Advanced Strategic Management in Wal-Mart Inc.

Running Head: Advanced Strategic Management

Advanced Strategic Management in Wal-Mart Inc.

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Introduction

Being the successful multinational corporation it is, Wal-MartInc. has been subject to multiple case studies most of which focus on its strategies that have either contributed to its success or failure in different regions. Like any other business though, case studies have indicated that the exposure to the market is similar to other players in the industry. The difference lies majorly in the application of the VRIO framework which has in fact given the corporation an edge in the industry. Major questions asked revolve around the capability to work around their resources to take advantage of the available opportunities and to survive despite the many threats…

From the case study carried out, it is quite clear that the industry  is set to favor the pricing by the companies. Thus, the industry structure is a major opportunity that WalMart has capitalized on. Among the strategies used by the company is the lower pricing compared to other industry players. The case study clearly outlines this giving the view that the company’s products are relatively more affordable due to the economies of scale.

Changing trends to adopt more healthy eating habits and a growing market are also viewed as great opportunities for Wal-Mart. From the case study, it is clear that the industry is directly dependent on the size of the market, where the more clients a company has, the more revenue they can generate. Given their brand, the large market base has allowed them to enjoy customer loyalty which also increases with the increase in the general market. Studies have shown that within a period of one year, the market has increased by 5%  thus, growing their revenue as well Hayden, Lee, McMahon& Pereira (28). This has been backed by the euphoria to eat healthier which directly favors their products. It is therefore justifiable, to argue that the changing trends in eating habits and the increased market are great opportunities for Wal-Mart.

Among the threats that Wal-Mart has been exposed include entry of competitors to industry, rivalry and substitute products. Hayden, Lee, McMahon& Pereira (26) clearly indicate in the case study that the main products of the industry are readily available and with the right resources, any firm can start up. There is also the capability of variety to choose from that may split the market that is already loyal. However, the David W. Crain and Stan Abraham argue the ability to brand has largely shielded the firm from failure in most regions.

VRIO FRAMEWORK

The value of the company has been a major shield given that it is well capable of handling the challenges by properly employing their resources. Hayden, Lee, McMahon& Pereira (23) further in their analysis elaborate how the value of the firm is always  a priority since it is a clear indication of their capability to handle the potential challenges and threats. Further, this has enabled the firm to take advantage of available opportunities which smaller and less valued companies find expensive and difficult to effectively capitalize on. The company also has a value of quality and customer services. These value propositions serve as the central focus to enhance its image and competitive advantage in the market.

Rarity is also a great form of competitive advantage that Wal-Mart has tak.............