Walmart Marketplace Management Services

Walmart Marketplace Management Services

The purpose of the analysis is to find ways to reduce costs by increasing production. The main goal is to conquer most of the market.

Products and market

In 1975, the eminent economist Steiner proposed the new model, which is a kind of matrix with the classification of markets, as well as existing, new products, related to existing and completely new ones. This matrix can indicate different levels of risk and likelihood of successful production and reward considering a large variety of market and product combinations. This model is still used to perform strategic walmart account management analysis to determine the likelihood of success in the beginning, when choosing the type of business, without losing the opportunity to see the investment report for different units. All of this means that it is possible to accurately form an organization's securities portfolio.

The development of strategic analysis takes place during the formation of portfolio models, as then it becomes possible to predict both the present and the future of a start-up business, to take into account the market attraction and the ability of new products to compete in it. The first classic portfolio came from Boston Consulting Group (BCG). With its help, the key positions of the new business were defined. There are four of them:

1. A highly competitive business, created for a fast growing market. Ideal position - "star".

2. The business is also very competitive, but created for already mature and saturated markets, even prone to stagnation. It's an excellent source of cash for an organization called "money cow", "money bag".

3. A business without a good position in the competition, but operating in a promising market. This is not yet a well-defined future, with a question mark.

4. A business with a weak competitive position in a market that is stagnant. They are banished to the business world.

Using the Boston model

The BCG model is used to determine related conclusions about business positions, for each of its business units in the organization, and, of course, about strategic perspectives. With the help of this matrix, the management of the organization forms a portfolio, as the combinations of all capital investments in different industries and business units are identified. What's best about this model: The BCG matrix offers a variety of strategy options. With an increase in market share and business growth, the "question mark" easily turns into a "star", and following the "money cow" strategy, that is, maintaining market share,

The third option is the so-called "harvest", when the business receives the maximum share of short-term profit, even if the market share is reduced. This strategy is not for strong businesses. So do the old "ladybugs" and "question marks", which failed to become an exclamation point. If the opportunities to invest in a difficult business run out, and the positions still do not improve, there is a strategy for this as well. The business is liquidated and the funds received are used in other industries.

Advantages and disadvantages

The advantages of the BCG model, first, is that it can be used to analyze the relationships between all business units entering the organization in pursuit of longer-term goals. Second, this model is able to analyze different stages of business development as a whole and each of its business units. And the most important advantage: the model is simple and easy to understand, but still offers an excellent approach to assembling a business portfolio (i.e., an organization’s securities).

There are two drawbacks. The first is that business opportunities are not always accurately assessed using this model, and not all opportunities are calculated. They can advise leaving the market when not all internal and external changes have been completed yet, and the business position can be improved and even turned into a successful one. For example, a certain farmer in the seventies barely and then got into a way for organic products, and his business could become a "ready-made cow", but later, it was sold because the BCG model did not foresee this possibility . The second obstacle is an excessive concentration on cash flows (money), and in fact, it is almost always backed by investments, this route is much more efficient. The focus on ultra-fast growth is also not that good,

Multifactorial matrix

This is a more complex version of the portfolio model developed by McKinsey & Company, a well-known international consulting company that also operates in Russia. This matrix was commissioned by General Electric Corporation. Along with a simple portfolio model, the multi-variable matrix has many equally important advantages and disadvantages.

First of all, this is taking into account the greater number of external and internal environmental factors of the organization. But by applying this model, it is also impossible to fully protect the analysis from erroneous conclusions. This is probably why there are no specific behavioral recommendations for activities in a particular market. A subjective or distorted assessment of a business's market position is also possible.

The purpose of strategic analysis

The main purpose is considered to assess the greatest impacts on the current and future position of the analyzed organization, it is equally important to determine the specific impact on strategic choices. Based on the identified goals of the organization, the main tasks faced by the organization are determined, which will help to present the indicators for strategic planning (moreover, completely regardless of the nature of these indicators - whether it is financial or not).

This means that the first step in strategic analysis will be to identify the following components: main purpose, main tasks, expectations and empowered relationships within the organization. Against the background of the main goal and tasks, it is much easier to formulate strategies and all the criteria by which they will have to be evaluated. Purpose is the whole reason for the existence of the business and the nature of the activities of the organization. The main objectives are set and long-term, so this goal was achieved.