In no less than 200 words reply to the following statement:
Walmart is one of the world’s largest retailer and private employer. For many years it has established a highly profitable business positioned on its low-cost strategy. They offer everything from electronics, furniture, household supplies, clothing and groceries. Walmart has taken on a new strategy, curbside pickup for groceries. Customers order groceries online and pick them up for free without having to leave their car and go inside the store. Grocery pickup services from Walmart and others are becoming a lifesaver for busy shoppers who want to save time. Walmart offers grocery pickup as long as the consumer spends a minimum $30. Amazon uses a home delivery method in the grocery market.
Both Walmart and Amazon have figured out how to be a pioneer in grocery delivery services. The 5 p’s of strategy are plan, pattern, position, perspective and ploy. Walmart’s curbside service is a strategic ploy. “A strategic ploy is a specific move designed to outwit or trick competitors. Ploys often involve using creativity to enhance success” (Mastering, 2011). Walmart’s ploy against Amazon is offering a consumer to drive up to the store, get their groceries loaded by employees, and leave. Amazon’s ploy is offering home delivery.
Some issues with Walmart’s curbside service are if the consumer is buying a large amount of groceries or have very specific dietary needs, they may be better off going inside the store and purchasing. Ordering is done online or through an app. So, if the item requested is not available, the shopper will substitute with a different brand or similar item. Having a large quantity of groceries, the shopper may leave out items. Also, the shopper may be in a rush and not really search for the best dates on meats and the best-looking fruits and vegetables. Amazon’s home delivery brings issues of fresh products and delivery time.
The curbside service strategy has brought profit and new customers for both Walmart and Amazon “Good strategy formulation focuses on creating value by satisfying the needs and wants of the market place better than anyone else” (de & Pearce 2015). Both companies must conduct a SWOT analyze to maintain an ever-changing system. Emerging risks of other retail stores using the strategy creates more competition. “Strategic management means the change and change have to correspond with business culture” (Yakup & Zeynep, 2016). Strategic management supports the influence of culture and helps in carrying out a corporation’s missions and visions.