Concept Of Business Excellence Essay

Question:

Discuss about the Concept of Business Excellence by an Organization in their Industries.

Answer:

Introduction

This report aims to explore the concept of business excellence by an organization in their industries. This study has two organizations which are Wal-Mart and Nike case study with its strategy and theories that helped it to reach at the top of their industries. Hence, this report has key theories like business model innovation, competitive advantage, commonalities of the organization that made its achievement bigger.

Wal-Mart

Wal-Mart is one of the largest and most successful retailing china in US. It was commenced in 1962 in Arkansas, US. It is headquartered in Bentonville, US. It has been located worldwide with more than 11695 stores. It offers almost all the products of household and grocery along with the electronics, home and furniture, movies and music, jewelry and health and beauty products. In 2016, company has earned estimate US$ 485.87 billion (Wal-Mart, 2017). This company has been selected because it is well renowned around the world for all products at the same roof in lower prices. The company has the most incredible and effective supply chain management that helps in making and assembling low cost products.


Wal-Mart competes in retailing and superstore industry with other well known competitors like IKEA, Tesco, Dollar Tree, Family Dollar and Marks & Spencer. Wal-Mart targets middle and upper class individuals in the customer segment. It has made a value in the retailing market as store which fulfills every need of the customers for better life (Wal-Mart, 2017). The global presence of the company is one of the strongest points of the Wal-Mart. It offers products to the customer in very low price in compared to other competitors are the unique proposition of the company (Nilsson and Rapp, 2005). The company also offers ' Every Day Low Price’ that facilitates same prices throughout the chain and has famous events like ‘Black Friday’ with throw away prices of the products. This strategy has revolutionized the retailing industry by implementing new and creating one business model at a time with initiation, integration, ideation and implementation of strategies. Wal-Mart always works on the new business model innovation that mainly focuses on the supply chain management that helps the company in achieving competitive advantage (Mason and Evans, 2015). The organization works with various local vendors that help in multiple supplies of raw materials. It is being managed by the latest technology like RFID and ESOP that creates transparency between the relationship of suppliers and employer.

Moreover, the company lowers its cost of production through economies of scale (Jin and Lin, 2012). Wal-Mart has also eliminated all the middle men from its supply chain that also reduced its cost of products. Hub-and-spoke distribution centers are being used as highly efficient logistics network by the company that is situated only one day of driving distance that cuts the operating cost of Wal-Mart. Along with this, the transportation system of the company is also very effective and efficient that helps it in lowering its cost of products (Porter, 2008). The company has around 2.2 million workers which are considered as valued employees and has strongly committed top level management that always bring something new to the market (Wal-Mart, 2017). The company also has its own brand and innovative and special customer loyalty programs. Wal-Mart has also used digital information system as an essential need of modern world that helps it in selling its product. The company has its online website that helps the customer to shop online. Wal-Mart also involves in delivery of products at the doorsteps of the customers with anything and anywhere. In addition to this, Wal-Mart is being honored by many awards for excellence in customer services and focus (Jin and Lin, 2012). Wal-Mart is very competitive due to its business models innovation and offers new prices every day to the customers that are less than other competitors that gives value to the company.

Nike

Nike is one of the most trusted and well recognized companies in sports shoes segment all over the world. The company manufactures specialized sports shoes, sports equipments, accessories and apparel (Nike, 2017). The company is in lifestyle and retailing business since 1964 and headquartered in Oregon, US. Nike’s revenue in 2016 was US $32.376 million. The total number of employees of the company is more than 62600 people around the world. The company is being selected due to its leadership in high quality sports products continuously as a strong brand. Nike is successful because of its extensive research and development as well innovative strategies in the market (Hennig-Thurau and Hansen, 2013).

Nike is world’s leading brand in sports equipment that targets on men, women and children from upper class and upper middle class. The principle competitors of the company are Converse, Puma, Fila, Adidas, Reebok, New Balance and Bata. It majorly focuses on the sports enthusiast customers and offers expensive high quality of products and services that give comfort and satisfaction that builds value in the market (Nike, 2017). Nike has excelled in the sports related equipments and shoes due its unique designs and high quality products which used as sustainability with continue radical innovative R&D. Nike is one of the companies in “fortune magazine’s 100 best companies to work for”. This shows that Nike is very good in utilizing its resources and capabilities. The top level management of the company is also very cooperative and committed. The company is collaborated with various companies worldwide such as Apple which show its effective business relationship building. Some of the products are Nike watches, Music Players and Nike+Ipod with these collaborations (Nike, 2017). Nike sponsors various big events that have famous celebrities and held for the good cause which also acts as good marketing strategy which is an innovative way to generate revenue in this industry (Hill and Jones, 2007). The company also top ranked company that uses eco friendly products and placed in climate friendly companies (Mahdi, et al., 2015).


The main key success factors behind the achievement of the company are extensive research and development that creates demand of the products with smart and creative way which is a competitive advantage of the company (Ros, 2011). The company has a well managed supply chain management and efficient management and group of people that works for them. Furthermore, the company is recognized for its marketing strategies that includes famous celebrity athletes, professional teams and college athletic teams to whom they also involve in sponsorship agreements (Ros, 2011). Nike acts very socially responsible and outreaches various communities for the same purpose that enhances their brand name in front of customers and creates value proposition. They are also digitally encouraging their existing and prospective customers through different means of social media platforms (Mahdi, et al., 2015). Not only this, Nike made a YouTube series named Margot vs. Lily as marketing campaign which have over 80M views. These strategies with the helps theory of initiation, ideation, integration and implementation have helped the company in revolutionizing the lifestyle and retailing industry which is very essential to be successful than other competitors (Pantaleo and Pal, 2008).

Conclusion

From the above discussion, it can be concluded that every organization in the leading position works exceptionally good to make its product appealing. Along with this, the implementation and recreation of business model innovation is very necessary by the companies to be competitive in the market and achieve competitive advantage on the constant basis.

References

Hennig-Thurau, T. and Hansen, U. 2013. Relationship Marketing: Gaining Competitive Advantage Through Customer Satisfaction and Customer Retention. Springer Science & Business Media.

Hill, C. and Jones, G. 2007. Strategic Management: An Integrated Approach. Cengage Learning.

Jin, D. and Lin, S. 2012. Advances in Electronic Commerce, Web Application and Communication. Springer Science & Business Media.

Mahdi, H. A. A. et al. 2015. A Comparative Analysis of Strategies and Business Models of Nike, Inc. and Adidas Group with special reference to Competitive Advantage in the context of a Dynamic and Competitive Environment. International Journal of Business Management and Economic Research, 6 (3), pp. 167-177.

Mason, R. and Evans, B. 2015. The Lean Supply Chain: Managing the Challenge at Tesco. Kogan Page Publishers.

Nike. 2017. Annual Report. [Online] Available at: [Accessed on: 18 August 2017].

Nilsson, F. and Rapp, B. 2005. Understanding Competitive Advantage: The Importance of Strategic Congruence and Integrated Control. Springer Science & Business Media.

Pantaleo, D. and Pal, N. 2008. From Strategy to Execution: Turning Accelerated Global Change into Opportunity. Springer Science & Business Media.

Porter, M.E. 2008. Competitive Advantage: Creating and Sustaining Superior Performance. Simon and Schuster.

Ros, A. A. 2011. NIKE Strategy: Strategy Management. International Journal of Competitive Intelligence, Strategic, Scientific and Technology Watch Sciwatch Journal 4(1), pp. 1-2.

Wal-Mart. 2017. Annual Report 2017. [Online] Available at: [Accessed on: 18 August 2017].

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