Assignment 2 External and Internal Environments
Jayzee545
Walmart.docxRunning head: WALMART INC.
WALMART INC. 7
Internal and external Environments
Jasim Khan
Strayer University
BUS499 Business Administration Capstone
Dr. Keller
Dr. Gardner
05/12/2019
Walmart Inc. has had various aspects of its operation that has given it a reason to remain active in the market. It has operated within different unique conditions that have formulated part of its strengths hence making it dominate the market segments. For instance, its adoption of the new technology system has enabled its globalization agenda. The information system has played a crucial role in ensuring that all the global demands are kept on notice and addressed within its scheduled time. The system has also played a leading role for the company in managing the welfare of its variety of employees as well as its clients. The use of a single information system by a standard source code has amongst other advantages enabled it to operate some of the least direct expense on a global level.
It is also evident that the adoption of technology by the company has played a central role in enhancing its daily interactions with the global community (N, Z, & C, 2008). The launching and fully operational Walmart Smartphone app have enabled the company to hit extended levels of marketing platforms. In this case, intelligent life has improved its global interactions hence enhancing its services by helping interact with customers on issues related to technology.
The company also considered the aspect of incorporating industrial organization model in its system. The system has helped in the sorting of its marketing structure thus enhancing an ideal platform for its business. The concept of realizing a perfect marketing structure plays a vital role in restructuring its market base. The company had a technique of maneuvering into a new market zone while aware of the threats helps in coming up with the challenges through ideal methods. The strategy helped the company in formulating appropriate strategy that gave it a 360-degree view of the potential zones. This enabled it to plan smart and launch solid and successful investments in new areas.
The idea of incorporating the industrial model in the system also helped it to realize the importance of the microeconomic aspect of business organizations. It hence invested in the aspect of microeconomic platforms to maximize their income. This strategy helps to realize the importance of any aspect of income; however minimal it may be (Satheesh Seenivasan, Debabrata Talukdar, 2016). It also confirms that the company’s perspective was to reach out to all sorts of consumers regardless of their size. Itself having a history of emanating from a minute size, it realized the needs of other small marketing enterprises thus having a perspective of investing in the sector.
The company also considered the aspect of considering the use of resource-based modes as a means of achieving above average results. The idea of a resource-based model enhances a sustainable advantage that results from a unique and superior way of doing things due to its formidable capabilities of handling various aspects. A resource-based model enhances the utilization of the available materials and opportunities to capitalize on them hence leading to efficiency by minimizing waste of resources.
The resource-based model also helped a lot in consideration of the internal factors that were available and that could be utilized to maximize the income. Unlike other companies who rush in the sourcing of external agencies to facilitate their corporation, Walmart had first to concentrate on its internal factors. This ensured that it first of capitalized on the internal skills hence a source of motivation to its employees. It consequently helps in identifying the firm’s potential essential resources, therefore, giving it a competitive advantage. This aspect helps in ensuring that the employees are involved in the daily operations of the company as well as utilizing every aspect of the company, hence minimizing wastes. It hence reduces the cost required in external outsourcing agencies as well as reducing the wage bill.
However, it is also ideal to recognize the fact that despite the company having recorded some landmark in its operation, there are also some weaknesses that must be highlighted. To begin with, the company is well known, but some of its products are not known as such. It is usually much more critical for the products to be understood much more than even the company itself. This hence poses a critique of the marketing department. There should be a means of ensuring that the products are as well-known as the company itself.
The company also has a reputation for hiring part-time employees. This hence makes people lack confidence in it since it is not as such reliable. Having part-time employees implies that there is partial production, and this occurs within a given period. This, therefore, means that it cannot provide full-time payment to employees who hence must keep soliciting for other jobs elsewhere. There should be means of having permanent staffs that are all season that is to help restructure the company for the high seasons.
The company has, however, some of the ideal tactical advantages to maximize its strengths. For instance, its ability to use technology should enable it to work on the various customers wants all over the globe and make their products much better. Since customers comment on their services on the smartphone app, the company should review the comments to make many improved steps in service delivery. The digital platform is one of the sure signs to confirm that the company’s products are being tested by a variety of consumers (Charles Courtemanche, Art Carden, 2011). The comments on the platforms are hence a justification that the products are out in the public domain.
The physical resource of the company is the ability to offer fresh products to its customers. This has led to its customers developing a preference for its products. One of the significant intangible resources is the aspect of the effectiveness of its resources-based system. It has successfully used the resource-based model which has enhanced a perfect utilization of its internal resources. The ability to offer fresh services has been its core capability as well as its core competence. The services place it at a competitive position against other service providers with similar facilities.
Sam’s Club is one of the most popular identities of the company. The club is operational in at least forty-eight states. It offers a wide variety of services including hard goods, soft goods, institutional-size groceries amongst other items. The clubs do have new departments to have the best for their customers. Sam’s Club is a formidable part of the company and has a unique reputation in areas of its operation.
Its international operating segments also have got a contributory role in the operation of the company. It hence helps the company to tap in the global potentials. For instance, the company has stores in Argentina, Puerto Rico, Brazil, China, Germany, South Korea, and Mexico. The international segment has played a leading role in globalizing the products of the company.
The companies also have the reputation of having fewer employees in their stores. This hence makes services congested, and some customers walk away frustrated. Under-staffing usually hurts companies (F, 2015). It led to poor service delivery and stalled transactions. Fatigue of employees may lead to mistakes which may result in losses. The company should hence consider having a well-staffed task force to make services much more attractive and satisfying.
Amazon poses as the bitter rival of Walmart. It has its services rated highly due to its quick deliveries as well as a vast selection of items. It is hence preferred for its varieties as well as its efficiency. Costco is also a company that has a considerable influence on the market. It is characterized by the ability to do massive shopping. Costco has a reputation for treating its employees with dignity too. In a way to address the competitors, Walmart engaged in the Information system to globalize its influence as well as lowering the value of its products to gain preference.
One of the most significant opportunities that are open to Walmart is its advantage to venture into developing countries. Due to high competition in the developed countries, the company has a chance to take into venturing in these regions. The corporation should set new stores with high technology to enhance its business in such areas. This shall give it a boost since there is much less competition compared to the present dominance of competitors in developed countries.
In conclusion, the Walmart as a company has already tasted the like of the market regardless of the presence of other competitors. The company still has opportunities for its dominance, but it just as well works on the mentioned weaknesses to capitalize on the opportunities underlying. There should be a consideration of a more honest approach of taking charge of the market by the company’s management.
References: Charles Courtemanche, Art Carden. (2011). Supersizing supercenters? The impact of Walmart Supercenters on body mass index and obesity. Journal of Urban Economics, 165-181. F, B.-H. (2015). Can Walmart make us healthier? Prescription drug prices and health care utilization. Journal of Health Economics,. N, D., Z, J., & C, S. (2008). The effects of Wal-Mart on local labor markets. Journal of Urban Economics, 405-430. Satheesh Seenivasan, Debabrata Talukdar. (2016). Competitive Effects of Wal-Mart Supercenter Entry: Moderating Roles of Category and Brand Characteristic. Journal of Retailing, 218-225.
