Assessment of Walmart's Current Strategy Using the SAFe Criteria

INTERNATIONAL ORGANISATION AND ASSESS THE CURRENT STRATEGY USING SAFe CRITERIA

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Executive Summary

The paper presents a comprehensive analysis of Walmart, utilizing the SAFe (Suitability, Acceptability, Feasibility) criteria to evaluate and propose a strategic plan for the retail giant. With a strong emphasis on Everyday Low Prices (EDLP) and an extensive product selection, Walmart's current strategy effectively meets market demands while leveraging its massive resource base and skillfully handling competitive pressures. It receives high marks for suitability. Investors are presented with a nuanced picture of the strategy's acceptability, with non-financial metrics highlighting a strong commitment to customer satisfaction and financial indicators like the P/E ratio and ROE indicating wise investment opportunities. Walmart has the human resources, financial, operational, and technological prowess, knowledge of external economic, social, and regulatory factors, and access to necessary resources to make its strategic direction a reality. The company's primary strategic directives are embracing technological innovations to bolster its e-commerce platform, growing customer feedback mechanisms, and streamlining the supply chain. It is important to acknowledge the potential difficulties in keeping prices low when faced with fluctuating costs and changing consumer preferences. It requires a flexible yet well-organized approach to implementation. To sustain growth and market leadership in the unstable retail sector, Walmart's strategy—while robust—must continue to be flexible and responsive.

Table of Contents

Executive Summary. 2

Introduction. 4

Analysis. 4

Walmart’s Business Strategy. 5

Walmart’s Strategy and SAFe Criteria. 6

Suitability. 6

Acceptability. 8

Feasibility. 9

Proposed Strategies and Implementation. 11

Strategic Directions. 11

Product/Service Diversification and Market Expansion. 11

Customer Engagement - Improving Loyalty and Experience. 11

Sustainability and Social Responsibility. 12

Perspectives on Implementation. 12

Allocating Resources - Capital Investment and Budgeting. 12

Organizational and Cultural Change Management 12

Risk Management - Recognizing and Reducing Possible Risks. 13

Establishing Finite Objectives and Milestones. 13

Strategic and Implementation Plan. 13

Conclusion. 14

Reference List 15

“International Organisation and Assess the Current Strategy using the Safe Criteria.”

Introduction

Sound business strategy is crucial to a company’s success in today’s fast-paced, international marketplace. Modern companies must navigate competitive markets, changing customer demands, and rapid technological advancements (Aslam et al. 2020). The SAFe criteria, which stand for suitability, acceptability, and feasibility, evaluate proposed approaches concerning stakeholder values, organizational goals, and practical execution capabilities. In this context, Walmart is a prime example of retail excellence (Kodapally et al. 2022). Sam Walton established Walmart in 1962 and maintained its supremacy in the sector by acquiring multiple e-commerce companies. With 10,623 stores and 380 distribution centers spread over 27 countries, Walmart has a considerable retail footprint worldwide (Ozbun 2023a). According to Jindal et al. (2021), Walmart’s annual revenues surpass, demonstrating its financial ability and successful implementation of its Everyday Low Price (EDLP) strategy. Therefore, this paper analyzes Walmart’s current strategies using SAFe criteria and proposes a sustainable growth strategy that balances market edge with customer-centric innovations.

Analysis

With its business strategy, Walmart has established a strong brand in the US, selling everything from electronics to food, with in-store grocery sales accounting for more than 58% of company revenue indicated below. Despite differing levels of success, international endeavors consistently showcase Walmart’s dedication to being the leading global retailer (Ozbun 2023b).

Figure 1: Net Sales Share of Walmart (Ozbun 2023b)

At the center of Walmart’s evolution is a continual dedication to customer convenience and value, concurrently building a corporate ethos that blends traditional retailing with new, innovative customer service solutions. Thus, the company’s future-focused strategic moves demonstrate an adaptable approach to overcoming market obstacles, leveraging technology breakthroughs, and maintaining an edge over the changing consumer landscape.

Walmart’s Business Strategy

Targeting customers' desires for convenient one-stop shopping across multiple channels (web, mobile app, and physical store) is central to Walmart's business strategy, which revolves around the slogan "Everyday Low Prices" (EDLP) (Jindal et al. 2021). Its vast selection of products across many categories reflects its dedication to providing convenience and value. The strategic goals highlight Walmart's aspiration to integrate its extensive supply chain with its vast retail operations. According to Simms (2020), Walmart expects top-line growth and operating income expansion mainly due to its recommitment to large-scale investments in technology and infrastructure, signaled by its promise of an omnipresent approach. Using a streamlined omnichannel retailing ecosystem that combines in-store and online shopping remains the primary focus.

Walmart's operational strategies strongly emphasize creating a next-generation supply chain supported by automation, data analytics, and an innovative omnichannel network. Efficiency improvements can result from this strategy's focus on streamlined inventory management and enhanced customer and employee experiences. The shift to a more automated supply chain is anticipated to benefit a sizable percentage of stores and have the potential to increase significantly unit cost efficiencies. Walmart has strategically developed a comprehensive plan to enhance its omnichannel presence, strengthen its supply chain, and leverage data analytics (Adivar, Hüseyinoğlu & Christopher 2019). This well-thought-out approach aims to effectively address the increasing competition posed by e-commerce giants such as Amazon. The push for sustainability and environmentally friendly practices has a twofold objective: meeting current socio-political demands and appealing to a portion of investors who prioritize the environment. Tabesh, Mousavidin, and Hasani (2019) indicated that big data technology investments are strategic to improve customer experiences and supplier relationships, not just for competitiveness.

Walmart’s Strategy and SAFe Criteria

Suitability

Market Demands and Current Trends. Analyzing the changing retail landscape is essential for determining whether or not Walmart's current strategy is appropriate in light of consumer demands and industry developments. The massive brick-and-mortar retailer Walmart has adapted to this change by growing its online presence, most notably through the launch of Walmart Marketplace. It is a visionary strategic move, as market trends indicate that consumers are becoming increasingly accustomed to the convenience of online platforms. In addition, the price-conscious customers who make up a sizable portion of the market are well served by Walmart's EDLP and Everyday Low Cost (EDLC) pricing strategy (Smith 2019). Thus, Walmart's dedication to low prices meets this demand. Therefore, the strategy will likely remain relevant even in the face of the trend toward value-driven purchases.