Competitive Strategy Report: Starbucks and Walmart Analysis

This report provides a comparative analysis of the competitive strategies employed by Starbucks and Walmart. The Starbucks section delves into the company's use of the CAGE framework (Cultural, Administrative, Geographical, and Economic distances) to navigate international markets and maintain a strong brand presence, emphasizing the importance of cultural understanding and economic considerations in its global expansion. The analysis highlights how Starbucks adapts its strategies based on geographic and economic factors, especially regarding labor costs and transportation. The Walmart section examines the company's cross-docking operations and supply chain management, showcasing how these practices streamline logistics and reduce costs. The report discusses Walmart's focus on customer satisfaction through efficient inventory management, streamlined supply chains, and competitive pricing, highlighting how these strategies contribute to its market dominance. Both sections provide insights into the practical application of competitive strategy theories in real-world business scenarios.

Competitive Strategy
Theory & Models

Contents
Organization 1: Starbucks................................................................................................................1
Description...................................................................................................................................1
Application of the theories in Clips.............................................................................................1
Organization 2: Walmart.................................................................................................................2
Description...................................................................................................................................2
Application of the theories in Clips.............................................................................................3
References........................................................................................................................................5

Organization 1: Starbucks
Description
It has been seen that Starbucks is one of the best producer of the coffee beams and they serve the
best coffee products to its customers. The company has been able to maintain a high-class
customer service for all the people who come and take its taste. As per the views from
Ghemawat, we are following the CAGE framework which includes the Cultural, Administrative,
Geographical and the Economic standards to handle the different strategies of the company.
Here, the focus is mainly on how it is important for the company to work on the development
when compared to any of the local competitors.
Application of the theories in Clips
With the assessment of the CAGE theory, it is important to focus on the trading, capital and the
information flow where there are different languages and the ethnicities setup for the social
network. Ghemawat focus on the framework where the international strategies are mainly to
make the distance visible for the managers and pinpoint the differences which are set in and
around the countries. It is also easy to compare the markets with the perspective of how the
company is able to measure the distances in a defined manner. The emphasis is on the
dependence over the industry that affects the transportation cost and dealing with the heavy
products. (Ghemawat, 2001). Here, the brand is about how the geographic and the economic
standards are maintained under a centralized market with the approach of handling the coffee
product with applying less cost for the labor. The theory is based on the maintenance of
Starbucks and working over the management that needs to fulfill and check all the important
issues so that it is easy to meet and work with the management positions effectively. The

company should also work on relieving the long-term relations with the customers where there
are differences based on the transport costs and the importance is based on dealing with all the
different kinds of heavy and the bulky products. (Ghemawat, 2017). The cultural distance is for
the customer products and to check how the customers get affected by the preferences of the
product. Through this, there is also a major consideration for the consumer goods and the media
which will facilitate the quantitative analysis based on the CAGE framework. It is important for
the customers that CAGE allows the users to easily customize and work on the different forms of
Adding Value Scorecards with AAA strategies. With the number of researches, the identification
is significant about how the different observations like the power distances and the acceptance to
the hierarchical structure helps in maintaining the uncertainty and handling the markets with the
proximity of how the neighbors are able to work with venturing into the markets and portraying
different forms of the framework of CAGE perspective. (Ghemawat & Hout, 2016).
Organization 2: Walmart
Description
The chosen company is Walmart which is one of the famous grocery chain company that handles
the different demands of the customers for daily needs. The company focus on the strategy where
there is a cross dock business to work with the different segments of the U.S. Here, the financial
services are monitored and includes the money orders with easy transfer through the wire
transfer. The strategy of the company is to work on the customizations and bring a revolutionary
change in the world. (Enderer et al., 2017).

Application of the theories in Clips
The applications of the cross-dock operations are important for the logistics and the supply chain
management, where there is a continuous working and moving of the cargo from one transport
vehicle to the other. The practices are based on the operations where there is a proper utilization
of certain staging areas and to check how the materials are sorted. For this, the consolidated
forms of the outbound shipments are complete with streamlined supply chain management. The
well-planned approach of Walmart has been able to cover and create a better medium to maintain
the network resources with the research development methods. (Grangier et al., 2017). The
company works with the easy advertisements and how the campaigns are being attached to the
attention for working. The business concepts are related to how the customers cooperate and
work on the standardized forms of the operations. The logistics are defined to handle the
unloading of goods with proper storage and transportation. Walmart also focus on handling and
mining using the stock out range with reducing the leading time. The consistency is based on the
inflow and the outflow, where there are supply chain management to deal with the delay in the
processes. The multiple segments for the store handling is to work with the daily pricing
standards and geographic development that is to enter into the market and set the proper costs for
the high volume and increased satisfaction of the customers. The streamlined approach is to
work on the origin to point of sale, with the reduced labor cost and less inventory handling. The
products tend to reach the distributor with the customer working on it in a faster manner. This
will also reduce or eliminate the cost of the warehousing that increase with the available retail
sales space. (Nassief & Contreras, 2016). The potential is mainly based on handling all the
important storage with the computerized forms of the loading of the logistics so that it is easy to
manage the products damage. The labor costs are incurred with the moving and then shipping of

the stocks. The arrangements through the use of cross dock model helps in delivering the product
to different locations with the consolidated forms of the arrangements with which is combined
with the economy of transport.