Starting with a single discount store in addition to a very simple business idea which involved selling at discounted prices, Walmart has grown for over 50 years thus becoming world’s largest retailer trusted by many across the nations. It is estimated that every week more than 270 million members and customers visit the thousands of stores owned by Walmart in numerous countries as well as the e-commerce webpages under a number of banners. Walmart is said to have the 2019 fiscal year revenue at $514.4 billion, employing more than 2 million associates across the globe (Jurevicius, 2019). The company maintains its leadership status in sustainable employment opportunities as well as corporate philanthropy; which are all parts of the unwavering commitment the company has in creating opportunities as well as bringing value to the communities and customers throughout the globe. Competitive advantage refers to the means through which a company manages to maintain its money or profit-making processes, sustain the position that it has against its competitors and add value through ensuring that it provides different products. Walmart Inc. is no doubt one of the retail stores which have managed to achieve competitive advantage and still wants to achieve more so as to maintain its position in the market and the global business map. There are different ways in which the company can achieve a competitive advantage and be on top of its game thus beat the competitors that it has. Although the company has already achieved a competitive advantage, it needs to sustain it so as to ensure success. In order to do this, the company through the leadership knowledge and employee base as well as resources it can manage to sustain its competitive advantage successfully.
Leadership is very crucial when it comes to the success of a business and maintaining its status and market share in the business world. Since leaders influence the decision of the company and give it the direction to be followed, they are at the forefront of ensuring Walmart sustains its competitive advantage. For the company to successfully sustain their competitive advantage, then it is important that the leaders be equipped with appropriate leadership capabilities so as to create the organization's strategies. Every strategy is significant in the company since strategies are for the purposes of winning which would ensure success in the end. Having a good strategy is significant since the primary goal of any strategy is enhancing the company’s long-term competitive status and position, thus sustaining the competitive advantages that it has over its competitors. With reference to Gamble et al., (2010) when it comes to creating a strategy which is effective, then strategic leadership is very crucial; thus the core of organizational success. Leadership means a lot in the company since leaders are capable of influencing the company’s decisions as well as choices which eventually determines the company’s success. Walmart’s leaders need to employ strategic leadership which is a core piece of knowledge they contain. Strategic leadership refers to the inspiration process which facilitates higher management team performance to attain specific objectives (Clegg et al., 2017). It is concerned with the most appropriate way to manage the strategy-making processes of the company for the purposes of creating competitive advantage. Through strategic leadership, Walmart’s leaders would be able to envision, empower, anticipate, and maintain flexibility across the company to create the necessary strategic plan with an added advantage which would give a hand in sustaining the company’s competitive advantage.
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With reference to the emphasis of dynamic capability theory, leaders alter their existing paradigms and models so as to be able to adapt to the environment which is always changing. Dynamic capabilities refer to the processes entailed in a farm which are capable of reconfiguring the resources in order to respond to the changes within the marketplace (Clegg et al., 2017). Walmart leaders need to have the appropriate leadership skills and style mostly in strategic leadership which is very handy in promoting sustainable competitive advantage. The main reason for having strategic leadership skills is because every day the business world changes, thus presenting new challenges which require different techniques to solve them. Therefore, leaders have to think differently and strategically about the capabilities and roles that they have in addition to how they should be improved to ensure that they lead the company towards long-term success (Barton et al., 2012).
Leaders in the company are just like any other employee-owned by Walmart. Employees have a major role to play in the company not only as directed by their leaders in top positions, but also in their own way provided they maintain the company’s name and image. Just like in any other business organization, employees are the face of the company and therefore have a lot to say about the company as they package and sell Walmart’s image. Employees at Walmart are crucial when it comes to the company maintaining the status that it has towards its customers which is providing top-notch customer service. All the retail conglomerates practically sell similar products; however, it is the excellence with which the employees of the company are packaged with which will make the keep on customer coming back for more from the company. When customers receive exceptional treatment when visiting or engaging in business with the company, it is usually considered as the cheapest advertising form for the brand. For the purposes of excelling in having stellar experience in customer service, then it is a must for the company to consider customer service dedication not only towards the customers but also to the employees, ensuring that there is an immediate feedback, going beyond and above whatever that is needed or has been asked for and ensuring that all the customers get their goods according to the promise given and without causing them headaches due to return policies which are rule-driven and lengthy or defected. When customers receive extraordinary service, then it is very clear that it would not only ensure that the customers keep on coming back, but would also appeal to the general market thus driving the competition. In order, for the company to improve on the experience of its customers, then the human resource of Walmart has to focus on ensuring that it educates its workforce in all aspects of the business and customers satisfaction among others so that in the end, the employees would have a great impact on customer retention and brand marketing. By availing training opportunities for its employees on topics like how to positively impact sales and customer service significance, the success would be inevitable. And therefore Walmart will be creating a knowledgeable workforce, which is service and customer oriented, thus marketing the brand further which would in return promote the goal of sustaining the company’s competitive advantage.
Resources are also very important in developing and achieving a sustainable competitive advantage. Resources of the company may include capital, land, technology, and labor among others. These resources are crucial to the company’s agenda of achieving sustainable competitive advantage. For instance, when making new ventures, hiring and educating the workforce, upgrading the company systems as well as services among other things, the company strictly relies on its capital to deliver the best. Labor is another crucial resource which keeps the company running and achieving its business goals. Labor makes it possible for the company to earn more than its competitors in the market. In addition, with enough labor, more profit-making activities would be done at ago, time would also be saved thus pushing the company towards achieving sustainable competitive advantage. Land is another significant resource since it would make it possible for the company to expand, building a new store across the globe. With land, the company can aim at reaching a much larger population and therefore land would allow for further expansion thus reaching a wider market. Technology is another crucial aspect of this era. Lacking technological competence may lead the company to have poor results and thus lack competence which would result in its downfall. Employing the current technology like using the internet in its daily operations would ensure that the company keeps on attracting clients and investors worldwide. Resources no matter how much, are very critical when it comes to achieving a common goal which is a sustainable competitive advantage. Utilizing the available resources in the most appropriate way would mean a lot for the business in achieving its global goal.
In the retailing industry, the competition which is high threatens the industry’s attractiveness thus reducing the sector’s players’ profitability. Every day, the level of competition increases becoming fiercer and enormous. Sustaining or achieving sustainable competitive advantage has become a crucial element that the company needs to focus on so as to maintain its above-average profitability status. As for this reason, it is important for the company to be able to amass competitive advantage which will enable it to respond thus compete effectively across the market. Leaders identifying core competencies will enable the company to focus on the key areas which keep them ahead of the competitors and thus be able to horn them so as to remain the leader of the industry. Most importantly, there is a need to respect the company’s mission and vision which the company always works towards for the purposes of achieving the most appropriate results. Therefore, so as to achieve its desired goals, both leaders and other employees in the company strictly need to adhere and work with the company’s mission and vision to achieve the best building on and leading towards them. Understanding the fact that the company exists because of the customer would greatly benefit Walmart ensuring that it maintains its top spot in the retailing business global map. Giving employees room to expand on their knowledge comes with great benefits not only to them, but also to the entire Walmart Inc. family. Resources are also very important in developing and achieving a sustainable competitive advantage. The resources of the company may include capital, land, technology, and labor among others which, if utilized well give the best results. Management of knowledge and utilizing knowledge in the company holds high value and significance; thus a potential foundation of building sustainable competitive advantage.
References
Barton, D., Grant, A., & Horn, M. (2012). Leading in the 21st century. McKinsey Quarterly, (3),30-47.Retrieved from http://www.mckinsey.com/insights/leading_in_the_21st_century/leading_in_the_21st_century
Clegg, S., Schweitzer, J., Whittle, A., & Pitelis, C. (2017). Strategy: Theory and practice . Sage Publications
Gamble, J. E., Thompson, A. A., Jr., and Strickland, A. J., III. (2010). Crafting and executing strategy: Text and readings (17th Ed.). New York, NY: McGrawHill/Irwin.
Jurevicius, O. (2019, January 10). SWOT analysis of Walmart (5 Key Strengths in 2019). Strategic Management Insight . Retrieved from https://www.strategicmanagementinsight.com/swot-analyses/walmart-swot-analysis.html
