Strategic Management Report: Walmart's Recovery Plan and Analysis

This report provides a comprehensive strategic analysis of Walmart's recovery plan, addressing the company's declining sales and market share. It begins with an introduction highlighting the importance of strategic application in the current competitive market and the need for a recovery plan for Walmart, which is facing challenges due to loss. The report then delves into a situation analysis, assessing Walmart's strengths, weaknesses, and the competitive landscape, including the impact of increased competition and supplier trust issues. It explores various strategic models such as distributor and wholesaler considerations, market entry strategies (strategic alliance, joint venture, franchise), rebranding, product differentiation, price skimming, and the Ansoff matrix. The report recommends rebranding and product differentiation strategies, emphasizing the benefits of creating a new corporate image, improving sales, and attracting customers. It also suggests leveraging technological advancements and enhancing website design. Overall, the report aims to provide insights into Walmart's challenges and offers strategic recommendations for improvement and sustainable development.

Strategic Management
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
APPLICATION OF RECOVERY PLAN.......................................................................................3
Situation Analysis........................................................................................................................3
Models ........................................................................................................................................4
Recommendation.........................................................................................................................6
Implementation............................................................................................................................8
Limitation.....................................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11
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INTRODUCTION
In current market scenario, the organisations are facing high ratio of competition so it is
significant for businesses to have consideration of strategic application. Businesses are also well
focused towards development of diverse strategies that can provide better opportunities in the
market. It has also been noticed that the strategic application is considered as a process in which
organisations ensure about diverse operational activities by having implication of strategies
(Yousif and Hassan, 2013). However, several company gets succeed in this approach but some
fails to do so and therefore they has to compensate it with low or no profit along with substantial
decline in market share.
In present report prepared for identifying and critically analyzes the fundamental issues
related to strategic management. In addition to this, recovery plan is considered as critical factor
for Walmart because company is facing issues in regard to loss. It has been noticed that the
Walmart is having decline in its sales volume that also decreases its market share. It is also one
of key reason that the organisation is closing 269 underperforming stores in international market.
Organisation is operating business in retail sector but due to high ratio of competition Walmart is
facing issues regarding loss. This report will critically analyse the reasons behind loss and
recommend strategic ways to overcome issue in appropriate manner.
APPLICATION OF RECOVERY PLAN
Situation Analysis
In order to have effective designing of recovery plan it is significant to understand current
market conditions and performance aspects in appropriate manner. It facilitates in effective
designing of strategic activities that may lead business to better success. Walmart is operating its
business in diverse nations that means company is having better brand awareness in the market
(Maley, 2011). It can be considered as one of key strength of organisation which provide benefits
in competitive market. It has been noticed that the company is focused towards development of
core competences by having involvement of information technology. It is considered as
significant factor in order to have better logistic system at international level. Human resource
development is also considered as critical factor that enhances the skills of employees
(Wickramasinghe and Jayaweera, 2011). It also helps business firm to maintain the retention rate
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and ensure that key factors in regard to HR are well maintained. Company has its store in diverse
market that enhances its opportunities.
However, in recent years it has been noticed that the Walmart is facing critical issue in
regard to loss because it sales is decreasing. It has been noticed that the organisation is offering
products that belongs to many sectors which has decreased the flexibility of activities.
Competition level in recent years has also increased in recent years that has also impacted
business in negative manner (Hui and Tsang, 2014). It indicates that it is significant for Walmart
to focus on competitors performance in order to make sure that they are having effective
designing of strategies. Walmart is also losing trust on its suppliers that also influences its
productivity. In order to overcome such kinds of issues the business firm can focus on number of
strategic applications that may provide strength (Jones, 2008). For example, strategic alliance in
global retail market may enhance business opportunities. Company can also focus developing
nations to have better business expansion and ensure that the organisation is attaining profit.
Competition from local and global level organisations is one of key threat that impacts the
business and success of Walmart. Political problems in different nations also influences the work
performance and create critical issue for organisation (Palepu, 2010).
Models
As per the detailed study, there are number of models and strategies that can be adopted
by business organisation in order to meet goals and objectives. By having effective focus on key
principles of retailer business model the Walmart can ensure about growth opportunities. In this
respect, it is significant for business firm to have proper understanding in regard to distributor
and wholesaler (Stonehouse and Houston, 2013). It will boost the success ratio of organisation
and ensure that the issue regarding supply chain be improved so that profit ratio can be boosted.
It has been noticed that the Walmart can also focus on business expansion in diverse
nations so that business opportunities can be boosted. In this respect, market entry strategies can
be considered as key aspect because it allows to have expansion in appropriate manner.
Classification of market entry strategies can be as strategic alliance, joint venture, franchise, etc
(Corey and Deitch, 2011). By having effective consideration of these aspects the company can
easily ensure that they are having business expansion in most desired way which will enhance
sales and profit. It will also have positive impact on the market share which may boost further
opportunities. In strategic alliance company can focus on mutual agreement in which Walmart
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will have working in collective manner with another business firm. Joint venture allows to have
collective working agreements between organisations that is mostly used while entering in new
market (Järveläinen, 2013).
Walmart can also focus on re-branding strategies and further business strategies in order
to boost opportunities and ensure that the issues can be overcome in desired manner. By having
improved focus on re-branding strategy the business entity can target its customers in innovative
way which may increase its sales. Rebranding is considered as strategy in which company
focuses on redesigning of name, term, symbol, design and combination (Ochs, G., 2012). It
helps in present business in new form so that customers can get attracted which may boost
effectiveness. It is significant for business entity to make sure that the goals and objectives are
being accomplished by designing activities in innovative manner. It is also necessary for
organisation to make sure that the communication with customers is product differentiation
strategy can also help a company build brand loyalty effective so that better brand awareness can
be created in the market (Rose and Krausmann, 2013).
Other than this, the product differentiation strategy and price skimming strategy is also
beneficial that can be adopted by management of Walmart in order to make sure that the goals
and objectives is being accomplished. In product differentiation strategy the business entity may
focus on development of products and services by considering differentiation and innovation as
critical aspect. In this number of products and services can be introduced in market by
considering differentiation strategies (Sadgrove, 2016). Along with this, competitive advantage
can be attained by business entity in order to make sure that the goals and objectives are being
accomplished effectively. Product differentiation strategy can also help a company build brand
loyalty which is also beneficial to have improvement in business opportunities. It may also
enhance the sales and ensure that the issues are being overcome in appropriate manner.
Price skimming strategy is considered as key aspect that may also enhance opportunities
for organisation. It allows to improve focus on premium products so that prices can be designed
in such manner that it may meet key standards (Yousif and Hassan, 2013). By having improved
focus on price skimming strategy the organisations can have quick recovery of its production and
advertising cost. It means the loss can also be managed in appropriate manner so that goals and
objectives can be meet effectively.
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Other than this, Ansoff matrix is also referred as key objective that may enhance
opportunities for key goals and objectives. It is considered as tool that can be used to manage
risk ensure that business is having impressive level of success. Classification of matrix can be as
market development, diversification, market penetration and product development. In market
penetration the business firm is focused towards development of new market so that business
opportunities can be boosted (Maley, 2011). To attract more customers towards business it is one
of most essential factor. In this respect, the loyalty scheme can also be adopted by business entity
in order to make sure that the goals and objectives is being accomplished. Product development
means the management can focus on activities that extend product by having effective
development of diverse variants. Redesign of packing and introducing new features in product
may be considered as significant aspect in order to meet the standards of product development
(Wickramasinghe and Jayaweera, 2011). Market development is also referred as key aspect that
may allow business firm to focus on different geographical market so that goals and objectives
can be accomplished effectively. In order to have better opportunities in the market the situation
analysis need to be consider effectively by management. Diversification means presenting
business in unique form so that issues can be overcome. In this, management of Walmart may
focus on bringing differentiation in products and services so that goals and objectives can be
accomplished (Hui and Tsang, 2014).
Recommendation
It has been noticed that in order to overcome issues and improve opportunities for
business firm the management can consider rebranding and product differentiation strategy. With
an assistance of this, the business entity may have sustainable development so that goals and
objectives can be accomplished. By having effective development of rebranding strategy the
business firm can improve its sales (Jones, 2008). In other aspect, company can focus on
activities that may change the corporate image of company so that issues can be overcome in
appropriate manner. Rebranding is process that allows to design new image of products and
services within market so that goals and objectives can be accomplished effectively (Palepu,
2010).
There are number of benefits that business firm can attain by having improved focus on
key re-branding. Issue in regard to non-financial growth can be overcome, because it creates
better image in the market that attracts customers to purchase products and services in
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appropriate manner. It also helps in advancing the market share that may also lead business to
impressive level of success (Stonehouse and Houston, 2013). The company can share its fixed
costs over many products which means the Walmart can attain cheap places for its store. It will
cut down the cost of operation and lead improve the performance of underperforming stores. By
having proper re-branding consideration the management can present business in different
manner as compared to other competitors in the market (Corey and Deitch, 2011). It indicates
that the goals and objectives can be meet by ensuring that the business is being reflected in
market in unique manner. Along with this, the technological advances can also be considered by
organisations so that overall performance of existing stores can be boost. It will also assist in key
development of business and ensure that the business is having better sales in the competitive
market. Advances in technology may mean that, business operates in a very different way to
when it first set out. Management of Walmart can also have better designing of website so that
more customers can be attracted (Järveläinen, 2013). It also allows to have business expansion in
appropriate manner by having focus on new demographic aspects. It provides better chance to
interact with new segment so that competitive advantage can be gained. It also allows
management to have great reflection of goals and objectives so that business opportunities can be
enhanced.
Other than this, the product differentiation also provides diverse benefits to the
organisation because it helps in meeting key goals and objectives. By having improved focus on
product differentiation the management of Walmart can easily create better values which is
beneficial to meet goals and objectives. Differentiation create better values in product and
services that attract more customers and motivate them to have better sales. It means the issue of
underperformance can be overcome effectively (Ochs, G., 2012). It also allows business firm to
have non-price competition which is beneficial for long term success. Quality of services can
also be improved under this which is also advantageous for better opportunities in the
competitive market. A successful product differentiation strategy creates brand loyalty among
customers. The same strategy that gains market share through perceived quality or cost savings
may create loyalty from consumers (Rose and Krausmann, 2013). It indicates tat the better
values can be provided to customers which is beneficial to have advancement in customer
satisfaction. It is significant for management to have better satisfaction level so that overall
performance of stores can be improved.
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Implementation
In order to have effective implementation of re-branding strategy, it is necessary for
management of Walmart to have focus on identification of customer perception towards brand. It
is significant because re-branding mainly focusing in recreation of brand image that may lead
business to impressive level of success (Sadgrove, 2016). Market conditions also need to be
analysed in appropriate manner so that it can be noticed that what kind of key parameters need to
be developed by organisation. Innovation model also need to be referred in significant aspect in
order to ensure that the re-branding strategy is being designed in appropriate manner.
For better implementation of re-branding, it is necessary for management to focus on
restructure of brand logo so that better brand image can be reflected. Selection of colour
combination and design must be according to key aspects so that better presented can be
reflected (Karlan and Valdivia, 2011). It is significant for management to make sure that the
brand logo must be innovative and eye catchy so that more and more customer’s can be attracted
towards it. Marketing concept can also be considered effectively by the management to have
better designing of strategies so that goals and objectives can meet in desired manner.
In order to provide support to the re-branding strategies the business entity need to make
sure that the product differentiation strategy is also being adopted by firm. By having effective
differentiation strategy the quality of products and services can be improved. These kinds of
aspects will add on the values to the organisation (Burtles, 2016). If business is offering better
services to the customers then more and more customers will get attracted towards it in
appropriate manner. For better implementation of differentiation strategy the market conditions
need to be analysed in appropriate manner. It is because the changes in product and services
must be according to customer needs (Segar, Eccles and Richardson, 2011).
If business is not having changes in significant manner then it will affect the overall
development. It is also necessary for management of Walmart to make sure that the uniqueness
within operational activities is being considered effectively so that issues can be resolved in
desired manner. Innovation in products and services is necessary to meet key standards of
differentiation (Grabel, 2015). For example, the company can start packing of products using
recycling process so that environmental aspects can be well maintained. It will enhance the brand
image and ensure that the differentiation is being considered effectively by the management. It is
beneficial to enhance performance and lead business to impressive level of success.
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Limitation
There are number of disadvantages of using product differentiation strategy which can be
referred as limitation of strategy. Use of product differentiation strategy is expensive that may
enhance the operational cost. In current market, Walmart is facing issues in regard to decrease in
sales that means the profit ratio has also decreased. These kinds of aspects may affect the overall
business because of lack of availability of financial sources (Amujo and Otubanjo, 2012). It is
significant for management to make sure that the issues must be resolved by ensuring about
alternative ways that can provide better finance. Product differentiation may hinder the market
entry so management of Walmart need to consider it in appropriate manner. It is one of critical
task for organisations to frame new market entry strategy because there are various barriers
(Ochs, G., 2012). If product differentiation is impacting need and perception of loyal customers
in negative manner then it can also be another critical issue for organisation. It means it is
necessary for management to make sure that product features are being changed as per existing
customer needs as well as potential market perception. It will lead business to impressive level of
success and help in overcome such limitation (Sadgrove, 2016).
On the other side, the limitation of re-branding can be it cover few negative attribute that
may affect business in diverse manner. If re-branding factors are not considered effectively by
the management then it might affect the business in diverse manner (Rose and Krausmann,
2013). Brand image may be impacted because of improper consideration of re-branding.
Moreover, it is critical task for the organisation because it is difficult to percept that what will be
liked by the customers.
CONCLUSION
As per the above study, it can be concluded that the strategic applications are considered
by businesses as significant aspect. It is because it helps in creating new opportunities and ensure
that work is well managed to meet goals and objectives. In order to provide better competition to
the competitors the businesses need to consider strategic applications as critical aspect. It has
been noticed that the Walmart is facing critical issue in the market in regard to loss. It is one of
key reason that the sales is being decreased which forces management to shut down
underperforming stores. It has been noticed that the organisation is offering products that belongs
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to many sectors which has decreased the flexibility of activities. Competition level in recent
years has also increased in recent years that has also impacted business in negative manner.
In order to overcome such kinds of issues, it has been recommended in the report that the
company need to change strategic implications. By considering product differentiation better
values can be created. It is beneficial to attract more customers and ensure that the sales is being
improved. It also helps in brand image advancement which is beneficial to meet goals and
objectives so that business can have impressive level of success. Re-branding is also
advantageous that may assist management of Walmart to have sustainable improvement. With an
assistance of this, the issues can be resolved in order to meet goals and objectives.
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