Discussion Board 1 BUSI 601
Walmart and Benchmarking Discussion Board 1
Liberty University
As the world’s largest retailer, Walmart has set the bar in the cost leadership strategy following its motto “Every Day Low Price”. In order to be competitive, other retailers have to strive to differentiate or match their prices and they look at Walmart as a benchmark (Yanrong, 2013). Being the leader is not good enough though. Walmart must remain dissatisfied with their current results. Melanie Hicks writes, “when things go according to plan, Tennessee companies have, when they are market leaders, is out of complacency” (2010). In Organization Theory and Design, Richard Daft defines Benchmarking as, “…the process of persistently measuring products, services, and practices against tough competitors for other organizations recognize as industry leaders” (2013). Even though Walmart is, in essence, a benchmark in their respective industry, benchmarking itself against other retail giants would benefit the company especially in areas such as technology so as to continue to challenge the company to grow and outperform their competition. Mike Duke, CEO of Walmart Stores Inc, stated that, “Technology will drive all sorts of changes, especially in our industry. And our competitors will be even more nimble and innovative” (Duke, 2010). As Walmart is a Cost Leader by strategy, technology innovation is a critical success factor for the company. By using advanced technology in its operations, it would help them in becoming more cost effective as well as keeping them competitive in the international market (Duke, 2010). As technology becomes the most “fundamental of all business changes in recent years” (Blocher, Stout, Juras & Cokins, 2013), Walmart is on schedule to remaining the benchmark within its market throughout the world.
References
Blocher, E., Stout, D., Juras, P., & Cokins, G. (2013). Cost management: a strategic emphasis (6th ed.). New York, NY:
Liberty University
As the world’s largest retailer, Walmart has set the bar in the cost leadership strategy following its motto “Every Day Low Price”. In order to be competitive, other retailers have to strive to differentiate or match their prices and they look at Walmart as a benchmark (Yanrong, 2013). Being the leader is not good enough though. Walmart must remain dissatisfied with their current results. Melanie Hicks writes, “when things go according to plan, Tennessee companies have, when they are market leaders, is out of complacency” (2010). In Organization Theory and Design, Richard Daft defines Benchmarking as, “…the process of persistently measuring products, services, and practices against tough competitors for other organizations recognize as industry leaders” (2013). Even though Walmart is, in essence, a benchmark in their respective industry, benchmarking itself against other retail giants would benefit the company especially in areas such as technology so as to continue to challenge the company to grow and outperform their competition. Mike Duke, CEO of Walmart Stores Inc, stated that, “Technology will drive all sorts of changes, especially in our industry. And our competitors will be even more nimble and innovative” (Duke, 2010). As Walmart is a Cost Leader by strategy, technology innovation is a critical success factor for the company. By using advanced technology in its operations, it would help them in becoming more cost effective as well as keeping them competitive in the international market (Duke, 2010). As technology becomes the most “fundamental of all business changes in recent years” (Blocher, Stout, Juras & Cokins, 2013), Walmart is on schedule to remaining the benchmark within its market throughout the world.
References
Blocher, E., Stout, D., Juras, P., & Cokins, G. (2013). Cost management: a strategic emphasis (6th ed.). New York, NY:
References: Blocher, E., Stout, D., Juras, P., & Cokins, G. (2013). Cost management: a strategic emphasis (6th ed.). New York, NY: McGraw-Hill/Irwin. Daft, R. L. (2013). Organization theory & design (11th ed.). Mason, OH: South-Western Cengage Learning. Duke, M. (2010). Next Generation Walmart. Vital Speeches of the Day, 76(9), 425-427. Hicks, M. (2010). Accounting for Decision Making: A Study Guide. Raleigh, NC: Synergystics Inc. Yanrong, Y. Strategy Adjustment of Walmart China. Management Science and Engineering, 7, 88-93. Retrieved June 25, 2013, from http://search.proquest.com.ezproxy.liberty.edu:2048/docview/1502699868?pq-origsite=summon