Question

Compare and contrast 2 global companies of your choice. In your analysis, address the following at a minimum:

- One page summary of the companies and products

- What global strategies have these companies implemented to stay ahead of their competitors?

- What is their source of competitive advantage?

- If you were the leader running these companies, would you change anything? Why or why not?

Answer 1

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Global companies are those which has a worldwide expansion of business activities. IKEA and Walmart are two significant global organizations having a globally expanded business area.

Summary

Walmart

Walmart is one of the oldest retail and whole organizations of the USA which was founded in the year 1962. It sells products like Electronic goods, music items, interior decoration equipment, clothing’s, furniture’s, groceries, and sports kits. It has round 11,500 stores across the globe. Walton family is the 5% shareholder of this organization. Currently, this organization owns a revenue of $514.4 million and its operating amount is $21.96 million which are considered highest in the USA market. Effective implementation of consumer management and quality improvement are key elements of success.

IKEA

IKEA is one of the oldest Swedish furnishing organizations. It has a globally expanded business area. This organization was established in the year 1943. Furniture homeware is the main products. It has earned a revenue of €37.05 billion with a total asset of € 2.35 billion.

Global strategies

• Pricing strategy of IKEA for the international market is a low price strategy. On the contrary, Walmart has a low to medium price strategy
• IKEA is more focused more on quality improvement strategy. However, Walmart is more focused on both product diversification and product improvement strategy
• Both these organizations have efficiency in digital media marketing strategy. However, IKEA prefers Facebook for consumer relation while Walmart adopts Instagram to communicate its target consumers.

Source of competitive advantage

IKEA

• Strong consumer relationship management
• Consistency inequality improvement
• Effectiveness in reaching developing countries

Walmart

• Development of relationships with consumers around the world
• Product diversification
• Brand loyalty of the company

If I am given the leadership of these companies I would have advised to

• Improve strategic leadership
• Develop consumer segmentation in pricing strategy
• Create an effective strategy to enter more into developing economies

Because these are only ways to ensure steady growth of both these companies.