The company is Wal-Mart. Provide information on the following:
PESTEL analysis, five force analysis, driving forces, and strategic group maps for the industry
- A brief history of the industry (development stages)
- You may use business models, market share, perceived quality and other critical and relevant variables to identify viable strategic groups in the industry
- Competitor analysis -what other companies are currently doing
SWOT, value chains, and benchmarking
-Identify and compare key strategies pursued by major players in the industry; you are also expected to discuss which strategy seems to be most successful in the industry, and the rationale for this success
Offensive and defensive strategies, vertical integration and strategic alliances.
Different environments will create an impact on the business processes of Walmart and hence, it needs to be considered and planned accordingly. The impact of different environments on the business of Walmart is discussed below.
Porter’s five forces will create an impact on Walmart. The different forces and the impact of different force are discussed below.
The threat of new competitors is very low foe Walmart because the cost of setting up a business like Walmart is expensive it cannot be afforded by all. Walmart has its brand name and at the same time, Walmart is known in the market for the offerings at cheap price. It is merely impossible for an upcoming company to achieve this advantage.
Rivalry from established competitors is very high for Walmart. There are plenty of stores that have established themselves and they are giving tough competition to Walmart. Apart from the mortar and brick stores, there are online stores as well which is targeting the same customers as that of Walmart.
The buyer power is medium for Walmart because there are possibilities that a single buyer may not like Walmart and losing a single customer is not going create an impact on the business of Walmart. The customers can create an impact if they are doing bulk shopping.
The supplier power for Walmart is very low because there are plenty of suppliers who are willing to be associated with Walmart. If few of the buyers are not interested to be associated with Walmart then Walmart may hire new buyers.
The threat of substitutes is also very low for Walmart. There are very less retail outlets which will offer products at such a low price. This is one thing that adds on to the benefit of Walmart.
There are various strengths and weaknesses of Walmart and at the same time, they have their threats and opportunities as well. It is the responsibility of the management to identify these and plan accordingly.
There are plenty of competitors for Walmart at different location but few of the competitors all over the world are as follows: -
These retailers are growing continuously and hence, they are giving competition to Walmart at all places (Edelson 2012).
The value chain of Walmart starts with the suppliers. They supply products to walmart’s distribution centre. Walmart buys in bulk and hence, they have the potential to bargain with the suppliers and get things at the cheapest possible price.
Walmart distribution center is well equipped to equipments and manpower. All the things are sorted at the distribution center within 48 hours and they are transported to the floor.
Walmart store is located in different corners of the world. The urban population as well as the rural population can shop at Walmart.
Walmart shopper is the last person in the chain and every shopper prefers to buy at Walmart so that they can buy things at a cheaper price as compared to that of other retail stores.
Offensive and defensive techniques of marketing are used by Walmart so that they can survive in the competitive. Low cost is an offensive technique used by Walmart to survive among the other retailers. Tesco used defensive technique by reducing the cost of products in Walmart retail as they know that low cost advantage offered by Walmart may attract all the customers (Mottner 2009).
Mottner, S, 2009, Wal-Mart: Supplier performance and market power, Journal of business research, Vol. 62, No. 5, pp. 535-541
Lake, C, 2010, Re-branding Wal-Mart, Social Policy, Vol. 35, No. 1, pp. 9-16
Edelson, S, 2012, Big, Bigger, Wal-Mart, WWD, Vol. 203, no. 64, pp. 1-7
Thayer, W, 2009, Walmart: Our retailer of the year; it’s not just about price. Here’s a look at marketside, partnering practices and the power of retail link, Refrigerated and Frozen foods retailers, Vol. 7, no. 5, pp. 9-17
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