Business 312 - A2 - Copy

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American InterContinental University *

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312

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Business

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Feb 20, 2024

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Travis Lexvold Study.com Business 312

Determine Walmarts competitive difference in the marketplace. In the current market situation, where there is great competition between companies, to be successful, companies must implement an approach that will enable them to stay in the market and develop. Among the strategies used by Walmart, one of the world's largest retail giants, the most effective include an innovative approach to introducing new products to the market, giving consumers 100% confidence in product choices, and preventing excessive purchases as a problem with the business process. For this research paper to fulfill its objective of identifying Walmart's differences from competitors in the market by analyzing their strategy, market positioning, and product positioning, we have developed specific objectives, including hypothesis testing where necessary, to help us effectively collect the required data. Many sources are easy to find because they are widely published and available, they will be helpful in providing information. We will focus on understanding whether Walmart emphasizes cost, quality, flexibility, speed, innovation, or service and how these strategies impact its competition. By examining these aspects, we can better understand how Walmart's competitive differences influence its success in the retail industry. Are they focused on cost, quality, flexibility, speed, innovation, and/or service? Explain how. Different retailers have different priorities in their business operations. Independent drugstores, for example, focus on providing high-quality services because this is a competitive advantage that customers find valuable. The drugstores achieve this by being able to act decisively, controlling retail programs related to price, and overwhelming customers with service, particularly in the handling of complaints. These drugstores used competency-based constructs and only one performance-based construct to become successful, without any

information provided about their focus on cost, flexibility, speed, innovation, or service. Similarly, Walmart focuses on technology to efficiently manage its supply chain, including the introduction of barcodes and RFID for better inventory management (Understanding RERA, Its Features and Benefits to the Property Buyers, n.d.). Walmart's primary focus is cost control while maintaining product attractiveness, which is a form of differentiation with a co-emphasis on cost leadership. However, there is no information provided about its focus on quality, flexibility, speed, innovation, or service (Competitive strategy and the Wal-Mart threat: positioning for survival and success., n.d.). Furthermore, Walmart's sheer size makes it difficult for associates to deliver exceptional customer service on a consistent basis (Competitive strategy and the Wal-Mart threat: positioning for survival and success., n.d.). On the other hand, small retailers are better equipped to tailor their product and service lines to local tastes, which emphasizes flexibility and service (Competitive strategy and the Wal-Mart threat: positioning for survival and success., n.d.). Empirical research supports the effectiveness of the "focus" approach among select small retailers, which emphasizes quality and innovation (Competitive strategy and the Wal-Mart threat: positioning for survival and success., n.d.). Meanwhile, eBay's microbusinesses beat big boxers at their own game by minimizing overhead, targeting specific buyers, and offering convenience (Competitive strategy and the Wal-Mart threat: positioning for survival and success., n.d.). This approach mimics a focus-low-cost strategy as defined by Michael Porter in 1980 (Competitive strategy and the Wal-Mart threat: positioning for survival and success., n.d.). In conclusion, different retailers have different priorities in their operations, such as cost control, quality service, flexibility, speed, innovation, or value orientation. Research and determine the company's current market position in this arena.

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To evolve a competitive planning that will be successful in today's market, it is essential to have a thorough understanding of a company's current market position (Competitive Strategy and the Threat to Wal-Mart: Positioning for Survival and Success., n.d.). It involves examining and describing a company's strengths, weaknesses, opportunities, and threats, and understanding its customer base, available resources, and market trends. This information becomes the basis for formulating an effective strategy, regardless of the chosen strategic option (Wal-Mart's Competitive Strategy and Threat: Positioning for Survival and Success., n.d.). It is also important to assess the competitive landscape in which the company operates, including the strengths and weaknesses of competitors and their strategies (Wal-Mart's Competitive Strategy and Threat: Positioning for Survival and Success., n.d.). Understanding a company's current market position is essential to both survival and success (Wal-Mart's Competitive Strategy and Threat: Positioning for Survival and Success., n.d.). Therefore, research is necessary to determine the company's current market position and ensure that its competitive strategy is based on the most accurate and up-to-date information available (Competitive Strategy and the Wal-Mart Threat: Positioning for Survival and Success., n.d.). Analyze the company's product position in the marketplace and explain how their strategy influences competitors. Walmart has a four-pronged strategy that includes minimizing costs, providing low-cost goods, offering a wide variety of products, and having a convenient shopping experience (Competitive strategy and the Wal-Mart threat: positioning for survival and success., n.d.) (Walmart’s Generic Competitive Strategy & Growth Strategies, n.d.). The company's main competitive advantage lies in selling low-cost goods (Understanding RERA, Its Features and Benefits to the Property Buyers, n.d.). This approach has influenced competitors in the

marketplace, including Target, Costco, Kroger, Amazon, Whole Foods, eBay, Best Buy, Home Depot, and Lowe's (Walmart’s Generic Competitive Strategy & Growth Strategies, n.d.). Walmart's strength in selling price minimization has made it a competitive force in the global retail market (Walmart’s Generic Competitive Strategy & Growth Strategies, n.d.). However, smaller retailers can still effectively attack the approach used by big box retailers like Walmart (Competitive strategy and the Wal-Mart threat: positioning for survival and success., n.d.). Walmart has other competitive advantages beyond low-cost goods, but they focus on providing low-cost goods to their customers. This strategy helps the company maintain their position as a market leader and sets them apart from other competitors. Walmart's generic competitive strategy of minimizing costs to offer attractive selling prices has implications for competitors in the retail industry. Competitors need to be aware of Walmart's strategy and adapt accordingly to remain competitive in the marketplace. Specific plans for addressing the threat posed by Walmart are outlined in the following section (Competitive strategy and the Wal-Mart threat: positioning for survival and success., n.d.). Develop a revised positioning strategy for Walmart based on determined competitiveness. Strategic positioning is a crucial aspect of any organization's competitiveness, and Walmart has been successful in developing a strategy for market competitiveness (Walmart’s Competitive Advantage Essay, n.d.). The adoption of cost leadership and differentiation strategies, which are part of Porter's strategies, has been key to Walmart's success. However, competing with Walmart solely based on costs can make a retailer vulnerable to price competition, even with a focus orientation (Walmart’s Competitive Advantage Essay, n.d.) (Competitive strategy and the Wal-Mart threat: positioning for survival and success., n.d.). Factors such as service, expertise, and delivery are essential in some product lines, and if

Walmart lacks the infrastructure to address these factors, a smaller retailer with a more value orientation can offer a better value (Competitive strategy and the Wal-Mart threat: positioning for survival and success., n.d.). Walmart's positioning strategy involves strategic placement of stores, with most stores located in the United States (Walmart Marketing Strategy, n.d.). The placement of Walmart's stores is based on considerations of what is good for business, and exceptional customer service is a key component of the consumer shopping experience (Walmart Marketing Strategy, n.d.) (Competitive strategy and the Wal-Mart threat: positioning for survival and success., n.d.). However, Walmart's sheer size makes it difficult for associates to deliver exceptional customer service on a consistent basis (Competitive strategy and the Wal-Mart threat: positioning for survival and success., n.d.). Walmart's image as Goliath in a David versus Goliath battle can also be a liability if consumers become sensitive to the plight of family-owned businesses defending themselves against the onslaught of a retail invasion (Competitive strategy and the Wal-Mart threat: positioning for survival and success., n.d.). Additionally, Walmart assumes that price is the primary factor consumers evaluate when choosing a retailer, which can be a disadvantage if customers seek other values in addition to low prices. Walmart retailers are challenged to alter product assortments and tailor offerings to the specific needs of a region due to their reliance on distribution and supply chain efficiencies (Competitive strategy and the Wal- Mart threat: positioning for survival and success., n.d.). To revitalize Walmart's positioning strategy, it is necessary to consider the resource strengths and shortcomings of the company when developing a strategic approach. This can be approached through three strategic alternatives, utilizing Porter's (1980) strategy typology (Competitive strategy and the Wal-Mart threat: positioning for survival and success., n.d.).

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The reason for drafting this article is to describe and investigate Walmart’s competitive superiority in the market. Every research highlights every retailer's different priority in its operations, with Walmart covering its key competitive advantage in its low-cost merchandise. In this article also shows that the vacancy of such info fails to spotlight Wal-Mart's focus on other elements important to successful competitiveness, such as quality, flexibility, speed, innovation, and customer service. It is important to remember where the company currently stands in the market sector - this part is equally important for every company, not only to survive, but also to thrive! The discussion shows that successful retailers have different priorities in their business operations, which may be cost control, quality service, flexibility, speed, innovation, or value orientation. This means that the correct positioning of a company and the strategies adopted by other companies in similar markets are critical to the success of its competitive strategy in a particular market. The Discussion section also notes limitations such as the lack of information on other retailers' strategies but provides room for future research to explore these areas. Overall, this research article provides useful insight into Walmart's competitive advantage and highlights the importance of understanding the company's priorities and market position when developing an effective competitive strategy.

References Understanding RERA, Its Features and Benefits to the Property Buyers. (n.d.) Retrieved February 16, 2024, from managemententhusiast.com Competitive strategy and the Wal-Mart threat: positioning for survival and success.. (n.d.) Retrieved February 16, 2024, from link.gale.com Walmart’s Generic Competitive Strategy & Growth Strategies. (n.d.) Retrieved February 16, 2024, from panmore.com Walmart’s Competitive Advantage Essay. (n.d.) Retrieved February 16, 2024, from ivypanda.com/essays/walmarts-competitive-advantage/ Competitive strategy and the Wal-Mart threat: positioning for survival and success.. (n.d.) Retrieved February 16, 2024, from link.gale.com Walmart Marketing Strategy. (n.d.) Retrieved February 16, 2024, from www.simplilearn.com

Business 312 - A2 - Copy

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