STEP 8 – Quantitative Strategic Planning (QSPM) Matrix

The Quantitative Strategic Planning (QSPM) Matrix is a strategic tool used in the
evaluation of strategic options and determination of relative attractiveness of strategies. It
determines which of the selected strategic options is feasible, and it actually prioritizes these
strategies. It incorporates the strength/weaknesses and opportunities/threats from the IFE-and
EFE matrices and their weights in combination with rating that characterizes the attractiveness
score (AS). To make the total attractiveness score (TAS) these two must be multiplied. In the
case of Wal-Mart Stores Inc. we looked at the two strategies which are the "Backward
Integration" and "Enter European nations through joint-adventures". The conclusive outcome of
the correlation of those two vital options appears, that the second strategy which is "Enter
European nations through joint-adventures" is the greater favorable option. With a score of 3.4 it
scores over and is a promising approach to implement . In any case, the first strategy, "Backward
Integration", with a score of 3.26, additionally scores over average and is an extensive
alternative strategy.

Enter European
Backward Integration countries through
Key Factors QSPM Weight
joint-ventures
AS TAS AS TAS
Opportunities
 Online Shopping Growth 0.15
 Expanding in European Market 0.13
 Customers of higher income 0.1
Group
 Sustainability awareness trends 0.05
 Enhancing human resource 0.07
practices
Threats
 Fast changing technology 0.2
 High bargaining power of 0.07
customers
 Instabilities due to external 0.05
factors
 Aggressive competition 0.05
 Fierce price competition in retail 0.13
industry
Strengths
  Established retail brand
 Cost leadership in comparison
with competitors
 Continuous growth
 Wide range of products and
private label brands
 Control over suppliers
 Profitable organization of
distribution channels
Weaknesses
 Lack of presence in many
developed countries
 Failure of entering foreign
markets
 "Everyday low prices" could be
connected to poor quality
 Easily copied business model
Total