Essay on Walmart Inc. Harvard Case
Walmart Stores, Inc.
Which strategic management concepts are useful in the analysis of this case?
1. SWOT Analysis
Walmart’s internal strengths and weaknesses and environmental opportunities and threads are:
Highly motivated and committed employees (Associates)
Top management involved on daily operations (street managers)
Latitude price setting (allows more profitability in different locations)
Technology oriented (Satellite system and logistic software)
Alliance with suppliers (data sharing and loyal relationships)
Various format stores for different segments.
Associates stock ownership linked to economy cycles.
Top executes flaunt millionaire salaries. …show more content…
Walmart is strongly focused on empowering its associates by sharing results, involving them in teamwork to address suggestions and extend their range of work responsibility to encourage motivation. Allowed managers to set product prices according to their understanding about specific customer preferences, which increased profitability on different segments.
-Communication and supervision: (support activity)
Walmart’s top executives are “street managers” because they are highly involved with daily operations, visiting stores on weekly basis increased customer preferences knowledge on individual product sales and specific stores. Walmart also developed a strong supervision team and encourage frequent meeting to incentive communication. Proactive and well informed managers can take faster and better decisions reducing opportunity costs.
Why do you think each of your selected concepts are useful for understanding this case?
The SWOT analysis is useful to identify the internal and external factors that affect Walmart in pursue of its objectives in the food retail industry.
The Internal value chain is useful to identify those activities that create competitive advantage. My analysis is based on a low cost differentiation generic strategy and location niche. Walmart marketing slogan “Always low prices—always” represents the