Walmart Internal and External Audit
1. Core competency/Cost Leadership- Walmart is known for their “everyday low prices.” This sets them aside from their major competitors such as Target. Walmart strives for "saving people money so they can live better." With the cost leadership strategy in effect, Walmart is ensured a steady and returning flow of customers to their stores. That understood, Walmart has a comparative advantage over their competition. Consumers are able to feel better about their purchases knowing they are at a discounted price. Walmart is therefore given a rating of 4 and weighted score of 1.0 in this category. 2. Economies of Scale- Walmart is rated a 3 with a weighted score of 0.3 in this particular category. Being the giant …show more content…
However, when such offensive stories make headlines, and the behind the scenes wrongdoings are made public, consumers may second-guess where they are shopping, and consequently may have an impact on its current ratings.
Overall, Walmart has received a 3.0-weighted score in relation to its industry. It appears that its core competency of implementing a cost leadership strategy as well as providing a wide range of products of lower quality has more of an impact in respect to its industry. Economies of scale, its large span of control and concerns about Walmart’s ethical position are certainly of concern; however, such factors appear to have less of an influence.
1. Changing financial lifestyle for consumers- It is no doubt that Walmart has given many opportunities to their consumers. We see this simply with their everyday low prices. Such low prices give consumers the opportunity to buy products more suitable for their financial lifestyle. Sure, most people are already aware of their discount pricing and so it may be thought that their “regular” customers are the basis of their success. However, with times as tough as they currently are, more and more people are converting to doing their shopping at the discount store. We can see this everywhere. Of course, if there is no Supercenter in the customers’ town, the