Final Strategy Plan Essay Example | Topics and Well Written Essays - 1000 words

Final Strategy Plan - Essay Example A company pursues differentiation and low-cost under this strategy. Wal-Mart Stores Inc. also known as Walmart since 2008, is a US based multinational retail corporation operating a chain of large discount department stores and warehouse stores. According to Forbes Global 2000, it is the 18th largest corporation of the world and the largest corporation by revenue. The major control of the company is in the hands of the Walton family owing 48% stake in the company (Worstall, 2011). Walmart holds a dominant position in the brick-mortar based retail stores. However, realizing the importance and expansion of online selling, Walmart began its online store back in 2000. Initially, it was assumed that being the retail giant it is, it would soon become an online retail giant as well. Walmart could not be as successful in online selling as it has been with its offline stores. According to company analysts, they thought that the online consumer base is particularly different from the conventio nal Walmart shoppers. Hence, the company needed a new strategy where it could create a differential advantage while keeping the costs at a minimum. 6 Paths Framework Industry – Most companies operate under the assumption that they are in a particular industry having its own norms and ways, which limits their expansion. Walmart belongs to the retail store business; the company sells products belonging to various categories. Walmart online can look itself as being in the business of selling all kinds of products online. It needs to look at itself as an online business having a strong brick-and-mortar business for support. Look across strategic group – Walmart online needs to compete not only with giant online retailers such as Ebay, Amazon.com, it also needs to compete with other smaller online retailers selling specific products. Walmart online needs to become the best online retailer in every category of product. Look across complementary services and offering – A seller needs to take into account the things needed to finish the purchase. For example, while buying online, a consumer would need a credit or a debit card to make the purchase. Walmart can form alliances with banks providing specific services and offers to its customers so that they can take advantage while using Walmart online. They also need to have better delivery and reduce shipment times. Look across functional/Emotional Appeal to buyers – Walmart online needs to create a connect with its offline customers and persuade them to shop online while bringing in new customers as well. Look across time – Walmart online should be able to foresee trends and proactively design strategies. In this regard, a major emerging trend would be online shopping. More and more consumers are shifting from offline to online shopping. Hence, Walmart needs to strengthen its online business to retain its existing customers and cater to new ones (Berg, 2011). Becoming an i-business Wal mart has struggled as an online retailer and although, initially it did not matter but in a time when low income households are moving towards ecommerce, Walmart needs to strengthen Walmart online. The biggest differential edge that Walmart had was that it had the lowest price on broadest assortment of goods. They need to transform this advantage online. The steps they can take in this regard: Home delivery of fresh groceries Integration of social media and mobile apps along with