies in
between the internal and external aspects. Hence, this generates clarity that Wal-Mart applies
technology at fullest and through this more of success is created.
Course of actions
In terms of Course of actions, Wal-Mart applies the best ways to further operate and
finally leads in growing its business for longer period. Moreover, the company like Wal-Mart
needs to be clear in terms of course of actions, clear goals so that further they can meet the
expected target. So accordingly, The first preference on which Wal-Mart mainly focuses on
improving the customers experience, for this company is mainly focusing on improving the
inventory efficiency and along with this they are also planning to open more checkout lines
during the peak shopping hours. Moreover, the company is also working over improving staff
levels and also worked over communication aspects.
Secondly, Wal-Mart in its course of actions rolled out its new app which is known as
savings catcher, which helps the ultimate customers to compare the price of the products, and
then according to the difference they can pay. They also started with the discounted themes and
many gift hampers and cards systems, which help them in attracting lot more customers and

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customers at the same time, are benefited because they are getting things on the high discounted
prices (Tanwar, 2013).
Other than this, Wal-Mart should also outlines about its quality aspect, which the
company should tell its customers that what all kind of quality which they produce and further
should set the realistic expectations for customers as well as for company team members and
accordingly achieve the its target for longer period of time (McGrath, 2013).
Other than this, the company should also focus on its continuous innovation strategies,
opting for creative options, ideas and new ways of doing and attracting customers leads the
company to earn more and also leads to the greater profitability in long run. Hence, it is very
much important for the company to always be innovative, set new vision and targets in order to
earn more than usual, grow, and generate more success (Hesterly, & Barney, 2010).
Other than these reasons, Wal-Mart should majorly focusing on maintaining its customer
centric as well as techno centric approach and should focus on the futuristic approach without
ignoring the sustainable aspects. Hence, such aspect highlights that Wal-Mart are obsessed with
the customers experience and they love to greet them with its good quality of products and
hence, allows the company to attract more of customers and generate more success and profit in
less time.
Moreover, Wal-Mart also focuses on maintaining its pricing strategies, which helps them
in increasing the competitiveness in both mainstream, and also on the online grocery markets,
along with this, it also helps Wal-Mart to attract more of customers for more shopping aspects
for food at the brick and mortar discount or dollar stores (Menon, 2014).
It is also seen that leveraging technology is one of the beneficial strategic move taken by
the Wal-Mart. This is all because this strategy, which generate the significant advantage over the
competitor. Moreover, it also ensures that amazon in this case they will not be able to steal the
position from Wal-Mart. Taking a technology as a leadership strategy was the finest approach
taken by the Wal-Mart, which helps them to attract more of customers by following the techno
centric, and quality maintenance approach (Christensen, & Raynor, 2013).

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Lastly, it is also seen that by having single focus over the prices, which are set to be low
in order to attract more of customers, are the best-set strategies as this particular strategy
benefitted Wal-Mart in long run. As it was the finest approach adopted by the company to earn
more of profit in shorter period of time. As, all the above-mentioned approaches having a
positive implication over the company because, all these approaches are made by considering
customers’ needs, wants and benefits related to them along with the generation of organizational
success (Barney, 2012).
Whereas in terms of future strategic goals aspect, Wal-Mart company needs to enlarge its
processes into a emerging marketplaces. Other than this, they need to improvises its
competitiveness against the other brands. Moreover, mainly focusing on future strategic goals by
taking an actions against the technological aspects and also works over reducing the level of
competition and generate more success on the regular basis.
Another strategic aspect, which the company needs to follow, is to start themselves
diversified with numerous of ways, products, services and much more. As such aspect helps the
company to attract more and more customers and due to this, company generates more success
for longer period of time. Various new ways of doing such as smart shopping carts, wearable
tracking devices, in store inventory tracker and block chain- powered delivery trucks fleets will
majorly affects the future sale of the company’s products (Hesterly, & Barney, 2010).
Along with this, Wal-Mart with the huge success generation now, they need to work
globally for which they need to develop more of the companies which helps them to face the
rivals or the local rivals. The biggest rivalry, which Wal-Mart faces, is Amazon, so in order to
capture the whole market they need to keep focus on techno- centric approaches as customers
centric the Amazon follows such approach.
Lastly, According to the entire analysis of the company, for future goals Wal-Mart need
to set certain boundaries, which they need to fulfill such as maintenance of economies of scale.
Along with this, they should work more over maintaining the cost leadership which cover the
inventory cost and helps in maintaining the strong value chain which for sure helps the company
to maintain its low cost structure as well as generation of more profit in lesser time period
(Stankevičiūtė, Grunda, & Bartkus, 2012).

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Conclusion
From the above report we can conclude that the role of strategic management is so
important that to maintain the future of the company it is the most preferable approach which the
company selects. In similar terms, Wal-Mart is one of the well-known company which also at
certain level applies the strategic management approaches in order to generate more success in
lesser time. There are so many strategies which Wal-Mart has adopted and will be opting for
earlier an easier success generation and will fetch long-term benefits out of it. Moreover, this
report also comprises of course of action in which Wal-Mart to earn more will follow those set
action such as upgradition in technological aspect, diversification in products and services will
helps them to earn more and easy and long term success.
Recommendations
Certain future recommendations are also taken into consideration to create and generate
more success in lesser time. Such as, Wal-Mart with the great success in other counties should
also try to invest in India. Tapping the new countries helps in generating more knowledge about
the customers and accordingly they can develop strategies to tap the countries for more success.
Other than this, Wal-Mart should opt both the customer centric approach as well as
techno- centric approach and accordingly form the various strategies to tap the customers, should
work over the outcomes, and generates more growth opportunities so that in future it leads to the
greater generation of company names and reputation worldwide.
Lastly, the company in case of promotional aspect needs to upgraded. As with the highest
earning power company should also applies various other promotional techniques to attract as
many as customers so that they can win over their competitors by maintaining their competitive
advantage over them.

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References
Barney, J. B. (2012). Purchasing, supply chain management and sustained competitive
advantage: The relevance of resource‐based theory. Journal of supply chain
management, 48(2), 3-6.
Campbell, B. A., Coff, R., & Kryscynski, D. (2012). Rethinking sustained competitive advantage
from human capital. Academy of Management Review, 37(3), 376-395.
Christensen, C., & Raynor, M. (2013). The innovator's solution: Creating and sustaining
successful growth. Harvard Business Review Press.
David, F. R., & David, F. R. (2013). Strategic management: Concepts and cases: A competitive
advantage approach. Pearson.
Finster, M. P., & Hernke, M. T. (2014). Benefits organizations pursue when seeking competitive
advantage by improving environmental performance. Journal of Industrial
Ecology, 18(5), 652-662.
Hesterly, W., & Barney, J. (2010). Strategic management and competitive advantage. Upper
Saddle River, NJ.
Ma, H. (2000). Competitive advantage and firm performance. Competitiveness Review: An
International Business Journal, 10(2), 15-32.
McGrath, R. G. (2013). The end of competitive advantage: How to keep your strategy moving as
fast as your business. Harvard Business Review Press.
Menon, R. (2014). Global or glocal: the future course for strategy. Global journal of Finance
and Management, 6(5), 427-432.
Rothaermel, F. T. (2013). Strategic management: concepts. New York, NY: McGraw-Hill Irwin.
Stankevičiūtė, E., Grunda, R., & Bartkus, E. V. (2012). Pursuing a cost leadership strategy and
business sustainability objectives: Walmart case study. Economics and
Management, 17(3), 1200-1206.

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Tanwar, R. (2013). Porter’s generic competitive strategies. Journal of business and
management, 15(1), 11-17.
Appendix
The above-mentioned image mainly highlights about the other strategic competitive advantage
strategies, which the company applies. Such as, protecting the price advantage, focus on the
individuals in order to ensure the operational efficiency. Other than this, Wal-Mart also give
importance to the other culture which are committed to the business success. Moreover, they also
helps in connecting people to the ultimate products and along with this, they also focus on
reducing the expenses and lastly, Wal-Mart also adopts the talent strategies which helps them in
driving favourable results which benefits all such as customers, employees as well as the
company.

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Wal-Mart efforts made towards sustainability. As the picture depicts that, they reuse or recycle
the unused products by reusing, refurbish or through re-selling it to the customers. In addition, in
terms of foods, the unsold food they donate it to the poor people or feed animals and lastly they
composting the anaerobic digestion aspect is adopted so that the food which is waste should not
be directly landfilled. Finally, when all these aspects are adopted and still the waste is left them
the company finally landfill, incineration it in the ground.