Strategic Management

For each strategy, I want to see the explanation how each strategy works.

Such as “Is it implemented in store or online store only?”

Strategy 1: Autopay Mobile App (Intensive strategy – Market development in China, and Market penetration in U.S.)
Strategy 2: QR coupon code (Intensive strategy – Market penetration)
Strategy 3: Organic supply acquisition (Integration strategy – Backward integration)
QSPM Score: 4.88/8.0

The new Autopay mobile app will be released in the United States and China to take advantage over the opportunities (see appendix B). The U.S. mobile penetration per 100 people are forecasted to reach 97.69 in 2017 (Country Statistics, MarketLine, 2016). Walmart market position has strengths with the integrated cost leadership differentiation, similarly, the online retailing can utilize Walmart market leader with large scale and wide product assortment following market. The customer centric business operation is satisfied with a foreseen increase in inventory turnover ratio.

The release can improve the liquidity ratios, asset utilization, and profitability ratios while the Walmart can draw growth from international operation – China via online retailing – market development. Moreover, the news would enhance Walmart goodwill so that investors can take this strategy into account when the legal proceedings are in the settlement process. Besides, the E-commerce service is a fast growing market with intense competition, so Walmart can’t ignore this threat without any initiative.

QSPM Score: 2.67/8.0

In China, people utilize the mobile phone scanning feature through social network service such as WeChat app or Sina Weibo to increase volume of secured transactions. QR code (abbreviated from Quick Response Code) is the trademark for a type of matrix barcode (or two-dimensional barcode). A barcode is a machine-readable optical label that contains information about the item to which it is attached. This code is appealing to large group of youth who are quick adaptor of advanced technology. However, Walmart can utilize this code for different groups besides taking advantage of the opportunities. For example, the employees can access to a particular QR code for a special coupon rate. This uniqueness can promote the increase in sales because they are excited to try the new way of doing purchases. The difference between in-store barcode and online-store QR can bring interesting experiences to customers.

QSPM Score: 3.49/8.0

The increase awareness of organic food is causing a significant demand by the American, however, the pricing from the suppliers are higher than non-organic food. Walmart can integrate the suppliers to drive the cost down.

20171009001058walmart_case (1)




Solution Preview

SWOT Matrix Analysis
Three strategies were established to determine the score comparisons for Quantitative Strategic Planning Matrix (QSPM). The first approach was the Auto pay Mobile App which was developed as an intensive strategy for market development. International expansion as one of the strategies was used to bring about growth. This can be done through establishments of new outlets in different countries globally.

(669 words)

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