Wal-Mart Environmental Scan Assignment Help
Environmental scan is the analysis of macro and micro environmental factors that influence the business of firms (Hitt, Ireland & 
Hoskisson, 2010). There will be discussion of strengths, threats and strategies needed to handle these two environmental factors. In addition our business environmental scan case study assignment help experts discussed the competitor, competitive strategy, justification and impact of global environment on business.
Environmental Scan For this case study assignment help, Wal-Mart is chosen to conduct environmental scan for assessing the strengths, weaknesses, threats and opportunities (Wal-Mart, 2013). These are as follow:
Threats: Threats of Wal-Mart are as follow: Local Competitive Vendor: Local competitive vendor may pose threat to the business of Wal-Mart. To handle the challenges of local vendors, Wal-Mart should make its stores more accessible, convenient and comfortable for customers (Sadler, 2003). This will assist the company to minimize the threat posed by local vendors. It is so, as local vendors take advantage due to their convenient location that is preferred by people due to distance related issues. Low Pay: Low pay and poor working conditions may also pose threat to the business of Wal-Mart. It is so, due to these conditions, the workers may threaten the company by filing lawsuit. Wal-Mart should offer competitive wages and compensation to the workers to address the threat related to low pay (Wal-Mart, 2013). Large Competitors: There are also large rival firms that may create issues for the business of Wal-Mart. It is so, as these firms are also using similar strategy of selling low cost products to the customers. Company should stregthen its product categories to develop its niche in order to address the threat posed by large companies. For this, it should focus towards internal resources.
Strengths: Following are the strengths of Wal-Mart: Huge product category: Wal-Mart owns huge category of products and services. The Company can use this strength by offering more innovative products in the existing product category. It will assist it to reap out the benefits of its brand image of low cost retailer. Largest Employer: Wal-Mart employs large number of employees. So, it owns the title of largest employer in the retail business. The company can leverage this strength by offering equal pay and promotional opportunities to its employees whether it is male or female. It will help the company to avoid any lawsuit and save cost. Along with this, it will also develop competitive advantage by minimizing employee turnover rate and maximizing satisfaction rate of workers. Low Cost Leadership: Low cost leadership is strength of Wal-Mart due to which, it enjoys leading position in the retail business sector. By using low cost leadership strategy, Wal-Mart can enter into new business areas that are attractive for its further growth. It will help the company to attain competitive advantage in the marketplace.
Significant Competitor There are various competitors of Wal-Mart that are in the search of replacing Wal-Mart from its leading position in the retail business sector. Out of these competitors, Target Corporation is the significant competitor of Wal-Mart in North America (Wal-Mart Stores Inc Competitors, January 23, 2013). It offers products like electronic, beauty, baby care, healthcare, furniture, apparel, entertainment, toys etc.
Competitive Strategy Target Corporation also operates in similar industry, so it also offers similar kinds of products and services to the customers (Target Brands Inc, 2012). To deal with the competitive challenges posed by Target Corporation, company should focus over offering more innovative deals and offers to the customers. Target Corporation is also focusing on giving more on pay less tactic. So, to address this strategic tactic of Target Corporation, Wal-Mart should adopt counter strategies. The company should create striking ambiance in the store to the make the environment more attractive (Sadler, 2003). Furthermore our case study assignment help experts says that, company should adopt innovative strategies like ensuring separate parking space for disabled customers. Developing separate alerting systems for customers with toddlers, so when they arrive at the shop, the salesmen get ready to provide them assistance during shopping. These two tactics will help Wal-Mart to make a difference in service experience that is considered vital to differentiate the services offered by other firms in similar industry. Along with this, it will also help Wal-Mart to sustain its market share by attracting more customers towards its stores due to their convenient format and context for the shoppers.
Strategy Modification Wal-Mart is a US based retail firm, so any change in the economic conditions of US will directly affect the business status of Wal-Mart directly or indirectly. In order to adjust to the decline of economic situations of US, company should modify its strategy. As a part of this assignment help, Wal-Mart should offer value added services to the customers that are aimed to regain the confidence of shoppers in US. Company should also introduce several innovative products into its existing category to address the declining economic conditions (Sadler, 2003).
Justification Value added service based strategy is effective, as it will help the shoppers of US to regain their confidence in shopping during adverse conditions and enjoy the offers that are attractive in terms of value and price. It is true that Wal-Mart is already known for its low cost strategy. At the same time, if the company deploys tactics that are aimed to delight customers to shop even during adverse conditions like declining economy, it will help the company to strengthen its position in the mind of customers. Along with this, this strategy will also position Wal-Mart as the favorite company among people of US. It will also help Wal-Mart to differentiate its offerings from rival firms. It is so, as customers will feel that the company understands their concerns during adverse conditions and ready to make adjustments in its pricing strategies (Sadler, 2003).
Impact of Global Competition Global competition is changing dramatically and becoming intense day by day due to changing business environment. Following are factors of global competition that may impact the business of the company in different ways: Economy: Economic conditions keep on fluctuating. So, decline in economic conditions may impact the business of Wal-Mart by affecting the purchasing power of customers. For example, during economic downturn, people stop shopping at frequent basis to save money. Technology: Technological shift is also common in global marketplace. Firms are adopting new technology to replace the leading position of Wal-Mart in the retail industry. So, technical competency of other firms operating globally may also challenge the existing market share of Wal-Mart at global level (Hitt, Ireland & Hoskisson, 2010). By making the current technology obsolete, the firms may impact the business attractiveness of Wal-Mart. Socio-Culture: Social and cultural factors play a vital role in the purchasing behavior of customers. Firms operating in host countries other than USA may take advantage of values, assumptions and beliefs of people to challenge the business patterns of Wal-Mart dramatically. For example, firms operating in Japan may adopt quality strategy to counter attack the low cost strategy of Wal-Mart. It is so, as people in Japan are quality oriented rather than price. Political: Political factors like ruling party, rules and regulations etc if not favorable may also impact the business. For example, if the laws related to taxes in host counties are changed, it may affect the cost structure of Wal-Mart.
Strategy To handle the global competition, Wal-Mart should adopt following strategies: Innovation: To deal with the global competition, Wal-Mart should focus towards innovation. To ensure innovation, company should change its technology. For example, follow home delivery of orders to offer the products and services to the customers (Sadler, 2003). Expansion into other markets: Company is heavily dependent over the US market for its business growth and market share. So, it is recommended to Wal-Mart to focus towards other markets like Asian markets that are growing at pace in terms of their economic conditions. It will help Wal-Mart to expand its business and leverage the advantage of increasing income of people. Effective compensation: Company should also make sure that talented employees remain with it for longer time period. To ensure, it is recommended to Wal-Mart to offer effective and equal compensation to its employees. Social Responsibility: Wal-Mart should also take stand for socially responsible activities. It is so, as nowadays due to increasing impact of resources over the environment, concern of people has also increased about the environmental protection. So, if Wal-Mart adopts favorable steps like green building of its store layout and settings to minimize its environmental footprints, water and energy conservation strategies. Along with this, company should also provide aid to the organizations working for welfare of disabled and poor children to educate them and provide them proper facilities like shelter, food, cloth etc. It will help the company to become the retailer of choice among the customers (Hitt, Ireland & Hoskisson, 2010). References Hitt, M.A., Ireland, R.D. & Hoskisson, R.E. (2010). Strategic Management: Competitiveness & Globalization : Concepts. (9th ed). Mason, OH: Cengage Learning. Sadler, P. (2003). Strategic Management. (2nd ed). USA: Kogan Page Publishers. Target Brands Inc. (2012). Retrieved from http://www.target.com/ Wal-Mart Stores Inc Competitors. (January 23, 2013). Retrieved from http://www.nasdaq.com/symbol/wmt/competitors#.UQDc2R2E2W4 Wal-Mart (2013). Retrieved from http://www.walmart.com/ Get 100% Original and quality assignment help of all subjects. We assure you that you will get complete and original business assignment help on time. Students who need business assignment help can touch with our 24X7live support system or can send e-mail at info@www.assignmenthelpexperts.com