Business Strategy: A Comparison of Walmart and Microsoft - Essay Example

It is the hope of this author that such an analysis will help to engage the reader with a clear and definitive understanding of how the associated business strategies in question impact the day-to-day decision-making structure, mission, and a general understanding of how the firm sees itself within its competitive environment (Singh, 2011). In short, the general perception that must be attained is with regards to the fact that a business strategy in and of itself is capable of differentiating a firm in almost the same degree and extent that different products or services differentiate one firm from another. In so much, even though Walmart and Microsoft are mega-corporations that garner a massive degree of profits each and every quarter, the products and services that they sell are nearly as diverse as the business strategy by which they operate (Mithas et al, 2013).

Naturally, with respect to Walmart, the business strategy that is engaged with is that of a low-cost provider strategy. This ultimately entails is a situation in which the key targets that Walmart seeks to leverage ours with regards to price sensitivity, extreme price competition, segmentation within markets, the optimization of economies of scale, emphasis upon bargaining power, focusing upon low costs of input, offering incentives, reducing material, personnel, and shipping costs, vertical integration, and a variety of other tools to accomplish such an end (Rong et al, 2013).  In such a way, a nearly continual emphasis is made upon seeking to cut each and every available cost corner to provide the minimum price to the consumer; due to the fact that without such a continual war on prices, the ultimate appeal that the firm is able to generate would necessarily be non-existent.

Comparatively, Microsoft - although one of the most profitable firms within his United States - pursues quite a different business strategy entirely.  Accordingly, Microsoft pursues what is known as a broad differentiation strategy (Rumelt, 2011). Such a type of strategy is often employed by firms that seek to target a diverse range of needs and preferences, value-conscious consumers, premium price products, and buyers who might be loyal to a particular brand. As a function of such a complex and interwoven level of needs and targets such an approach must take, it should be the understanding of the reader that this broad differentiation strategy is effective for many types of firms (Bharadwaj et al, 2013). In such a way, the strategic inputs that are available to a firm or business that seeks to engage with a broad differentiation strategy are as follows: special water availability, customer service, marketing intensity, defensive strategies, continuous improvement an organization, constant value signaling, uninterrupted product availability, as well as unique tangible and intangible benefits.  Due to the fact that this is something of a “catch-all” strategy, it can be understood that a very high number of firms, both small and large, integrate with this very approach (Bradley et al, 2011). Although it may be tempting to believe that the likes of Microsoft or Walmart have achieved their degree of success based upon the fact that they had leveraged business strategy which few others have been brave enough to attempts, the fact of the matter is that they merely perfected and capitalize upon the means by which these strategies can be leveraged to halt their respective firms to the pinnacle of business success (Lui, 2013).

It would be foolish to discuss business strategy without the least referencing business ethics. Due to the fact that firms are oftentimes driven to maximize profitability and engage further markets at all costs, it is oftentimes forgotten that key ethical considerations should also be remembered (Alsoboa & Aldehayyat, 2013). Although both Walmart and Microsoft have been the target of much negative publicity, the ultimate driving force behind this is the fact that they have sought to choke out any and all competition and exhibit the most powerful business strategy within the current environment. Although this in and of itself is not a bad thing, is oftentimes the case firms stray over the line of ethics in seeking to accomplish this. As such, the antitrust lawsuits against Microsoft and the many situations in which Walmart has been found to undercut key humanitarian issues are evidence of this.