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Essay: Analysing Walmart’s internal environment

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  • Subject area(s): Business essays
  • Reading time: 4 minutes
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  • Published: 5 October 2022*
  • Last Modified: 22 July 2024
  • File format: Text
  • Words: 1,108 (approx)
  • Number of pages: 5 (approx)
  • Tags: Walmart essays

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Resources

Walmart is a richest company in context of its resources and resources of Walmart are considered most valued, imitable (at pricing) and rare also because these resources are not easily available for competitors. Resources are mainly have 2 types

  • Tangible resources
  • Financial resources

Financial resources of Walmart are much more than its competitors due to its large scale operations and sales. Strong financial resources provide provides strategic benefits to Walmart. Financial resources provide support for bold and huge decisions. Financial condition of a company always helps a firm in gaining competitive edge. Walmart is the best example in such case. Strong financial resources will make a firm fearless in its decisions because it eliminates the risk of bankruptcy and decline in case of any new initiative.

Organizational resources

Organizational resources of Walmart are the main reason behind its success. Corporate strategy of Walmart also provides support to its organizational resources. The main strategy of Walmart is selling at lowest prices and this strategy is the key due to which Walmart dominate in the retail industry as compared to its competitors. Walmart tries to cut the price of products as less as they can and try to earn profit through huge volume of sales. Another target of Walmart is expansion and Walmart is successfully achieving this target by expanding its business to different parts of world. Competitive strategy of Walmart is also very successful and Walmart is leading the market and competitors are far behind. Competitive strategy depends upon pricing strategy. Because low price attract more customers and maintain competitive edge.

Physical resources

In term of physical resources Walmart is much strong and powerful as compared to any other firm in market. Walmart stores are well equipped and advanced according to the needs and requirements of its operations. Physical resources of Walmart are a major strength for company. Walmart has 11,503 stores and clubs in 27 countries around the world. Relationship with suppliers also provide benefit in continuous supply of products according to demand.

Technological resources

Website and online store of Walmart are major resources in field of technology. Walmart is also using automation at different levels like data management, sorting inventories. Lasers systems are also installed and getting advanced day by day. Walmart is also using robots at different levels and for different activities. Mobile application of Walmart is also considered as one of the most important technological resource.

Intangible resources

Human resources

Walmart gain trust and attentions of its employees because Walmart provide special attention and benefits to its employees. Walmart focus on recruitment at higher post from its own staff. Employees feel them owner of firm because of respect and many employees also have shares of Walmart. Customers are also influenced with trust. Knowledge management and managerial capabilities of Walmart are interrelated and their core focus is their customer needs and demands.

Innovation resources

Due to volatile and highly competitive market environment Walmart shows a very keen concern towards innovation and advancements. Due to competitors like Amazon Walmart focus on innovative technology and advancements. Walmart is using automated assistants to make its operations more fast and efficient. Use of autonomous cargo vans to deliver grocery and use of self-driving cars show the concerns of Walmart for innovation. From artificial intelligence to customer care service under consideration Walmart has so many ideas and methods. Due to efficient and growing business of Walmart it has full ability and potential towards innovation.

Reputational resources

Millions of customers daily visit Walmart due to which Walmart is the retail brand in the world with high recognition. Customers give priority to Walmart because 60 million products are available at Walmart and the price at walamart is lowest as compared to the market. Walmart promotes a a very strong reaaltionship with its suppliers because operation of Walmart is totally dependent on suppliers.

Capabilities

Capabilities of Walmart are essence of the company and the main reason of competitive edge. The main capability of Walmart is operations at a very large scale and due to which Walmart purchases material in bulk amount and gain benefits of economies of scale. Walmart focus on cost leadership strategy to provide least possible prices to its customers and Walmart leads the market mainly on the basis of this strategy. Logistic management techniques of Walmart are much efficient because of effectively managing its warehouse operations and transportation of goods. Use of automation advancements increase efficiency of Walmart logistic management system. Motivation and empowerment of employees of helps Walmart in retention strategy and this is also a major capability of Walmart. With the use of advance information system Walmart efficiently manage its inventory records and purchase records.

With online stores and with the help of artificial intelligence Walmart has nearly 60 million products available and this wide range of products is also considered competitive capability of Walmart. Such diverse products that Walmart offer, products with private label brands, and the network of package delivery are considered as organizational capabilities of Walmart. Global level operations are also considered as capability of Walmart and improving day by day.

Core Competencies

Capabilities and resources of any firm are the major assets and considered weapon for competitive edge. Within these capabilities and resources some are considered as core competencies of wlmart. Buying power of Walmart in a bulk amount provides benefit of economies of scales. Due to this capacity Walmart offers lowest prices in the market and this become a challenge for competitors. This cost leadership strategy is the main core competency of Walmart. It is not easily imitable. The brand value of Walmart is also considered core competence because Walmart has much value for customers and brand value is also rare and inimitable. The variety and diversity of products that Walmart offer is considered as major core competence. Walmart offers nearly 60 million products which is considered perfect according to VRIO framework. Walmart investment and interest in IT provides many benefits in online sales and management of data and inventories also. Wal-Mart has established the universal bar code system and this will help the firm improve their inventory management system and maintain their supply chain.

Walmart has extensive data of customers and access to consumer data is very easy and this becomes another core competency. Walmart has millions of daily consumers that generate vast data and beneficial in measurement of purchase behaviors. This will also help Walmart to forecast the needs and demands of customers and also analyze fluctuations in needs and demands. This data is also beneficial in data analytics and mining which arrange a total valued data for e-commerce industry and will be able to help Walmart to compete with well-known competitors like Amazon.

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