Extrinsic factors influencing the strategic decisions of organizations, especially the leaders of the international market, often form the basis for planning the company’s further steps. As Lobo et al. (2020) notice, these factors include but are not limited to the products of PEST (political, economic, social, and technological) analysis, company organization, competitive structure, legislation intricacies, industry, and the offered product/service specifics. Walmart Inc, as one the largest retailers in the US, cannot ignore all of the mentioned forces to stay afloat and prosper as a business.
Given the actuality of the impact the Covid-19 on world trade, this paper will mainly examine Walmart’s strategic planning adjusted by the world-known disease. The coronavirus pandemic, along with the general sentiment in society promoting a hectic career-centered lifestyle, has become a stumbling rock for the number of offline retailers, which also did not bypass Walmart Inc. Although Walmart has been actively exploiting the opportunities provided by e-commerce, the growing competition and restrictions imposed by the pandemic have prompted Walmart to reconsider and/or innovate some online retailing strategies (Jindal et al., 2021). Walmart has chosen to develop omnichannel grocery retail in the first place, which is one type of product it considerably outgrows its rival competitor Amazon.
Walmart decided to play on one of Amazon’s weaknesses by offering several delivery options. Customers could either choose a click-and-pick model where they could select and purchase products online and pick them up at the store or take advantage of home delivery (Jindal et al., 2021). Jindal et al. (2021) stressed that though home delivery was not a preferred type of retail given the shipping cost, the company mitigated the expenses by opening additional warehouses and increasing the quantities of the product in stock. This enabled the company to expedite the customer’s delivery and lower the shipping cost.
Walmart is continuing to advance its online retail channels to grasp more significant layers of the population and address the burning needs of society. As can be seen, the global pandemic, though it posed a danger for businesses, has also opened a plethora of opportunities. During the pandemic, Walmart has started to be seen as a serious competitor to Amazon. Walmart used the coronavirus outbreak to its advantage and became a serious threat to other online retailers.
References
Jindal, R.P., Gauri, D. K., Li, W., & Ma, Y. (2021) Omnichannel battle between Amazon and Walmart: Is the focus on delivery the best strategy?Journal of Business Research, 122, 270-280.
Lobo, C. A., Fernandes, C. I. Fereira, J. M., & Peris-Ortiz, M. (2020). Factors affecting SMEs’ strategic decisions to approach international markets. European Journal of International Management, 14(4), 617-639.