Wal-Mart
Porter's 5 Force Model
In this Porter's 5 Force Model analysis, specific focus is being paid to the competition of Wal-Mart that exists within the consumer retail industry rather than the industries in which Wal-Mart competes. We will be discussing the position of Wal-Mart in the industry with respect to various industry forces (St.Hilaire, 2012).
Threat of new entrants to a market: Medium pressure
Threats of new market entrants for Wal-Mart are relatively moderate for the reason that Wal-Mart has very strong marketing, distribution and purchasing along with the fact that it has sufficient capital to hire and train their employees and purchase merchandises (St.Hilaire, 2012).
Due to the fact that the Wal-Mart has built a brand name for itself and has excellent distribution systems as well as capital to keep the competitors at bay the barriers to entry are very high in this particular sector (Bryant, 2010).
Furthermore, Wal-Mart has established a huge wholesale market and as a result it almost always has an absolute cost advantage as...
The Price-Sensitive Affluents, Wal-Mart has learned (Wal-Mart Annual Reports) is more interested in finding an exceptionally good deal and not necessarily concerned about the shopping experience. This is particularly true as one of the strongest factors influencing the execution of their strategy, the emerging global recession during this timeframe, takes hold. Again as with the Price Value Shopper and the paradoxical purchasing patterns of the Brand Aspirational segment show,
Wal-Mart Inc. Wal-Mart is an American-based multinational discount store, currently operating more than 11,000 retail outlets in 27 different countries, and serving approximately 140 million customers weekly. Headquartered in Bentonville, Arkansas, Wal-Mart grew from a small family-managed retailer in 1945 to the world's largest retailer, and was named the world's largest company by revenues in the 2014 Fortune 500 list. The company operates its retail stores in two forms: i) Sam's
Wal-Mart faces an industry that is generally challenging, but its strength in the industry results in the industry being favorable. Wal-Mart's success is predicated on excellence execution of key components of the discount retail value chain -- procurement, logistics and merchandising. Wal-Mart has numerous strengths, but as befits the world's largest company it has relatively few weaknesses. In its intensely competitive businesses, Wal-Mart sees many threats, but there are still
Corporate Mission As the largest mass merchandiser in the world, Wal-Mart's work in supply chain execution, research, and policies defines best practices for the broader high volume retailing industry worldwide. Wal-Mart is comprised of three operating segments including the Wal-Mart stores, Sam's Club and the International Stores. The typical Wal-Mart discount store as 50 departments or more and a few are offering groceries in addition to apparel, fabrics, stationery and books,
Here we can clearly see a shift in the company's philosophy of just offering lower quality products for a significant lower price. The company is trying to develop into new markets and to succeed. There have been some set-backs of course, such as the failure in Germany, and yet the company is persistent and keeps growing into new markets. Wal-mart is seeking to increase the market share for present
Bargaining power of customers: Our main question here is whether Wal-Mart customers can walk away from buying a product at Wal-Mart and find it cheaper elsewhere. For the most part, the answer is no. Wal-Mart has built its reputation by providing products at a considerably lower price than its competitors (Is Wal-Mart good, 2005). Certainly, customers can try to find lower prices at other retailers; and the proliferation of the
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