Blog #5 (F. 19)

Blog #5 (Fall 2019): The Future of Strategy

What will the United States’ leading companies look like in the next decade? Chances are very different from today’s top performers in brand, business model, and social impact strategy if current leaders don’t adapt to shifts in market forces. Disruption affects industries beyond the introduction of the latest technology — it changes the ways firms operate internally, and how industries engage with suppliers, consumers, and society. Companies that thrive in the near future must build their strategy around a more nuanced form of social impact, creating shared value, to outlive and outpace the threat of market disruptions.

More factors than just technology are contributing to major market shifts. Boston Consulting Group researchers have determined 12 changes in the supply and demand for talent that shape the future of work and industry.¹ Ranging from the rise of automation, to new strategies for customer acquisition, geopolitical dynamics, and shifting values — companies will need to think broadly about strategy development to remain competitive. Companies shouldn’t wait long to re/strategize. Nearly 30 longstanding companies were replaced on the S&P 500 by some savvier firms.² The turnover rate for the index of top performing companies is only expected to increase.

Walmart has demonstrated its ability to adapt, expand its strategy broadly, and thrive despite growing competition. The company has managed to transform its image and marketing position to maintain a competitive edge. In the last decade, a company once known for its obscenely low staff wages became known for providing farm-fresh produce, helping to reduce the number of food deserts nationwide and increasing access to low-income communities.^{3, 4} But their strategy and sense of social responsibility has gone beyond direct consumers — Walmart has also begun investing to create shared value.

Walmart’s nonprofit extension, FSG, focuses on creating systemic impact. Whereas the traditional corporate social responsibility model targets discrete impact areas without consideration for profit maximization (e.g., fair trade practices), creating shared value provides impact that benefits society and the organization.⁵ Evolving their corporate practices with societal and technological progress has proven to be extremely valuable for Walmart. An example of their CSV actions includes cutting back their packing locating more efficient delivery routes, thereby reducing their carbon emissions and generating savings.⁶ This is more than arbitrary green marketing — it is seeing the value is social values and responding.

Walmart’s competitive position has also allowed it to grow its technology capacity to match emerging competitors while keeping a commitment to communities. After introducing blockchain into some of its supplier relationships, the company continues to live up to its reputation for being a low-cost retailer.⁷ Walmart offers a cheaper online food delivery service than its low-cost high-convenience rival, Amazon, and makes this service available to those on public assistance.^{8, 9}

The Walmart case shows that creating value for society, across multiple levels of impact, can support profits and a competitive advantage. Companies of the future will have to act similarly to remain industry leaders.


1. Bhalla, Vikram, Susanne Dyrchs, and Rainer Strack. “Twelve Forces That Will Radically Change How Organizations Work: The New New Way of Working.” Boston Consulting Group, March 27, 2017. https://www.bcg.com/publications/2017/people-organization-strategy-twelve-forces-radically-change-organizations-work.aspx.

2. Anthony, Scott, S. Patrick Viguerie, Evan Schwartz, and John van Landeghem. “Corporate Longevity Forecast: Creative Destruction Is Accelerating.” Innosight, n.d. https://www.innosight.com/insight/creative-destruction/.

3. Huber, Bridget. “Walmart’s Fresh Food Makeover.” The Nation, September 14, 2011. https://www.thenation.com/article/walmarts-fresh-food-makeover/.

4. Macvean, Mary. “Connecting WIC Participants with Farm-Fresh Produce.” Los Angeles Times, August 18, 2011. https://www.latimes.com/food/la-fo-farm-wic-20110818-story.html.

5. Porter, Michael E., and Mark R. Kramer. “Creating Shared Value.” Harvard Business Review, January/February 2011. https://hbr.org/2011/01/the-big-idea-creating-shared-value.

6. Ibid.

7. Mohan, Geoffrey. “Walmart to Salad Growers: If You Want to Sell, You Have to Blockchain.” Los Angeles Times, September 25, 2018. https://www.latimes.com/business/la-fi-walmart-lettuce-20180925-story.html.

8. Smith, Connor. “Walmart Undercuts Amazon With Its Subscription Grocery-Delivery Pricing.” Barron’s, September 12, 2109. https://www.barrons.com/articles/walmart-grocery-delivery-membership-amazon-subscription-51568296087.

9. Perez, Sarah. “Walmart Will Allow EBT Customers to Order Their Groceries Online.” September 19, 2017. TechCrunch. http://social.techcrunch.com/2017/09/19/walmart-will-allow-ebt-customers-to-order-their-groceries-online/.