Organizational and Innovative Strategy of Walmart - Essay Example

Other strategies focused on include low-cost leadership that reduces the costs faced by suppliers and ultimately reduces the costs to the consumers of their products. Strategy is done through the application of Porter’s five force model to reduce supplier power, which enables them to price their goods at a lower price than competitors in the market.

One of the factors that have also helped Wal-mart is innovation and change management. With an embracement of change through creative ideas, Walmart can stay before other competitors by continually changing its strategies to fit the market. As already mentioned, using a business model based on cost leadership has also helped Walmart. This strategy helps them manage their suppliers and share business risks with them, thus reducing costs and ultimately the final price faced by the customer. However, despite the market leadership enjoyed, Wal-mart has continually lost customers to its competitors who have attractive prices and better convenience. This can be related to problems of managerial capability, which can be overcome by innovation. Walmart needs to stop focusing a lot on meeting shareholders’ needs and instead focus more on customers’ needs.