Table of Contents
1.0 Author name and title of the article.
2.0 Background information.
3.0 Summary of the business case.
- Embrace the Future (and the Future is Voice-Activated).
- Make Targeted, Tuck-in Acquisitions.
- Rethink the Org Chart
- Leverage Existing Assets.
- Empower Employees.
4.0 Use of theory, models and concept
4.1 Porter’s generic strategies.
4.2 Mixing the power of strategy.
Competitive dynamics and timing strategic moves.
Scope of operation.
4.3 Blue Ocean Strategy.
4.4 New base of competitive advantages.
4.5 Strategic Alliance.
5.0 Major finding.
1.0 Author name and title of the article
The author name of this article is Andrew Nusca. The title of the article is “5 Moves Walmart Is Making to Compete with Amazon and Target”
2.0 Background information
Walmart Inc is a globally recognized retailer. This is a US-based company. This firm offers several types of services like hypermarkets services, discount department stores, and grocery stores. It is situated in Bentonville, Arkansas. The founder of the firm was Sam Walton in 1962. At present; this company has spread its operation in several countries approximately 27 countries. The number of stores is also increasing day by day and now it has approximately 11,503 stores (Walmart, 2019). In the USA, Canada and Mexico, this firm is called Walmart; Asda is called in the United Kingdom. This company is also operating its business functions in Asian countries like India. This company is also well known for its brand image as well as the revenue level. In 2018; this company has gotten a huge amount of profit nearly US$514.405 billion (Walmart Annual report, 2018). This company also plays an important role in reducing the unemployment problem because this firm has 2.2 million staff throughout the world. This firm is referred to as a family-owned company because the family members are maintained the whole organization.
This company was listed on NYSE in the year 1972. In 1988, this film got the highest profits and got the largest company ranking in 1989 (Walmart, 2019). Wal-Mart has fewer stores in the South and lower Midwest but the number of stores is growing rapidly in this section. In New Jersey; Walmart launched the club in 1989 and in 1990. The first shop in the Northeast was established in the year 1990. Walmart has increased its business area by launching subsidiaries in several countries like Canada, UK, Central America, South America and China. In some countries, Walmart performs better some are not (Walmart, 2019). Walmart is also operating e-commerce to ensure a greater position in the market. The marketing and pricing approach is also very effective for Walmart because the competition level in the market is very high (Walmart, 2019). Amazon is one of the best competitors for Walmart and they are the main market leader in the national and global market. The other challenges factors also affect the business operations of Walmart. Therefore; Walmart has to perform several research and development plans for establishing the market image and overcome the challenges due to establish a competitive position in the market.
3.0 Summary of the business case
Walmart gains competitive advantages mainly in five different ways. First, it embraces the Future (and the Future is Voice-Activated). The competitors of Walmart are very much straightforward with the future changes in the dynamic business world. Especially; Amazon has run its e-commerce facilities with voice-activated. For this reason; Wal-Mart has also created a plan to activate the voice and audio system in the system. In the customer’s services and feedback; Echo smart devices are used by Walmart. Second, it marketed tuck-in acquisitions. Walmart has to merge with several eCommerce leaders in the market like Bonobos, Moosejaw, ShoeBuy, and ModCloth. The merger has a significant synergy effect on the eCommerce business of Walmart. In the future; Walmart will target favorable e-commerce sits and businesses and acquisition the sites and businesses for long-term growth.
An organization chart is a very important factor for the growth of a business. Therefore; Walmart has to rethink the chart of the organization for providing better customer services throughout the world. The up to bottom-line managers’ chart of Walmart are setting effectively to manage the overall activities of the business firm. Forth, it leverages existing assets. Leverage has a magnified effect on Walmart. Walmart has 5,000 stores in the only U.S. It has revealed that physical infrastructure has a great impact on achieving digital growth. Walmart can be able to do leverage around 4,600 stores around the U.S. that are within 10 miles of 90% of the population. In addition; Walmart can do leverage existing assets due to gain a magnified positive impact. Fifth, It is very necessary to provide empower to the employees to motivate the employees. Walmart has to provide enough power to the employees due get the best effort from them. The best effort of the employees helps to attain the ultimate target of the eCommerce business of Walmart (Nusca, 2017).
4.0 Use of theory, models and concept
4.1 Porter’s generic strategies
According to porter’s strategy; the best cost provider strategy considers four factors including overall low-cost strategy, broad differentiation strategy, focused low cost and differentiation strategy (Johnson et al., 2015). The following figure represents the strategy:
In the case of low-cost strategy; a business firm is always giving concentration on the reduction on the cost, not the price (Ferguson, 2018). The production factors efficiency is required to keep low the cost. In this section, a firm’s target market concerns a broad cross-section of buyers. On the other hand; the focused low-cost strategy concludes that a firm’s target market concerns a narrow segment of buyers. Johnson et al. (2015) stated that the differentiation strategy indicates that the extraordinary and flexible features of a product at which customers can easily buy it at a higher price. Broad differentiation strategy concentrates on the differentiation of products and markets with a broad cross-section of buyers. Besides; the focused differentiation strategy differentiates the product and market with the broad cross-section of buyers……………………..