- QUESTION
Wal-Mart Case Study
After reading the Way-Mart Case from our textbook, respond to the following prompts in one to four sentences:
Based on the information in the case (and as of the case’s date, 2013)
Does Walmart have a competitive advantage?
Temporary CA?
Sustainable CA?
What changes could be made to develop CA and/or create more sustainable CA?
Are there resources Walmart or its competitors control that are key to CA?
Financial, Physical, Human, and Organizational?
Temporary CA?
Sustainable CA (VRIO)?
How has Walmart's history shaped its capabilities/resource bundles (Financial, Physical, Human, and Organizational)
How does Walmart's internal environment drive its strategic and tactical decisions at the organizational and divisional levels (as highlighted in the case)?
Which of Walmart's capabilities/resources are most important for effective international expansion?
What adjustments should Walmart make in altering/acquiring capabilities/resources for particular foreign markets (dependent on the differing strategy/tactics it should deploy in these markets)?
| Subject | Business | Pages | 2 | Style | APA |
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Answer
This case study examines the competitive advantage (CA), sustainability, and environmental forces that impact the company’s growth.
Walmart has a temporary competitive advantage which is based on stakeholder relationship, products value, profound distribution, and the adoption of advanced technology. The temporary CA is based on the company’s competitors exploring other and diverse options on how to challenge Walmart’s dominance. Besides, the company is under criticism for issues such as employee relations.
Changes that Walmart needs to ensure sustainable competitive advantage include maintaining technology and innovation in its services and product value, examine its pitfalls and develop mitigation strategies to its challenges including international entry. Also, the company needs to focus on enhancing its relationship with its employees.
Walmart has control over organizational and human resources which are the foundation of its competitive advantage. Since the organization inception, Walmart’s culture has focused on enhancing the relationship with its stakeholders including suppliers. Organizational resources are reflected in the company’s objective to have effective distribution networks such as the High-Velocity Distribution Centers in 2006. Human resources, on the other hand, are reflected in the organization’s workforce strategies over the years including regional managers visiting the stores every week from Monday to Thursday and having regular meetings between the employees and managers to examine recent progress and develop improvement strategies.
Walmart’s history is the foundation of its resource/capabilities bundles which has been achieved through dynamism in its strategies, addressing its challenges, and maintaining a competitive advantage. High-value products and services are the foundation of Walmart’s sustainable and high market share which translates to financial achievement. The organization has also built on its culture over the years although there have been challenges with regards to its employment practices which are criticized for low wages and negative externalities.
Walmart’s internal environment and divisional strategy have shifted to having regional offices where the managers visit the stores routinely and meet with other employees and managers to discuss the current and future strategies.
For international expansion, Walmart’s primary capabilities and resources are the quick implementation of its decisions and aggressiveness. Walmart applies this strategy across all countries which is sufficient to respond to competition in the foreign markets.
Besides a sustainable and aggressive entry strategy to new global markets, Walmart needs to reconsider other options such as franchising, acquisitions, and joint ventures. These approaches coupled with value in product and services will enhance its penetration in international markets.
References
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Hesterly, B., & Barney, J. (2015). Strategic management and competitive advantage. Case 1-3: Walmart Stores, Inc., in 2013. England: Pearson Prentice Hall. |