solved Respond to the following: #1 Walmart’s strategic planning cycle, which

Respond to the following:
#1
Walmart’s strategic planning cycle, which includes the organization’s positioning, information technology, and communications, is exciting and has allowed the organization to gain a competitive advantage. Precisely, internally, Walmart positioned its organization in small towns that everyone ignored and later expanding into other areas (Dyer et al., 2020). Another strength displayed by Walmart was its investment in information technology, which improved its distribution process and allowed the company the opportunity to restock inventory precisely and quickly (Dyer et al., 2020). In addition, Walmart’s communication investment and strategy permitted members of the organization to communicate swiftly and without traveling, which saved a great deal of money and time. However, externally, Walmart faced several threats from its competitors. For example, Costco, a low-cost discount retailer, offered lower prices on higher quality products. Aldi’s business model strategy offered lower prices than Walmart; Amazon offered online products that matched or beat Walmart prices, with zero sale tax.
          Walmart’s electronic data interchange (EDI) system helps separate the organization apart from other retailers like Target and Dollar Tree. The EDI system provides up-to-the-minute sales data to suppliers and is one of the primary reasons Walmart can achieve the lowest operations cost in the industry (Dyer et al., 2020). Walmart focuses 10 percent of its United States sales on its apparel compared to its competitor Target, which focuses on 40 percent on its clothing.  Walmart’s advertisement costs in 2010 were only 0.6 percent compared to Target’s advertisement costs of 2.0 percent. In addition, all functions of the organization are focused on achieving the lowest possible costs. These strategies implemented by Walmart helped ensure lower prices than its competitors, and the lower prices are a significant factor as to why Walmart has gained many customers.
          Challenges and discrepancies encouraged lawsuits from Walmart’s competitors, which drove Walmart to change the organization’s slogan from “Always the lowest price” to “Always low prices.” In most industries, competitors will likely introduce new business models that change the “rules of the game” (Bereznoi, 2014).  Less than 10 percent of an organization’s overall investment is spent on developing a new business model (Johnson, Christensen, and Kagerman, 2008). However, Walmart continues to produce superior results, and customers choose Walmart due to its cost advantage over other organizations. The cost advantage allowed Walmart to offer customers products at lower costs. 
#2
Strategic Planning Cycle
 
A strategic planning cycle is a process where managers use a set of planning procedures to examine major strategic issues faced by their organization (Lorange & Vancil, 1976). With Walmart, they have developed a strategic planning cycle that directs managers to find ways to improve customer experience through prices and innovation. One way this is done is by having managers go to competitor stores to look for ways competitors are successfully being competitive, and after visiting stores, come to a Walmart company meeting with at least one idea to improve Walmart’s competitiveness (Dyer, 2020).
 
Competitive Differentiation
 
After planning a strategic planning cycle, managers need to incorporate a competitive differentiation for the organization to be competitive so that it gains market share (Porter, 1997). A competitive differentiation strategy is a way a company is distinct from what its competitors are doing. Walmart does this by having an innovative business model (Bereznoi, 2014). Walmart’s leaders know the organization faces competition from other companies like Target and the Dollar Store. One way Walmart is displaying a competitive differentiation is by changing its products to cater to consumers who cannot find a product they are looking for at the Dollar Store (costs more than a dollar), but find the prices at Target for the product too expensive. The goal is to get the consumer to shop at Walmart instead.
 
Value Proposition
 
Value proposition is how an organization goes about creating compelling products and services customers want that attracts them to do business with them (Osterwalder, et al., 2014). Walmart’s value proposition is designed to show their customers why they should do business with them rather than the online giant Amazon. Both Walmart and Amazon offer several of the same products with different delivery options. Although Walmart does not have delivery vehicles, customers can search for a product online and physically walk into a store and handle the product. Walmart customers can order a product online and drive to the store to pick it up, usually curbside or in the parking lot (Jindal et al., 2021). Rather than waiting on the Amazon delivery van to show up at a consumer’s residence, there is a Walmart store within 10 miles of 90 percent of Americans, making curbside pickup very convenient, especially with many Walmarts open 15 hours a day.