Competitve Capability - Research Paper Example

Although it is the market leader in retail industry, Wal-Mart now faces several challenges as competition increases and its superstore business model becomes irrelevant (Banjo, 2014). B. The main weaknesses are weak online and e-commerce strategy, the superstore retail model is losing ground among customers, limited global presence and competitiveness and lack of strategic customer relationships. The SWOT analysis, SPACE matrix analysis and BCG matrix provides a glimpse into the internal capabilities of Wal-Mart and the external threats and weaknesses, how to align internal capabilities to external environment and how to leverage a Wal-Mart’s strategic business units (Kozami, 2002).

The retail industry in the U.S. continues to have trouble amidst the growing competition, maturing markets and entry of global retailers. Although Wal-Mart retains the market leadership position, because of its large market share and low-cost market leadership position, the growing competition and the increasing international expansion strategies have been a cause of concern even as its superstore model looses ground among retail consumers. The top management at Wal-Mart is therefore considering whether to maintain the same strategies or implement new strategies that would not only hold onto the market share but also drive performance and growth even in future.

The first lesson learned from this study is that internal capabilities and strength are very important in determining, implementing and ensuring success of competitive strategies. The SWOT analysis is an effective tool for determining the internal strength and weaknesses and identifying the external opportunities and threats (Markgraf, 2014). An analysis of the external environment using the Porter’s five-factor model suggests that the stiff rivalry in the retail industry remain a key driver for strategic