Analysis of a Fortune 500 Company

In addition, the company has invested heavily on digital market, which has further pushed the company’s competitive advantage in relation to others. The Walmart brand that started as a simple discount retailer in 1945 has spread throughout in not only the United States, but also other parts of world. Therefore, it boosts for being on global scale. Ingenious investment in online sales has contributed greatly to cost-efficiency of retail operations and derives great share of Walmart’s fortunes (Walmart Inc. Constant improvements of access, prices, and assortments are the core values of Walmart competitive strategy. In general merchandise-retailing segment, Walmart faces competition from Kmart, Target, and Circuit City among others. In Warehouse segment, Walmart battles with Costco in the same market segment.

Importantly, Walmart is in direct competition with large supermarket retailers such as Kroger, Albertson’s, and Safeway (Green, 2017). In ecommerce, Walmart competes with digital retailers and catalog business such as Amazon, and Target among others. However, Walmart has developed distinct strategy to lay-off its competitors in the market as it ventures into increasing its market share to consumers. However, in order to understand Walmart’s industry analysis, it is important to analyze the environment under which the company is operating under using porter’s five forces i. e. rivalry among existing firms, threat of new entrants, bargaining power of suppliers and bargaining power of buyers. On the concept of rivalry among Walmart and the existing firms, the size of Walmart and its domination makes the company excel in the retail industry (Greenspan, 2015).

Few companies can effectively manage to compete with Walmart. The few existing substitutes for the retail market industry are more expensive as compared to those offered by Walmart firm. This makes Walmart to be easily considered by the customers in choosing its goods over those of the substitutes (Dudoviskiy, 2016). The retail industry has strong intensity of attracting new entrants into the market. Even in the presence of giant retailers, small entrants can still emerge and pose some competition. The small retailers can enter into the market and compete with established retailers based on convenience, specialty, location and other important factors. Through fruitful CSR strategy and strict adherence to the government regulations, Walmart has managed to maintain strong reputation and public image as compared to other retail firms.

Analysis of Internal issues Board of directors and management (Corporate Leadership) Walmart corporate success and competitiveness in the market revolves around strong corporate leadership management that has ensured that the company operates with utmost accountability and integrity. The company has developed a strong corporate culture, which has been key in building and sustaining its business strategy (Glassdoor Team, 2016). Walmart has integrated its organizational culture into its business planning. The senior management and the executive participates actively in the planning of the company’s activities and act as role models to other employees as they impart company’s business strategy and values to them within the organization (Lombardo, 2017). According to Walmart’s annual reports Walmart’s sales in 2017 rose significantly, and this is attributed to increased customer traffic following better treatment of workers by the company (Pearson, 2016).

In 2016, Walmart engage in aggressive plan to improve the livelihoods and working conditions of its workers. This strategy saw an increase in wages of each employee at the firm. The company has also created training centers to equip its employees on better management relationship of its customers. In relation to this, better-paid and trained workers gave the shoppers better experience and thus, increased sales as experienced in the financial year for Walmart (Pearson, 2016). Significantly, shareholders play a role in supporting the company in stock market as well as direct operations in company. Walmart’s shareholders always ensure that the company remains profitable through prudent investment and proper utilization of available resources. Through these actions, Walmart’s shareholders have been viewed to carry the company’s mantle by ensuring that everyone within the organization focus on achieving ultimate corporate strategy, values, and increasing the competitive advantage of the Company.

Walmart’s SWOT analysis The analysis of this institution focuses on both the financial and strategic point of view. This is because these factors and trends affects the overall institution and have implications on the operations of this institution. In addition, Walmart is largest retailer in the world, therefore, it has established brand name that is recognizable throughout the world. Given the company’s scale of operation, it has superior economies of scale that enables it to maintain a strong and competitive advantage in the market since it can offer low prices, which makes it difficult for competitors to operate Significantly, Walmart’s technological advancement has ensured that the company is better equipped in tracking sales, inventory, creating efficient supply, and making of decisions.

This has ensured that the all the stores are well stocked all the time. Weaknesses The company’s brand is accruing association of some weaknesses making customers shift their demands to the competitors. Comparing the firm with Kmart, Target, and Circuit City, we realize its innovation rate to be on decline. The company has opportunity to increase grocery stores to compete with other supermarkets. Apart from the above-disclosed areas, the company still has more chances of diversifying its investments to ensure market presence and progressiveness in the untapped regions. Walmart can consider investing on low cost supply chains thus, reducing its associated costs. Threats Competition is growing immensely in the retail industry with many companies coming up. It is a core threat to the Walmart’s ability of increasing its proactiveness in the market.

The management has exceptional determination in ensuring protection of employees, customers, and shareholders as they support the organizational ability to grow significantly. The company allows all these parties to express their opinions without any fear. The use of the model has proven to improve the firm’s decision-making process hence making Walmart’s manage to compete its rivals in the industry. Conclusion From company’s SEC Form 10-k annual report, and DEF-14A Proxy statement together with sources indicate that Walmart Company, a top company in Fortune 500 list, continue to gain competitive advantage over its competitors in retail industry. The analysis of external aspects such as the competitors, industry, customers, government, and communities show that Walmart has strong competitive advantage, and superior corporate strategy.