Respond to at least two of your colleagues’ postings in one or more of the following ways: · Compare your initial posting with that of your colleague, including insights on the role of the strategic planning cycle. · In what ways do you agree or disagree with your colleague on competitive differentiation, and how can this enhance/expand on your understanding of competitive advantage? · Provide a suggestion for an additional competitive advantage strategy to better support your colleague’s posting, including a rationale for your suggestion. Please note that, for each response, you must include a minimum of one appropriately cited scholarly reference. Herbert Most Useful Assessment Phase For Walmart’s Competitive Advantage Strategic planning can be referred to as an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue a certain strategy (Bryson, 2018). Strategic planners, who involve many parties, best execute this strategic planning and research sources in their analysis of the company and its relationship to the environment in which it competes. For retail giants like Walmart, strategic planning is a process/cycle involving inputs, activities, outputs and outcomes. The cycle should provide inputs for strategic thinking, which will guide the actual strategy formation. The end result should be a diagnosis of the environment and competitive situation, guiding Walmart on what should be accomplished, and key initiatives or action plans for achievements. Porter (1980) explained that formulation of competitive strategy includes consideration of four key elements: Company strengths and weaknesses; Intrinsic values of the key implementers; Industry opportunities and threats, and; Broader societal expectations.  As the largest retailer in the world (Dyer, Godfrey, Jensen, & Bryce, 2016)), Walmart in its current state of business would be better off focusing on the outputs more than the other phases of strategic planning. This phase is preoccupied with documenting and communicating the company’s strategy and how it should be implemented, sometimes referred to as the strategic plan. Walmart’s strategy should include a diagnosis of the competitive situation, a guiding policy for achieving the company goals, and specific action plans to be implemented.  Walmart may use a variety of methods of measuring and monitoring progress towards the objectives and measures established, such as a balanced scorecard or strategy map. As part of the goal setting activity, Walmart may also want to robustly plan its financial statements for several years when developing their strategic plan.  Walmart’s Competitive Differentiation From its Competitors In business, especially the retail industry, competitive advantage can be referred to as the ability gained through attributes and resources to perform at a higher level than others in the same industry or market (Powell, 2001). Walmart can have a com.

1. Respond to at least two of your colleagues’ postings in one or
more of the following ways:
· Compare your initial posting with that of your colleague,
including insights on the role of the strategic planning cycle.
· In what ways do you agree or disagree with your colleague on
competitive differentiation, and how can this enhance/expand on
your understanding of competitive advantage?
· Provide a suggestion for an additional competitive advantage
strategy to better support your colleague’s posting, including a
rationale for your suggestion.
Please note that, for each response, you must include a
minimum of one appropriately cited scholarly reference.
Herbert
Most Useful Assessment Phase For Walmart’s Competitive
Advantage
Strategic planning can be referred to as an organization's
process of defining its strategy, or direction, and making
decisions on allocating its resources to pursue a certain strategy
(Bryson, 2018). Strategic planners, who involve many parties,
best execute this strategic planning and research sources in their
analysis of the company and its relationship to the environment
in which it competes. For retail giants like Walmart, strategic
planning is a process/cycle involving inputs, activities, outputs
and outcomes. The cycle should provide inputs for strategic
thinking, which will guide the actual strategy formation. The
end result should be a diagnosis of the environment and
competitive situation, guiding Walmart on what should be

2. accomplished, and key initiatives or action plans for
achievements. Porter (1980) explained that formulation of
competitive strategy includes consideration of four key
elements: Company strengths and weaknesses; Intrinsic values
of the key implementers; Industry opportunities and threats,
and; Broader societal expectations.
As the largest retailer in the world (Dyer, Godfrey, Jensen, &
Bryce, 2016)), Walmart in its current state of business would be
better off focusing on the outputs more than the other phases of
strategic planning. This phase is preoccupied with documenting
and communicating the company’s strategy and how it should
be implemented, sometimes referred to as the strategic plan.
Walmart’s strategy should include a diagnosis of the
competitive situation, a guiding policy for achieving the
company goals, and specific action plans to be implemented.
Walmart may use a variety of methods of measuring and
monitoring progress towards the objectives and measures
established, such as a balanced scorecard or strategy map. As
part of the goal setting activity, Walmart may also want to
robustly plan its financial statements for several years when
developing their strategic plan.
Walmart’s Competitive Differentiation From its Competitors
In business, especially the retail industry, competitive
advantage can be referred to as the ability gained through
attributes and resources to perform at a higher level than others
in the same industry or market (Powell, 2001). Walmart can
have a competitive advantage by providing the same value as its
competitors (such as Target, Kmart, Dollar Tree…) but at a
lower price, or by charging higher prices (than Aldi) by
providing greater value through differentiation. Sharp and
Dawes (2001) wrote that competitive advantage results from
matching core competencies to the opportunities. Michael Porter
further reiterated that cost advantage and differentiation

3. advantage are the two ways in which a company, like Walmart,
can achieve competitive advantage over its rivals. Walmart gets
a cost advantage when it provides the same products and
services as Target and Dollar Tree, albeit at a lesser cost. For
example, from the year 2003, Walmart had sales-per- square-
foot of $440, and Target had $249 but by 2012 Walmart’s sales-
per-square-foot had dropped to $428, and Target’s had risen to
$302 (Dyer et al, 2016). This is in line with what Sharp &
Dawes (2001) explained as differentiation advantage – when a
business provides better products and services than its
competitors.
Given the prevailing technological advancements, Walmart
should halt or even cut down on the physically large retail
establishment, but strategically focus on opening fewer stores as
a deliberate choice tap into the e-commerce. This should be
adopted in a bid to amplify its e-commerce muscles challenging
its currently few competitors such as Amazon. That said, a
physical presence is always a critical key to winning in online
retailing and sales (Bakos, 2001). For example, this strategy can
certainly parallel Amazon’s Whole Foods acquisition strategy.
Apparently there have been big increases in the number of
consumers buying online and pick up in-store. The fact that
physical stores continue to bring in the bulk of sales should
sharpen the focus for Walmart: the company needs to retain and
attract in-store shoppers while optimizing operations to earn
their share of e-commerce dollars.
Assessment of Walmart’s Value Proposition
Value proposition can be referred to as a promise of value to be
delivered, communicated, and acknowledged. It is also a belief
from the customer about how value or benefit will be delivered,
experienced and/or acquired (Lindic & Marques, 2011).
Walmart is famously known of its innovative thinking, service

4. leadership, and their latest slogan of a commitment to save
people money so they can live better (Dyer et al, 2016).
Walmart excels in its values by creating efficient supply chain
management and moving products from suppliers to buyers in a
timely manner. Walmart is a unique company in terms of its
impact and influence on changing corporate business and labor
practices. The size of Walmart is nearly 4,761 stores, which
makes them a convenient shopping mecca for American
consumers. Walmart’s strategy of selling a variety of products
at discount prices has enabled the company to gain greater
control of the retail industry and to demand manufacturers
lower their prices (Dyer et al, 2016). The company’s efficiency
and productivity is more profitable because of their
sophisticated system and information technology to track
inventory. Also, Walmart boosted efficiency and productivity
far ahead of their rivals by creating a new management
paradigm for their particular industry.
References
Bakos, Y. (2001). The emerging landscape for retail e-
commerce. Journal of Economic Perspectives, 15(1), 69–80.
doi:10.1257/jep.15.1.69
Bryson, M. J. (2018). Strategic planning for public and
nonprofit organizations: A guide to strengthening and sustaining
organizational achievement (5th ed.). New York City, NY: John
Wiley & Sons.
Dyer, J. H., Godfrey, P., Jensen, R., & Bryce, D. (2016).
Strategic management: Concepts and tools for creating real
world strategy. Hoboken, NJ: John Wiley & Sons.
Lindic, J. & Marques, C. (2011). Value proposition as a catalyst

5. for a customer focused innovation. Management Decision,
49(10), 1694–1708. doi:10.1108/00251741111183834
Powell, C. T. (2001). Competitive advantage: Logical and
philosophical considerations. Strategic Management Journal.
22(9), 875–888. doi:10.1002/smj.173
Sharp, B. & Dawes, J. (2001). What is differentiation and how
does it work. Journal of Marketing Management, 17(1), 739-59.
doi:10.1362/026725701323366809
Dawn
Role of Strategic Planning
Knowing and understanding the similarities and differences
between competitors can be advantageous for business
managers, marketers, advertisers, and consumers. Many
businesses today are involved in social networking and
philanthropic endeavors which require companies to build
strong, social cultures. Retailers, in particular, perform many
functions. They buy and assemble goods; store products; sell
products to the customer; but the primary focus of any retailer
is to maximize on customer satisfaction by delivering quality
products and quality services (Harvard Business Review, n.d.).
As competition is inevitable, strategic planning becomes
imperative. Strategic planning can concisely be described as
the vehicle which drives or guides organizations to optimize
their acquisitions and allocation of resources, thereby helping
organizations obtain and maximize business goals and
objectives (Allison & Kaye, 2015).
The role of strategic planning is significant because it outlines

6. the most systematic and structured way to utilize valuable
resources and leverage the company's strengths. Moreover, the
strategic planning process is also about alignment and
commitment. It is vital that the plan be well communicated
with organizational team members and that stakeholders are
fully engaged (Dyer, Godfrey, Jensen & Bryce, 2016). It is
through a well-executed business strategy that a company can
not only gain but sustain competitive advantage (Dyer et al.,
2016).
Wal-Mart's Competitive Advantage and the Strategic Planning
Cycle
During the Retail Revolution of the 1960’s, Wal-Mart had a
humble beginning in 1962 when Sam Walton opened the first
Wal-Mart store in Rogers, Ark. Seeking to prioritize efficiency
while bringing down costs has been the mastery of Wal-Mart
and its operational excellence (Corporate Wal-Mart,
2017). Wal-Mart has been relentless pursuit in passing down
low costs to the consumer. Therefore, they continue to embrace
technology and become innovators in the way stores track
inventory and re-stock their shelves allowing them to cut costs
(Tradegecko, n.d.).
The Strategic Planning Cycle can be summarized in five stages:
1) Develop the mission; 2) Analyze and construct the
organization's SWOT analysis; 3) Formulate strategy based on
SWOT analysis findings; 4)
Competitor Differentiation (Wal-Mart and Target)
Target built a company brand, focusing on ‘hitting the center of
the bullseye’, in terms of retail goods, services, commitment to
the community, price, value and overall experience (Corporate
Target,2017). Target continues to be a strong competitor as a
reputable, mass-market retailer. Target found its niche market
in focusing on home products and apparel. Their pricing
represents high-quality products, services, and advertising,
while successfully catering to those who desire trendy

7. merchandise at affordable prices. Target began their
philanthropic endeavors in 1946, which were focused on giving
back to the community and has continued to transition into the
world of social media and social networking structures
(Corporate Target, 2017). In taking great pride in affirming
their purpose and values through service and social networks
while utilizing unique marketing and advertising strategies to
express their identity, target continues to be a strong competitor
of Wal-Mart.
Although both Wal-Mart and Target are discount chains, their
greatest differentiation can be seen in their pricing structure and
target market (Recomparison, n.d.). Wal-Mart's niche market
are those whose median income ranges between $30,000 and
$60,000, and who value low costs over value, whereas Target
services a niche market whose income is over $64,000 and who
seek trendy home decor and fashionable apparel at more
reasonable prices than full-line retailers (CBS News, 2012).
Wal-Mart's Target Market and Competitive Advantage
Wal-Mart's target market plan has been successful in honing in
on small towns that were generally left out and securing their
competitive advantage by purchasing bulk items and minimizing
operational costs in order to pass down low costs to their
devoted clients.
Wal-Mart's Value Proposition
Wal-Mart has just about perfected the idea of perceived value,
which a vital element in strategic management (India, n.d.).
Wal-Mart's customers are drawn to the advertising of low
prices, as well as the ability to purchase just about anything
they need in a one-stop-shop. Wal-Mart is also listening to
their customer's cry for convenience and services, as the now
offers online grocery shopping and reserved pick-up times in
many locations. I believe Wal-Mart's value proposition in
pricing structure is legitimate, but the findings are
disheartening. According to Tabuchi, an analyst for the New

8. York Times, Wal-Mart is not only known as the nation's largest
retailer but also the biggest importer (2015). Which is the main
reason why they can sell much of their products at such low
costs. Wal-Mart's imports tallied to at least $49 billion only 5
years ago (Tabuchi, 2015), Wal-Mart acknowledged the concern
of economists and has committed to increasing American-made
products by $50 billion over the next ten years (Tabuchi,
2015). The litmus test will come to see how and if, their
product and service pricing will change over the next few
years. Only time will tell.
References
Allison, M., & Kaye, J. (2015). Strategic planning for nonprofit
organizations: A practical guide for dynamic
times. Retrieved from https://ebookcentral.proquest.com
CBS News. (2012). Walmart and target: A tale of two discount
chains. Retrieved from
https://www.cbsnews.com/news/walmart-and-target-a-tale-of-
two-discount-chains/
Corporate Target. (2017). Corporate Responsibility. Retrieved
from https://corporate.target.com/
Corporate Walmart. (2017). Our history. Retrieved
from http://corporate.walmart.com/our-
story/our-history
Dyer, J. H., Godfrey, P., Jensen, R., Bryce, D. (2016). Strategic
Management: Concepts and Tools for
Creating Real World Strategy, 1st Edition. [MBS Direct].
Retrieved from
https://mbsdirect.vitalsource.com/#/books/9781119134817/
Harvard Business Review. (n.d.) Why great companies think
differently. Retrieved from https://hbr.org/2011/11/how-great-
companies-think-differently
India, R. (n.d.) Evaluating value proposition for Wal-
Mart. FTMS Global, p. 12. Retrieved from
www.academia.edu/9881821/value_proposition_for_Walmart
Recomparison . (n.d.). Walmart v. Target. Retrieved
from http://recomparison.com/comparisons/100217/walmart-vs-

9. target/
Tabuchi, H. (2015). Walmart's imports from China displaced
400,000 jobs, a study says. Retrieved from
www.nytimes.com/2015/12/09/business/economy/walmart-
china-imports-job-losses.html
TradeGecko. (n.d.) Walmart’s successful supply chain
management. Retrieved
from https://www.tradegecko.com/blog/incredibly-
successful-supply-chain-management-walmart