Great Deal! Get Instant $10 FREE in Account on First Order + 10% Cashback on Every Order Order Now

Asian Pacific International College Group E Arvind Singh. XXXXXXXXXX XXXXXXXXXX Gurbhej Singh Bhullar XXXXXXXXXX XXXXXXXXXX Jagdeep Singh XXXXXXXXXX XXXXXXXXXX Gurwinder Batth --------------...

1 answer below »
Asian Pacific International College
Group E
Gurwinder Batth --------------
Literature Review............................................................................................
Business development and growing business is tend to face challenges. This is the world of business growing rapidly and as it grows the difficulties and opportunities demand various solutions. It is very important to recognize the challenge and competition as well as to become capable of overcoming common pitfalls in order to continue for the growth, development and success. Generally a business starts with visions and missions of companies and their employees and as it expands it reaches the global market with its competitors or alone. Established business is normally refe
ed to an incumbent and the businesses that works to gain its share and position by advancement and upgrading the services are refe
ed to challengers in the business.
Incumbents are large companies that is powerful and has the ability to gain large share in the market. It is generally refe
ed to leaders in industries. For example, during the end of 2014, Apple would likely be regarded an incumbent based on its sale worldwide (Investopedia, XXXXXXXXXXBut there is a revolution going under the global business. The established incumbent companies are meeting their competitions the new Rapidly developing economies (RDE) based challengers. Challengers are the companies who works with strong motivation in order to obtain the market share of its competitor incumbent by providing large supplies of its products at a competitive price. This fast move start up challengers continues to disrupt incumbent companies. This is not a competition to stay or become a global leader, it is a competition for demands and supplies, suppliers and customers, quest for talent and innovation. But along with threats they
ing opportunities as well which is important for both the incumbent and challenger companies to take and act accordingly. Since many challenger companies are entering the market via RDE, they establish their business on low-cost resources and very rapidly growing large markets (Aguiar; et al., 2006).
Incumbents does have advantages but they are so potent yet very difficult to apply that a few companies use them. When it is time to face challengers the incumbents already has the information of all types of customer. It is very important to segment product needs not only by geographies and demand but also need-based on customers. This customer need-based segmentation makes it harder for the intruders (challengers) and increase their entry ba
iers. But since most of the incumbents acts sturdy on their strategies which provided them success before the challengers' intruding they often are very vulnerable to fall by the challengers (Macmillan; and Selden, 2008).
Incumbents are the champions of the new innovations or technologies, they can characterize their longevity to different aspects such as original successful ideas of their own which they only
ought to the market and exploit them to make profit and stable their financial condition even before the would-be competitors may start preparing to diversify. This stable financial stability will allow them to invest on innovation and development. As time goes by, the incumbents must also upgrade their digital system as it could be one of the important factors that helps the challengers to beat them. For example, due to digital technology advancement, the challenger companies such as Ai
nb and Uber has been winning over the hotels and taxi business respectively. This is because the challenger companies reduce their tangible assets and does most of the business using technology which is less costly (Trapp, 2017).
The challenger business are actually started with a singular determination to disrupt and already established incumbent or other challengers. They have a razor sharp vision and cannot be easily daunted by their detractors. This is necessary as they are motivated to obtain the share of an already established business which cannot be done timidly. And to beat the incumbent they don't just set up for staying in the market only, instead they emphasize and stay subtle towards their competition against the incumbent business. In other words, they don't agree on copying the incumbent business, they stand out in the market by adding and customizing with their own innovation in order to avoid becoming the incumbents shadow (Scrimgeour, 2015).
The challengers mostly exhibits the core characters that happen to played the key role for their development in the global business along with providing them the early access to establish themselves in the business. This gradually allows them to general access of the solid platform of growth. The vision of ambitious owners and founders perfects the performance of these challengers with excellence in pursuit of global leadership by taking up huge risks. They reach out successfully even outside their te
itory and adapt their model accordingly. In order to win the heated competition between them and the challenger companies always exercise their advantages in order to stay advance even before the incumbent might actually considering them a threat or competition in business. Unless the incumbents are vigilant enough to sustain and enhance their opportunities and advantages against the competitive threat from the challengers, they can easily be beaten (Aguiar et al., 2009).
There are various reasons for an incumbent to get beaten by a challenger and one of the most factual one is considered the failure to innovation. And it is a matter of discontent that not only the incumbents might fail to innovate but also to fall behind by not keeping updates and relevancy to other's innovation. They often might consider that since one fail can be a major career destroyer, it is smart to stay on the safe course that is to avoid taking initial risks in their business and technology. But the fact is neglected that mostly huge payoffs are the results of risks taken. For example, the challenger company in business, both Federal and Amazon has taken sacrificial risks for very low profit in order to get the final successful payoff. The incumbent firms also has some difficulty to focus in the future upgrading of their services. For example, "Blackbe
y" came up with a smart phone with its own innovative features but failed to keep them updated and got beaten by the other challengers. But Apple who came up with iPhone proved them wrong by keeping their products and services more advance. There is also some lacking in the incumbent firms in addition to innovation which is their lacking in empowering innovation champions and fostering innovation competitions (Aaker, 2013).
Since the competition has gotten heated up and the incumbents are studying and researching for their development and in other words to stay or win back their positions as leaders the challengers has taken up various opportunities. These opportunities has made a way for them to establish themselves and also to beat up any competition from the incumbents. An exceptional one is the opportunity that is available in the form of partnership with other incumbents which might lead the challenger companies not only to establish themselves but also to reach out beyond their home countries by leveraging their partnered incumbents who has experience already. They are eager to fill any gaps and they are entering the global market faster because of not facing any entry hurdles.
Challengers has much higher risk tolerance than the incumbents which proves to a greater advantage for them. Not only they take opportunities to partner with the incumbents and other challengers to obtain a foothold in the global market but also work with outside partners such as private-equity firms. The strategy here is to overcome any negative challenges and relations might result in success for the both companies. But partnerships that constitute of the relation where both the companies has to perform their best, which normally results in advantage for their setting up in global market can be refe
ed as a win- win situation (Aguiar et al., 2009).
Another strategy is that the challengers always look for optimizing their supply chain to reduce costs and risk of disruption, whereas the incumbents are often a victim of risk disruption in case for innovation. In addition to this reason for disruption, most incumbent companies are not eager to provide incentives that would make the employees work harder for innovation. They are more likely satisfied with their cu
ent profit and customers. As a result of no incentives, there is a lack of innovative ideas and presumably no competition among the employees to work and spend time on innovative ideas, which is considered a well enough reason for the challengers to beat the incumbents (Majamaki and Akpinar, 2014).
Though their financial strategies of the incumbents are getting better to overcome the slow and lengthy process. The companies are now adopting technologies in which they can eliminate the middleman but still transfer money to overseas. Research and evidence say that the challenger companies were normally prone to utilize the "PayPal" service and so was some incumbents. This is a progress for them but not enough to not getting beaten by the challengers (Faktor, 2016).
If the example of "Blackbe
y" is illustrated, the history of mobile phones shows that at one point the ultimate Smartphone was none other than Blackbe
y, the first android prototype. The story of "blackbe
y" is known as "An incumbent business being disrupted by sprightlier newcomers". After Blackbe
y was launched the other challengers started to improvise their Smartphone while keeping them Android and started making them large and more user friendly (Savov, XXXXXXXXXXA worthy challenger to Blackbe
y can be considered the Samsung galaxy series. They not only targeted the business users but also covered up every potential market segment of customers. While challenging the Blackbe
y's sale, Samsung kept its other products in line, increased its sale by only launching the Galaxy series. And it did not stop there, when the other challengers came to the market Samsung kept updating its product by investing in innovation or upgrading the ideas and further released the Samsung Galaxy Pro and other Galaxy tabs (Shaer, 2011).
To overcome this Blackbe
y should have been started to make their future Smartphone as supreme as
Answered Same Day Aug 22, 2020


Sarabjeet answered on Aug 23 2020
151 Votes
Running head: Strategic Analysis
Strategic Analysis
Strategic Analysis
Student Name
University Name
Unit Name
Introduction    2
Walmart PESTLE Analysis    2
SWOT Analysis    4
7’S Analysis    5
Porter’s Five forces Analysis    6
TR Technology Cycle    7
3 Phases of Innovation Model    8
ent situation of Wal-Mart    8
Solution for Wal-Mart to re-emerge in the new Market    9
Conclusion    10
References    11
The secret of Amazon's success is simple: the company is very concerned about its customers and is always looking for ways to offer a wide range of products at very low prices while improving service in key areas such as delivery times. Unlike most other companies that operate differently, management is willing to abandon cu
ent profits to provide the best customer experience, and most customers believe that Amazon's online retail is far superior to rival Wal-Mart.
Walmart PESTLE Analysis
Political Factors: Walmart is cu
ently experiencing some problems with other global markets. In some countries, such as India, there are limitations on overseas direct investment in the multi-
and retailing. This state is unfavourable for Walmart’s expansion plan.
Economic Factors: Purchasing power of US customers is considerable, which bodes well for Wal-Mart's business in the US. Still, the subsequent effects of the recession and international economic slowdown have not provided the ideal scenario for their business. But, the economic growth of the developing countries is one positive sign of Walmart international business.
Social Factors: Wal-Mart's global expansion, it might face some social challenges. People in many countries do not like traveling to purchase their daily groceries. As a result, it translates into Wal-Mart's business losses because it cannot open stores in every corner. In some countries, it must face opposition from local retailers because it poses a threat to its small retailers. Wal-Mart cannot adjust to the preferences of customers, so they have to leave these markets (Ansoff, 2014).
Technological Factors: Technology is widely used in the global retail industry, and Walmart is leveraging its strengths in supply and distribution and online sales.
Environmental Factors: Wal-Mart has no unfavourable environmental factors when conducting global business.
Legal Factors: Walmart facing numerous lawsuits filed by staff members on various human resources issues that hinder a company’s
and image as an employer.
SWOT Analysis
Market Capitalization: Walmart’s market capitalization is $208.37 billion, which the highest in the integrated store industry. This makes them a largest retailer company with a very good financial position and attractive to investors.
Human Resource Capital:  Talent is the key to Wal-Mart's business, investing time and money to train talent and retain developers. The policy of sharing stocks and profits with employees is another important advantage that distinguishes them from other organizations (Cardenal, 2016).
 Exit from German and South-Korean markets: Walmart had to withdraw from Korean market as it could not satisfy the tastes of local consumers, opening more retailing outlets and being unable to compete with Korean competitive discount stores.
 Product Recall: Wal-Mart has recently participated in several product recalls, such as the "Holiday Times" candlestick and the "Hip Charm" keychain. Frequent product recalls indicate that quality control measures are not rigorous. Global expansion and acquisition: Opportunity to take over, merge or establish strategic alliances with.
Opposition and resistance from communities:  Small retailers wo
y that the low prices offered by Wal-Mart may force them to go bankrupt,
Negative Brand image: Kathie Lee Brand's bad media exposure also affected Wal-Mart's image to some extent.
Intense Competition:  Wal-Mart is facing fierce competition from many companies in the global retail market, including Amazon
and portfolio:  Wal-Mart offers a wide range of private label products. The company plans to...

Answer To This Question Is Available To Download

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here