It is the way through which a company attains and sustains success. In this the results are studied in small and theoretical fragments and not in large and significant steps for management. It basically describes the markets and the business in which the company operates and functions. It highlights on a company’s strengths, weaknesses and capabilities and how these link to the market’s characteristics and the competitor’s strengths and weaknesses. It gives an overall direction to the company like that of “Walmart” and closely relates to the organizational studies field.
Source: David. (2005), ‘Strategic Management’, 10th Edition, Upper Saddle River – New Jersey: Prentice Hall
Walmart was founded by the Walton family in 1962 in Bentonville, Arkansas. This family now accounts for five out of the ten richest people on the planet. It is the world’s largest corporation (Fortune 2003), and is also a private player in United States of America. Walmart sells everything from pharmaceuticals to guns, food products, apparels, jewellery, CDs; etc and so no retail sector is safe from its competition. The sale of non-grocery items is about 60%. As a loss leader, they also sell petrol to attract customers to other products, up to 10 cents/gallon cheaper than other independent petrol station owners. This can be a classic example of the strategy adopted by Walmart to push out smaller more specialized businesses through high volume marketing. Walmart’s revenue forecast are to reach $700 billion in 2010 (Fernie and Arnold, 2002).
The industry has the biggest concern that the companies are going global and that many countries are restricting the growth of various companies of many countries. This is the major political influence the industry of supermarkets has. Another issue is that the expansion plans are getting hampered because of heavy European customs...