Task: Research and describe the internal and external environments of 2 to 3 real-world companies using an environmental scan. (Companies being analyzed in this case are Walmart, Kmart, and Target)
Determine what competitive advantages each company has and what strategies each company is using.
- How does each company create value and sustain competitive advantage through business strategy?
- What measurement guidelines is each company using to verify its strategic effectiveness?
- How effective are the measurement guidelines that each company is using?
Include references as well.
Company 1: Walmart
The company focuses on employee knowledge and training. The leadership is committed to provide effective operations. Customer needs are of top priority to the company and everybody works to exceed customer expectation. Walmart though is not among top paymasters, working conditions are not compromised.
The external environment consists of technological, legal, social, economic and political factors. The company makes us of latest technology to produce best products. Walmart abides by local laws of countries where it operates. Through its offerings societal development is made effective. Walmart, because of its lower prices is not much affected by economic swings. People would in any situation, at least visit a Walmart to fulfill their basic needs. Political considerations are also important in sustaining growth.
Walmart has competitive advantage of being the only retail chain which claims to have the lowest prices. To sustain this competitive advantage Walmart has employed different strategies like:
- The ability to use its resources and capabilities better than competitors.
- Sophisticated inbound logistics which lowers the cost of inbound logistics. This lowers the cost of goods sold.
- Strategic partnerships with key large suppliers providing it with superior assess to inputs than its competitors.
Walmart has a strong culture which is the backbone for providing low cost to customers. It has a strong brand presence as a cost leader and a set of unique operational activities which provide continued cost advantage. With such a combination of unique operational activities and continued cost savings which are difficult to imitate by competitors, the retailer would continue to dominate the industry.
Walmart assess its position in the market as compared to competitors by tracing growth ...
This solution provides a 1000 word response which completes a detailed environmental scan of the companies Walmart, Target and Kmart. This response analyzes the internal and external environments of these companies, while discussing the features which give these companies a competitive edge and how their measurement guidelines are effective in maintaining efficiency. References are also provided.