Evaluation of Walmart's Competitive Strengths and Strategic Plan

This report evaluates Walmart's competitive strengths and market position, as well as their strategic plan for the organization. It includes an analysis of their performance, strategic choices, and reflection on the process.

STRATEGIC
MANAGEMENT BUS3005

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
PART A (1)......................................................................................................................................1
Evaluation of the performance of Walmart over its competitive strengths, market position and
areas which requires further improvements................................................................................1
PART A (2)......................................................................................................................................2
Evaluation for strategic plan for organization.............................................................................2
PART B............................................................................................................................................5
Reflection....................................................................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Strategic management refer as designing goals and objectives for developing the
competitive advantage to the organization. Generally strategic management focused in
deploying the employees and resources for accomplishing the desired goals (Schiffer and
Walther, 2018). This study covers the description of Walmart, a multinational corporation that
also operates a hypermarket chain. This report covers the critically evaluation of company
performance which covers the competitive strength and market position of the firm. Report will
further explore the evaluation of strategic plan for the organization that entails the appropriate
tools and justification for strategic choices. It also covers the reflection.
MAIN BODY
PART A (1)
Evaluation of the performance of Walmart over its competitive strengths, market position and
areas which requires further improvements
Walmart is a retailer firm famous for offering low price products to their customers along
with the fulfilment of the requirements of their buyers needs and desires. It is among the top
most company within the household list. In order to discuss about their competitive advantages,
it has been illustrated that the company takes cost leadership as the firm offers low prices to their
customers which is not being offered by their competitive organizations. It requires great
strategy to handle such benefits to their customers. In order to manage such situations, the firm
provides quality assurance to their users, offer great private brands, elite supply chain logistics
along with providing products in appropriate quantity (Schiffer and Walther, 2018). The
company also have elite distribution infrastructure as their distributor centres are comes under
effective supply chain logistics and offer key component into Walmart cost leadership position.
The company is situated at diversified locations in great quantity along with having great
goodwill among their buyers also helps the firm to get competitive advantage over their
competitors. they share great leeway with their consumers and provides exponential network to
each and every person within the locations at which the brand is available.
The establishment uses high level of automation in context of technology which helps
them to provide good customer services to their users. They also offer affordable private brands
that offer great value of the money. Apart from this, the Walmart also share great value of
1

financial strength by investing into new sectors, opening new stores, maintaining their services,
enhance spending over automation of deliverables along with greater marketing budget. The
firm is situated at diversified locations and also deals into international expansion for the
betterment of the society as well as for the benefit of their business. With the help of getting so
much benefits in context of competitive advantages. the company constitute a position of
greatest retailer firm within the market. with the help of their appropriate strategy of providing
products and services at low prices, the company shares a great level of increase in sales during
2020. Hence, this increases by 8.9 in 2019 and share sales benefit of 9.5 percent in 2020
(Howes, 2018). Their total revenue has been enhanced by 6.72 percent and having market share
of around 10.49 percent.
Although, the company requires improvement in certain areas such as in their supply chain
and adding automation. In order to enhance their services, the company plans to spend about 15
million dollars in the upcoming years. with the improvements in supply chain management,
effective logistics and technological advancements, the firm will able to improve their online
sales into more efficient and effectual manner. Hence, they have to change certain specifications
into their working which provides appropriate services to their buyers or purchasers at certain
specified locations as sometimes they have to suspend delivery and pick up over specific areas
because of their restricted services.
PART A (2)
Evaluation for strategic plan for organization
Strategic plan refer as the systematic document which is the required actions that has
been evaluated by the firm in order to accomplish their goals. It is the process which the
company determines their future vision and involves the development of sequence where these
goals and objectives should fall which enables the firm to complete its stated vision. As for the
Walmart company they have invested billions on streamlining their supply chain, technological
innovation. As to sustain in the market it is important to review the strategy for better result.
Thus, strategic planning process involves the factors which are as follows:
Analyze the strategic position: It is the primary stage that entails setting of further stages which
are going to be implemented. Thus, for the Walmart it is essential for them to know as where
they are standing right now (Nowak, 2020). It will guide the firm to make right choice for
selecting the stakeholder which accounts both internal and external aspects. Company can also
2

proceed with consulting with their executives as to analyze the main strategic issues, through
which firm will be able to set their goals of accomplishments.
Setting objectives: It is the most essential aspect which states as once the company analyzed
their current position then it is the time for designing the objectives so that desired goals can be
achieved. For this Walmart company need to know which objectives create the major impact
over the company's performance.
Plan development: After identifying the objective its time to make a strategic plan that aims to
reach to desired goals. This process required the identification of the tactics that are important
for attaining the objectives as well as defined timelines. Mapping of strategy is the powerful tool
that that helps in visualizing the entire plan. From this Walmart company can proceed to use the
values and mission statement so that if they feel that such process are no longer profitable for
them then they can proceed to discard.
Plan implementation: After designing objectives and plans, now it is time for implementing the
plan for achieving goals. It is important to first communicate the plan with others so that
resources are arranged accordingly (Sax and Andersen, 2019). As Walmart company can begin
to use the KPI dashboards to completely communicates the team duties.
Plan review:Reviewing the plan is the final activity, it is beneficial to revise the process, so that
important and required modifications can made. It reduces the chances for the errors. Therefore,
Walmart can also begin to review their plan before implementation as it will prevent them from
last moment hustle.
Ans-off matrix:
This framework refers as effective tool that helps the organizations to know their growth
plans and strategies. With this executives of the firm are able to streamline the process and make
improvement for better future opportunities. It involves the factors which are as follows:
Market penetration: It defines as company uses the same existing market for promoting or
selling their existing product. This process mainly aims to grow the market share of the company
by using penetration strategy. For this Walmart firm can proceed to reduce the price on their
products to attracts the customer, company can also begin to increase their product marketing
and distribution efforts. This strategy is beneficial as from which the firm will be able to
measure the performance of the products as such product is doing well in the market or not.
3

Product development:This process define as using the new product to sell in the existing
market, it is quite related to the innovation. In this company proceed to develop or introduce new
product by analyzing the need of the customer, it mainly aims to develop the potential customer
base for the company (Kalogiannidis and Mavratzas, 2020). It generally requires the extensive
market research. This strategy has been developed when the company have the strong
understanding of their current market. For that reason Walmart company can proceed to invest
in research and development for designing the new products, firm can also begin to analyze their
competitor's services and products in order to make the product unique and affordable.
Market development: In this company is focusing on developing a new market for their existing
products. Company look forward in searching the suitable market so that they can expand their
services for the maximum profit. The main criteria which is required is greater understanding of
the new market otherwise it will be difficult for the firm to successfully established in new
market. This process is most beneficial in such cases which stated as company must have the
better knowledge regarding technologies that guides them to leverage into the new market field.
Or having a potential consumer in the new field is also beneficial for maximum sales (Forrester
and et.al 2018). Thus, company can proceed to follow approaches which are catering to various
or distinct consumer segment, they can also proceed to expand regionally for acquiring the
knowledge.
Diversification:Concentrates on entering the new market with the new product, moreover this
strategy is risky, due to its demand of new market and new products. But often this process
offers the great revenue opportunity to the firm, as it makes the ways for streamlining new
revenues for company.
Thus for the Walmart company they can proceed to use the product development
approach as with this they can proceed to make innovation in their product for their firm's
efficiency. Reason for selecting this strategic choice, as with this organization are able to meet
the demands of their potential customer, it will guide them to develop trustworthy relationship
with their customers. From this Walmart firm can be able to foster the innovation environment
in their company, it will help them to depict such culture so that employees will be able to lay
out the work efficiently in a timely manner (Naim, 2021). Company can also proceed to use the
market penetration strategy to penetrate their market, it will help them to develop large customer
base for their products which also means that they can effectively accomplish their objectives.
4

PART B
Reflection
From this module I learn a lot, I got to know about the strategic planning, as how it helps
the organization to improve their functionalities for betterment. Before working on this module I
was not sure that I will be able to complete the report with efficiency and on time, due to my
introvert nature. But with the help of seniors notes and professors feedback I was able to
complete the module in a given time. As professor taught us during the lecture as how to make
the strategic choices, by remembering all the factors I developed the strategies to complete the
module. Before initiating the project I was unsure about the module performance because I was
lacking in analytical strategies but after completing the project I developed a sense of
responsibility, it also helps me to develop or enhance analytical skills.
I also learn that how strategic plan works and make the organization able to
accomplished their goals and objectives. By making the choices for the strategies, I asked my
tutor to give feedback so that I will proceed to make improvements. With the help of professor's
guidance and support of colleagues I was able to deliver the project on time. For time
management I used the priority methods as to divide the work according to its priority which
helps me to lay out the essential work first, by following this method I was able to meet the
project deadline. By working on this module helps me to clear all my doubts I also developed
the confidence to lay out such type of projects in future.
CONCLUSION
From the above report it is concluded that strategic management is the required process
which allows the firm to reach their desired goals and accomplishments. Above report illustrated
the strategic plan for the firm that would be helpful in developing the competitive advantages.
This report carries out the evaluation of the strategic plan that are required for the firm to make
successful step in their market field. It further lays out the stages of strategic plan that explains
the analyzing of current position which further focused on objective formation and so on. It lays
out the framework which is ans-off matrix along with the justifications. It finally concluded with
the reflection.
5

REFERENCES
Books and Journals
Forrester, P. and et.al 2018. Knowledge Transfer and Impact?.
Howes, T., 2018. Effective strategic planning in Australian universities: how good are we and
how do we know?. Journal of Higher Education Policy and Management. 40(5). pp.442-
457.
Kalogiannidis, S. and Mavratzas, S., 2020. Impact of marketing mix strategies effective product
development issues in MNCs/Retail. International Journal of Business Marketing and
Management (IJBMM). 5(12). pp.118-125.
Naim, A., 2021. Applications of Marketing Framework in Business Practices. International
Journal of Innovative Analyses and Emerging Technology. 1(6). pp.171-186.
Nowak, R., 2020. Process of strategic planning and cognitive diversity as determinants of
cohesiveness and performance. Business Process Management Journal.
Sax, J. and Andersen, T.J., 2019. Making risk management strategic: Integrating enterprise risk
management with strategic planning. European Management Review. 16(3). pp.719-740.
Schiffer, M. and Walther, G., 2018. Strategic planning of electric logistics fleet networks: A
robust location-routing approach. Omega. 80. pp.31-42.
Schiffer, M. and Walther, G., 2018. Strategic planning of electric logistics fleet networks: A
robust location-routing approach. Omega. 80. pp.31-42.
6