Strategic Analysis: Corporate Strategies of Walmart and Amazon

This report provides a comparative analysis of the corporate-level and diversification strategies employed by Walmart and Amazon. It begins with an introduction to both companies, highlighting their founding and evolution. The report delves into strategic management, defining its key components and the importance of adapting to business environment changes. It then examines Walmart's strategic management styles, including value chain analysis, public relations, and single business strategies. The report further explores Amazon's strategic approach, characterizing it as concentrated broadening and emphasizing its cost leadership and customer-centric model, using the Ansoff matrix for illustration. The diversification strategies of both companies are then discussed, showcasing the diverse subsidiaries and services offered by Walmart and Amazon's expansion into various product categories. The report concludes by referencing key sources that support the analysis, providing a comprehensive overview of the strategic approaches of these two retail giants.

Assessing corporate-level and diversification strategies of Walmart and Amazon

Introduction
Walmart is an American corporation founded in 1962 by Sam Walton. It supplies its shop's low-
priced goods to assist its clients to save when shopping. It has developed into one of the finest
physical shops in many areas of the world. Amazon is the greatest online retail shop founded in
1994. The firm started as a librarian and has now grown to offer movies, music and blue rays.
Since Amazon began stalking goods like Walmart, both shops fought in the market share. The
emphasis of this article is on Amazon and Walmart firms about their corporate level and
diversification strategies.
What is strategic management?
Key administration comprises of the constant arranging, checking, investigation, and assessment
of the multitude of prerequisites an organization needs to accomplish its points and targets.
Changes in business settings request organizations to constantly assess their prosperity
techniques. The essential administration measure empowers organizations to survey their present
position, draw up plans, to execute them, and to assess the achievement of the administration
techniques received. Strategic management strategies consist of five key tactics and may vary
based on the context in their execution. Strategic management applies to both mobile and on-site
platforms (Velikorossov et al, 2020).
Strategic management styles and corporate strategy of Walmart
Value Chain Analysis –
Porter value chain analysis is a systematic method for business operations created by Michael E
Porter of Harvard Company School to provide the business process as a whole with sustainable
value and competitive advantage. Walmart is the market leader in its approach to cost
management. Walmart's value chain analysis covers the product idea and raw material chain,
sales & marketing, and customer service (Mazouni, 2018). These operations are also categorized
as main and supporting activities that enable suppliers to cooperate to provide their consumer’s
products whenever they want, at appropriate prices and so support the label "Save Money, Live
Better."

1. Primary activities
 Inbound logistics
 Operations
 Outbound logistics
 Marketing and sales
 Services
2. Supporting activities
 Firm Infrastructure
 Human Resource Management
 Technology Development
 Procurement
Wal-Mart has a variety of corporate strategies, including a single strategy for business and public
relations. This company's public relations strategy is essential for its long-term success since it
provides space for growth in other industries as well as in other nations. This approach allows
the organization, via financial assistance, to collaborate with politicians who help it accomplish
its fixed objectives (Song et al, 2018).
There are numerous reasons why the management of Wal-Mart Inc. makes this a smart option.
By following the strategy of public affairs, this company is compelled to concentrate on
customer happiness and to engage in other community activities to help it acquire a good
reputation. Today, people become more aware and supportive of enterprises that assist to make
society better than of individuals who are trying to destroy it. People will thus feel as if buying at
Wal-Mart Inc. is an indirect chance to contribute to the good improvements that the company

will afterwards improve. In addition, it is less probable that the business is sued by
environmentalists and activists who want to defend the environment and human rights. This is
because the company is focused on productive elements that guarantee profit over the long term.
Strategic management styles and corporate strategy of Amazon
The overall business system of Amazon might be described as concentrated broadening. This
system expands upon the mechanical capability of effective undertakings and an expense the
board procedure to furnish clients with most extreme worth at the least cost, as well as folding
their business over the clients where Amazon is the best entrance for their web based shopping
necessities (Wu et al, 2018).
Surely, this methodology has shown its value by turning into the world's greatest online vendor
and a forerunner in the business areas wherein it works. Having said that, cost authority might be
seen by the lower returns rule where organizations who seek after this methodology find that
they can presently don't keep up with development or further develop productivity after the "easy
picking" is picked.
Proceeding with the subject, Amazon's overall business procedure might be portrayed utilizing
the Ansoff framework pictorially portrayed in the above picture. Amazon's all out cost authority
is the way to understanding its whole system and its unrelenting accentuation on costs.

The particular estimates Amazon is taking in quest for this procedure incorporate high prizes for
normal individuals through the Amazon Prime program, opportune, even speedy conveyance and
sporadically the scratch-off of the delivery charges, the upsides of keeping away from client
government assessments and lessening costs even further, and an overall technique to get the
client to look at this system (Li et al, 2020).
Other than that, Amazon's essential methodology is driven by its upper hand sources by zeroing
in on innovation, refreshing the benefits of economies of scale and capitalizing on the
proficiency of the cooperative energies between its outside drivers and inner assets are at the
core of its plan of action. Likewise, Amazon uses Big Data Analytics to follow the conduct of
customers. The business has received Big Data so much that it is presently ready to sell this as
another assistance item.
Diversification strategy of Walmart
Walmart is one of the world's most assorted undertakings. Numerous Walmart auxiliaries offer
various products. Models incorporate Walmart, which focuses on food, Walmart.com as the
organization's online business extremity, Walmart, which basically offer business items and
Sam's club as a discount chief. Walmart International stretches out from Argentina to Zambia. In
excess of 6000 global units exist. Walmart Logistics, Walmart Realty and Walmart Portrait
Studio are likewise accessible.
The services offered by Walmart are also extremely varied in a given area. Tyre and lube, optical
services, foodstuffs, commodities, furnishings, jewellery, and pharmaceutical services may be
part of this service. Some sites also sell petrol. This diversification is one of the reasons why the
business remains on the 500th list of fortunes. It makes Walmart the all-inclusive resource,
where shoppers discover what they need at rates that they can manage. Shopping at Walmart is
very convenient for most buyers. The cause is corporate diversification.
Diversification strategy of Amazon
Amazon.com was launched as a bookselling website and Jeff expanded into some sectors with
success. Now they sell mobile phones, motor replacement parts, electrical products, medications,
cosmetic products and clothes, etc. The most popular model used to analyze the strategic path an

organization may take is the Ansoff Matrix. This model provides a good insight into Amazon dot
com's diversification strategy (Jelassi et al, 2020).
Increased market share for current markets using existing goods under market penetration
businesses. Amazon has implemented a variety of market penetration methods, which require
time to explain everything. According to my view, the key approach is "Offer to give donations
to advertise goods at special events." Amazon can greatly enhance its current market here. Say if
a person buys a high-fit setup in the Amazon charisma season gives him/her five music or video
CDs free of charge. This encourages Amazon dot com's online customers and they tend to buy
more products and services.
Reference
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Song, X. (2018, June). A study on management model of human resources in multinational
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Conference on Sports, Arts, Education and Management Engineering.
Wu, X., & Gereffi, G. (2018). Amazon and Alibaba: Internet governance, business models, and
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