The Case of Walmart Stores Inc. (Article Review)
This paper attempts to study the case of Walmart Stores Inc. from the author’s perspective in her article ‘Walmart Stores, Inc. in 2013’. The purpose of the article is to analyze the strategies considered by Walmart to retain the sustainable competitive advantage over its rivals in the retailing sector which has become quite challenging with the establishment of One Stop Stores, heavy discounting and online selling. The purpose although not stated specifically can be interpreted easily from the situation depicted in the article concerning Walmart’s position in the retail sector.
RESEARCH QUESTIONS & INFORMATION
The key research question stated by the author at the end of the article was: What strategies should Walmart follow to retain the highest rank it has achieved in the US retail sector over the years in face of the challenges faced by it? Since the author describes the key strengths of Walmart and the challenges faced by it throughout the paper, it is obvious that the answer to the question lies in formulating a strategy that leverages the strengths described to overcome the challenges. It is easy to see that the question had prompted the author to write the article and can be related to the purpose of the article. It is specific enough to justify the issues addressed in the article.
The key information presented in the article is the performance report of Walmart Inc. since 2009, growth rate, its culture and the competition faced by it from its close rivals like Amazon, Costco and Carrefour etc. in both domestic and international markets. The information presented about its performance and operational efficiency is relevant to the issue of maintaining its current growth rate and competitive advantage over its rivals. It gives an idea about Walmart’s culture of innovativeness and integrity along with its focus on developing an efficient supplier and distribution network supported by logistics (Hassini, et al. 72).. This information helps in identifying Walmart’s key strengths and using them to maintain a competitive edge over its rivals. The author has collected this information by studying the literature available on the issue and cited them to substantiate her views on the subject. Her reference to the views of other authors outlines the complexities associated with the issue such as huge investments, competition from online retailing and the infrastructure required for international expansion.
The key concepts that are used in the article are SWOT analysis of internal and external environment of Walmart and how this would be useful in the formulation of future strategy by the new CEO. Although the author hasn’t explained the concept of SWOT analysis, her reference to the strengths and weaknesses in the article and her focus on the recent trends in retailing alludes towards the use of these ideas to make her point that Walmart must use its strengths and exploit the opportunities in retailing to build a competitive advantage. At the same time it should eliminate its reputation of being a poor employer and driving the small retailers out of business.
ASSUMPTIONS
Although the author makes a strong impression, her article is based on some assumptions, one of them is the fact that she takes for granted is that external conditions of business like global economic stability, political support from host countries and legal constraints are going to remain unchanged over the long run. Also it overlooks the possibility of innovations in retailing which may speed up distribution as well lower prices further and affect Walmart’s strategies. Also it takes for granted that customers’ preferences in retail shopping would remain the same. Lastly, the information collected from articles and company reports are assumed to be authentic and factual. However, the author does not appear to be sensitive to these underlying assumptions and uses them to base her statements.
INFERENCES AND IMPLICATIONS
The main conclusions that follow from this article are the facts that Walmart Inc. faces a serious threat to its top position from rivals and must build a strategy that accords it sustainable competitive advantage. Its strengths of low pricing, supplier and distribution network, innovative culture and integrity must be leveraged to maintain its position. However, this is not easy as there are many issues involved such as investments, infrastructural development etc.
Works Cited
Hassini, Elkafi, Chirag Surti, and Cory Searcy. "A literature review and a case study of sustainable supply chains with a focus on metrics." International Journal of Production Economics 140.1 (2012): 69-82.
