Jan 31st 2013
Case 2 Wal-Mart in 2010
Wal-mart is the one of the largest retailers in the United States. There are three main retailers store which are Wal-mart, Target, and Kmart in the US. Wal-mart is the best store so they have a lot of competitors in the US. Target and K mart are not only the competitors also all other discount retailers and small markets. Wal-mart sells almost everything so they have many competitors. For electric, Bestbuy is their competitors. Also, online market is the very big competitor because they sell everything on online such as eBay, Amazon, etc. this is because wl-mart was the largest among the general discount retailers.
Wal-mart sells their products with low prices. They have high threat of substitution. As I mention above, all the stores are the substitution. However, the Threat of new entrants is pretty low. New company should be faced with low prices of wholesale upon entry. Wal-mart already has the economic scale, brand recognition, service, and variety of product offerings. Wal-mart can drop their price when they want new competitors to be forced out of the market.
Wal-mart had tried to open a store in different countries. They didn’t know the environment of the South Korea so they got out of the Korean market. We don’t have so many discount retailers’ stores in South Korea when the wal-mart tried to open. Wal-mart had good operation system, low prices, and variety of product offerings. However, wal-mart didn’t make good effect to people. This is because they don’t understand Korean cultures. At that time, one plus one is the slogan of the discount stores. It means that if you buy one; get one free so they pack 2 items in one price. Now, buy one get one free is the not weird idea. Unfortunately, wal-mart got out of South Korea because they didn’t offer the one plus one ideas.
Wal-mart is well established company with store located in the US so the individual buyers don’t have much power on wal-mart. Also,...