Summary of Broad Differentiation Strategic Management (Essay Sample)

Broad Differentiation strategic management
One of the three general strategies that Porter proposes, differentiation is one of them. Businesses are always on the lookout for new and innovative methods to increase the value of their goods and services in a manner that is distinct from that of their rivals. The characteristics of a product need to be the primary factor used to establish its price. Walmart use a wide array of approaches to differentiate itself from its competitors in order to achieve this goal. Consider using a differentiation strategy in order to boost profits at Walmart without resorting to price reductions or taking on major additional risk. If the strategy was unsuccessful, it would result in an increase in costs for the firm, which would have a negative impact on the profitability of the business. Implementing a plan that sets your business apart from the competition is the most critical aspect of any business. Numerous elements have an effect on the differentiation method that is chosen. In light of these considerations, a company can try to separate itself from the competition. Price has the potential to be a big differentiating factor if it is managed correctly. As a direct consequence of taking this attitude, Walmart has maintained its commitment to innovation by introducing a wide range of new products. The use of innovative technologies and the production of game-changing goods by Sam Walton have both been important contributors to the evolution of Walmart. Walmart's ability to more easily advertise their own brand is made possible by their practice of customer segmentation. It allows for a more intense concentration on the requirements, preferences, and anguish of the customer. Walmart, which is the largest retailer in the world, has more than 10500 stores all over the globe. Wal-Mart has shown that it is capable of experiencing rapid expansion by achieving a growth rate of 55 percent since the year 2000. Every single merchant maintains a sizeable stockpile, which enables them to react rapidly to changing market conditions.