Susan Graham Phase 4 Individual Project Colorado Technical University MGM465-1301B-06 Business Strategy Instructor: James Taylor Abstract For this paper I will discuss the purpose of being successful in an existing highly dynamic and competitive business environment; how it is essential for the business organizations to undertake a number of different types of business strategies. The prime quest of any strategic steps of the business organization is to achieve long terms goals and ensuring success, growth and sustainability within the market place (Haberberg & Rieple, XXXXXXXXXXIn this regard, the paper aims to reveal the growth strategy availed by the US based retail giant, Walmart. Moreover the paper will also evaluate the applicability and effectiveness of growth strategy of the business organization. Company History Walmart is one of the giant players in the global retail business industry. The company is the third largest organization as per the fortune 500 companies list of 2012. The company is also one of the largest employers in the world having more than 2 million employees worldwide. Currently the company operates in more than 27 countries with more than 10,700 stores under 69 different brand names. The company operates more than 10,700 stores across the America, Asia, Brazil, and Canada etc. However, still 51% of the company comes from the US grocery business, which is the home market for the company. The company primarily deals in the retail business (About Us, XXXXXXXXXXThe primary value and mission statement of the company can be termed as “"We save people money so they can live better."”, which reflects the commitment of the company to its customers (Our Story, XXXXXXXXXXCorporate goals and Strategy of the organization In order to be successful within the market place, it is quite essential for the company to have an effective corporate goal. In this regard, the corporate goal of Walmart states that the company wants to be an international retailer by expanding its business activities across different crucial and untapped business locations. Along with this, the company also wants to be sustainable by having a rich business portfolio (Our Story, XXXXXXXXXXFor the purpose of achieving such corporate goals, the company undertakes seven part strategy for its business operations. 1. To intensify the core retailing business within it’s the most profitable market, i.e. US by enhancing the quality of different products and service offerings 2. To expand its business to different international locations and online market place 3. To make its presence strong enough in other non food business ventures 4. To intensify the retail related services across its various market places 5. To enhance the standards of corporate social responsibilities own by the company to that a distinguished image of the company in the eyes of customers can be created 6. To create highs value brands so that the company can counter the competition provided by different closed competitors 7. To develop a team for the purpose of ensuring the quality of services delivered to the customers in order to enhance the overall values of the operations. Growth Objectives for the organization For the purpose of ensuring the success of the company within the market place, there is a need of setting some growth objectives. Some of the crucial growth objectives are listed as below: 1. To expand its business in the different untapped but highly potential market places 2. To enhance the market and business portfolio of the company 3. To establish it as highly valued international brand 4. To minimize the impact of the external environmental risks, such as increasing competition, and global economic dynamics. 5. To make changes it is existing product offering as per the demand of the different markets. Growth strategies In order to be successful, there are some of the crucial growth strategies considered by the business organizations. Some of the crucial growth strategies can be presented as below: 1. Market Development Market development strategy is strategy that prompts the company to expand itself in the new market. In the conditions when the domestic market is full of competitors, the company is required to find some new market places for the purpose of attaining long term strategic advantages. In the diversification strategy, the business organization searches for the potential but untapped geographical locations for the purpose of expanding its business activities. This strategy is suitable for the business organizations which have significant amount of resources. On the basis of the available resources, the company can take risk of expanding into the new markets (Hitt, Ireland & Hoskisson, XXXXXXXXXXDiversification The second growth strategy is related to the diversification. In this strategy the company drives expansion into new market places with several new product offering. In the condition when the existing product offerings of the organization have been failed completely, the organization is required to move to a new market with product offerings (Witcher & Chau, XXXXXXXXXXProduct development Product development is the strategic measure that allows the company to attain the growth by offering some new products within the existing market place. This strategy can be proved quite successful in the condition when the existing market place of the organization is full of potential and growth potential. In this strategy, the organization is required to use its research and development skills for the purpose of delivering some new and innovative product offerings to the organization (Hitt, Ireland & Hoskisson, XXXXXXXXXXMarket Penetration When the organization is intended to sell its existing products within the existing market, market penetration strategy is used for the purpose of attaining growth. In this strategy the company requires to keep its prices down so that a mass market share can be captured in the most effective manner. For this purpose it is quite essential for the business organization to attain cost leadership so that the profit margin can be attained after reducing the prices. The prime focus of the company in this strategy is on catering the mass market (Haberberg & Rieple, XXXXXXXXXXExplanation of the most suitable growth strategy for the Organization On the basis of the analysis of different types of growth strategy and existing situation of the business organization, it can be considered that market development and product development strategies would be the most suitable growth strategies of the organization. Walmart is required to put emphasis over developing new geographical markets as well as new product offerings for domestic market. In the market development strategy, the management should identify some new markets outside the UK so that domestic competition can be addressed. The company can use its intensive resources and positive goodwill for the purpose of expanding its business in to some new market place. However, before expanding business into a new market, thorough examination of external business environment is quite required. Along with developing new markets, the organization also requires strengthening its existing disposition within existing marketplace. For this purpose, the company needs to offer some products and service offerings within the domestic market. In this regard the company is now developing new service offerings such as financial services. Evaluation of the selected growth objective The combination of product development and market development strategy is quite effective in accomplishing different growth strategy. The quest of the organization regarding the development of some new markets outside the US will be proved quite helpful for company to be an international brand. Along with this, new market development strategy will also be proved quite effective in developing some new source of income for the organization that plays important role in the maintaining sustainable position in the highly dynamic and competitive market. Along with expanding into the new market, it is also quite crucial for Walmart to accomplish all the requirements of customers in the domestic market. As the US is largest market for the company, it is quite essential to make its strategic position in the market more effective. The development of new products and services will be helpful for the company enhance its target customer base within the country (Witcher & Chau, XXXXXXXXXXIn this way, it can be considered that both strategic measures will be helpful in accomplishing all the growth objectives. References About Us XXXXXXXXXXRetrieved March, 18, 2013 from, http://forrespect.org/our-walmart/about-us/ Haberberg, A. & Rieple, A XXXXXXXXXXStrategic Management: Theory and Application. Oxford University Press Hitt, M.A., Ireland, R.D. & Hoskisson, R.E XXXXXXXXXXStrategic Management: Competitiveness and Globalization : Concepts & Cases. (8th ed.). Cengage Learning. Our Story XXXXXXXXXXRetrieved March, 18, 2013 from, http://corporate.walmart.com/our-story/ Witcher, B.J. & Chau, V.S XXXXXXXXXXStrategic Management: Principles and Practice. Cengage Learning EMEA.