Strategic Initiative Paper

Walmart Strategic Initiatives
Strategic Initiative Paper Walmart is focused on creating a detailed strategic and financial initiative plan that will take the company to the next level in consumer satisfaction, market growth, and global responsibility. The aim of this paper is to investigate Walmart’s EDLP (Every-Day-Low-Price) strategic initiative plan. Also the creation of other strategic and financial plans that aid in the EDLP plan and the impacts on cost, sales, and the risks associated with those strategic initiative plans. In today’s business environment, companies must design and implement strategic initiatives to prevent possible loss and also overcome the tough economy that all consumers and corporations are currently
Prices are starting to drop every day with their new EDLP strategy (Walmart.com, 2011) promise to their consumers. The EDLP strategy is different from Walmart’s previous strategy of event shopping. Event shopping means that the customer can shop Walmart to pick up anything for any type of event, whether it is a birthday, picnic, car problems, bed, bath, house, and garden products. However, this event shopping initiative failed to promote and advertise all that the Walmart Stores encompassed such as groceries, frozen foods, fresh meats, and produce. The Walmart consumer can do all of his or her shopping in a single location for any item desirable. The EDLP marketing strategy means Walmart will not be heating up their ads during the holidays or for other events; however, Walmart is giving a value to their customers every day of the week. Walmart’s idea is that they will continue to be the leader in the grocery business but will be the leader in total retail customer satisfaction overall. The plan of attack is to make all consumers who purchase goods feel like there is one place a consumer can go to obtain all of their goods at a great value. The place to shop for all consumers needs is definitely Walmart. The financial burden could prove to be costly for Walmart if the strategy does not work. Early signs prove that the program is working. Walmart’s sales are up with their largest customer
Consumers are generally willing to shop in a place that has the lowest prices and offers the largest variety of products. Those consumers are also additionally guaranteed the lowest price possible against Walmart’s competitors. The affects of the EDLP initiative have overwhelming proved positive on the sales.
Risks
Financial impacts on the initiative taken by most companies are that the return on equity is low when evaluating the first five fiscal periods. Some companies do not meet the market expectations, particularly in the corresponding store sales, net revenues, operating margins, and earnings per share, which can resultantly decline the market price of stock. In any business strategy and initiative there will be an uncertainty and no guarantee for success. The outcome of a strategic initiative can have either a positive or negative outcome, especially in the today’s economic slump, no results can be foreseen. The current financial position of a company, if the business does not successfully executed a new strategic initiative, or if the change in direction does not reach anticipated outcomes, an organization may encounter a difficult impact on their business and financial results. Fortunately, Walmart has been successful even through difficult economic