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Shaquita Spruill1Strategic Plan, Part 3: Strategic EvaluationShaquita Spruill07/30/18STR/581Professor Erine Wake
Shaquita Spruill2Strategic Plan, Part 3: Strategic EvaluationWalmart's strategies are built on its strengths. The company has a great brand, excels inlogistics and measurement, and uses these to position itself well. Its size creates abilities foreconomies of scale that simply cannot be matched, giving Walmart a source of sustainablecompetitive advantage. Walmart’s business level, corporate and global strategies will bediscussed in further detail.Business level strategiesBusiness level strategies is an integrated and coordinated set of commitments and actionsthe firm uses to gain a competitive advantage by exploiting core competencies in specificproduct markets(Hitt, Ireland & Hoskisson, 2015). . Business-level strategy indicates the choicesthe firm has made about how it intends to compete in individual product markets. The choicesare important because long-term performance is linked to a firm’s strategies. Given thecomplexity of successfully competing in the global economy, the choices about how the firm willcompete can be difficult(Hitt, Ireland & Hoskisson, 2015). .Walmart business strategy is based on ‘everyday low prices’ philosophy of the company.In other words, Walmart pursues cost leadership business strategy enabled by the economies ofscale derived by the company in a significant extent (Dudovskiy, 2016). An efficient utilizationof online sales channel contributes to the level of cost-efficiency of retail operations and about 75percent of walmart.com sales come from non-store inventoryWhen we look at the competition, it becomes notable that Walmart has been able tosatisfy its customers on a regular basis. Their focus on felicitating the customer has reaped
Shaquita Spruill3beneficial results. Walmart has based its processes to felicitate the customers("Business LevelStrategy of Walmart International | Researchomatic", 2012). The main factor for any customer isthe affordability factor. Walmart offers economical prices in order to attract and retain its loyalcustomers.Their focus on providing world class quality to its customers along with offering the mosteconomical prices makes them a world leader in the market. When customers know that they willget the best possible price along with high class quality products, they would not go anywhereelse ("Business Level Strategy of Walmart International | Researchomatic", 2012). The nature ofWalmart's products has been standardized. Many world Class Organizations are selling theirproducts through Walmart. There is an attraction for Multinational Organizations as well.