The Goal Of Conducting A Competitor Analysis Is To Gather Information
The goal of conducting a competitor analysis is to gather information about the company’s competitors and systematically formulate a strategy to become the market leader in the industry. In formulating any strategy, it is imperative that the company understand its organizational structure as well as the internal and external forces which could impact their strategic decisions. Based on the company you chose in the previous module (WALMART), analyze the organization’s mission, vision, and values, its ability to compete, and the effectiveness of its management team in executing strategy. Some of the factors to be considered in doing this evaluation include the company’s internal resource capabilities, its relative cost position, and its competitive strength.
In addition, evaluate the competitive strategy of your selected organization and examine how this strategic approach drives the rest of the strategic actions the company undertakes in terms of product line, production emphasis, marketing emphasis, and the means for sustaining the strategy. Make sure to include at least one analytical tool such as SWOT analysis, Porter’s, BCG, etc., in your analysis. Research your selected organization’s strategy and analyze the following elements: The organization’s mission, vision, and values. What does it tell you about the company, their culture, their direction? Does it convey the purpose and primary objectives of the company? If so, how; if not, what is missing?
The organization’s strategic goals. Based on your research, what are the top three strategic goals of your chosen company? The relative alignment of strategic goals with the organization’s mission, vision, and values. Include at least three examples of how the strategic goals help and/or hinder the organization in achieving its mission, vision, and values.
Additions or changes you would recommend to the strategic goals to better achieve the company’s mission, vision, and values. Include at least two additions or changes and justify your response. Describe the relevant external factors and influences (at least 3) which could affect the decisions the company makes about its direction, objectives, strategy, and business model. Describe the internal factors and influences (at least 3) which could impact the company’s decision-making, such as the company’s market position, competencies, capabilities, resource strengths, weaknesses, and competitiveness.
Does your selected organization have a focused strategy that differentiates it from other companies in the same marketplace? Explain your answer. Is the organization seeking a competitive advantage by taking the initiative in the marketplace? Explain your answer. Does the organization have a strategy for competing in
international markets? Does it appear to have a solid understanding of local customer needs and preferences to create customized products or services? Does it know how to transfer company expertise to initiate actions to compete internationally?
Make sure you utilize at least one analytical tool in your analysis of this section. Write up your findings in a 6 to 8 page MS Word format paper which complies with APA standards, including proper grammar and spelling. Include at least three scholarly resources in your report.
Paper For Above instruction
The comprehensive analysis of Walmart’s strategic positioning involves examining its mission, vision, and values to understand its foundational objectives and organizational culture. Founded in 1962 by Sam Walton, Walmart’s mission is "to save people money so they can live better," a statement reflecting its commitment to cost leadership and customer value (Walmart, 2023). Its vision emphasizes becoming the premier retailer globally by providing low prices and excellent customer service. These guiding statements highlight Walmart’s primary focus on affordability and accessibility, shaping its operational priorities and corporate culture centered on efficiency, broad reach, and cost-consciousness (Cai, 2020).
Strategic goals at Walmart are aligned with its mission and vision, primarily focusing on expanding geographic reach, increasing market share in existing markets, and enhancing e-commerce capabilities.
The top three strategic goals include: 1) expanding online shopping platforms, 2) advancing supply chain efficiency through technology, and 3) expanding international operations. These goals support Walmart’s overarching aim of market dominance and customer-centric service but may also hinder flexibility if overemphasized, potentially reducing focus on local market nuances.
The internal capabilities that bolster Walmart’s strategic efforts include its extensive supply chain infrastructure, economies of scale, and technological innovation in logistics. Its resources afford a significant cost advantage, maintaining its competitive edge over rivals like Amazon and Target (Hitt, Ireland, & Hoskisson, 2020). However, weaknesses such as public perception issues regarding labor practices and competition from specialized retailers pose ongoing challenges. The company’s resource strengths enable it to sustain low prices but demand continuous innovation to navigate competitive pressures.
External factors influencing Walmart’s strategy include globalization, technological advances in retail, and changing consumer preferences for online shopping. For instance, the rise of e-commerce demands that
Walmart enhance its digital presence and logistics networks to meet consumer expectations. Regulatory environments, such as tariffs and trade policies, also impact decisions related to international expansion (Chiu, 2021).
Internally, Walmart’s market dominance is driven by its vast scale, efficient logistics system, and diversified product offerings. Its capabilities in data analytics facilitate targeted marketing and inventory management, supporting its competitive stance (Bryan & Lilien, 2022). However, challenges remain in adapting to local cultures, especially in international markets where consumer preferences vary significantly. Internal weaknesses include limited agility in responding to rapid market shifts and reputational risks associated with labor practices.
Walmart’s strategy is largely focused on cost leadership, which is clear from its sustained efforts to minimize costs across its supply chain, store operations, and e-commerce platforms. This focus naturally differentiates it from competitors that may prioritize differentiation through product uniqueness or premium services. Walmart seeks to achieve a competitive advantage by continuously pioneering in retail innovation, especially in online commerce and logistics technology (Friedman, 2022). The company’s aggressive international expansion efforts, notably in countries like China and Mexico, exemplify its ambition to establish a global footprint, often tailoring offerings to local needs.
Regarding international strategy, Walmart demonstrates an understanding of diverse consumer preferences, adapting its product assortment and service models accordingly. For example, in India, Walmart invests in wholesale and e-commerce models tailored to emerging middle-class consumers, reflecting a recognition of local market nuances (Singh & Kaur, 2021). Transfer of company expertise occurs through strategic partnerships and local sourcing initiatives, enabling Walmart to compete effectively in foreign markets while leveraging its core competencies.
Utilizing analytical tools like SWOT analysis reveals Walmart’s strengths in supply chain efficiency, economies of scale, and brand recognition, while weaknesses include reputational issues and limited flexibility. Opportunities include expanding e-commerce and international markets, but threats such as intense competition from Amazon and regional retailers require strategic vigilance (Ghemawat, 2018). A focused differentiation strategy centered on cost leadership effectively secures Walmart’s position as a global retail leader, although continuous innovation remains necessary to sustain its competitive advantage.
In conclusion, Walmart’s strategic approach underscores its commitment to cost leadership while adapting to evolving external and internal factors. Its mission and vision direct its strategic goals, which in turn influence operational decisions. Understanding and addressing both internal capabilities and external influences will be critical for Walmart to maintain its competitive edge and achieve sustainable growth in the global marketplace.
References
Bryan, L. L., & Lilien, G. L. (2022). Retail innovation and competitive strategy. Journal of Business Strategy, 43(2), 45-56.
Chiu, R. (2021). International trade policies and their impact on global retailers. Global Economics Review, 30(4), 112-130.
Cai, J. (2020). Corporate culture and strategic management in retail giants. International Journal of Retail & Distribution Management, 48(3), 243-259.
Friedman, J. (2022). Digital transformation in retail: The Walmart case. Journal of Business & Technology, 15(1), 78-89.
Ghemawat, P. (2018). Redefining global competition: Strategy, structure, and execution. Harvard Business Review, 96(5), 52-60.
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2020). Strategic Management: Competitiveness & Globalization. Cengage Learning.
Singh, P., & Kaur, R. (2021). Market adaptation strategies of Walmart in India. International Journal of Business and Management, 16(7), 50-62.
Walmart. (2023). About us. Retrieved from https://corporate.walmart.com/about-us