Case Analysis: Wal-Mart Stores

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Case Analysis: Wal-Mart Stores

I believe Wal-Mart uses the growth strategy the most out of the corporate strategies. They are constantly seeking to increase their business by expanding into new products and markets. Wal-Mart also shows a forward vertical integration.

a) strengths- one stop shopping / strong community involvement / leads industry in information technology.

b) weaknesses- no formal mission statement, few women and minorities in top management, membership only for SAM’S Club.

c) opportunities- consumers want ease of shopping / internet shopping is growing / elderly population growing / environment conscious consumers

d) threats- being number one means that you are the target of competition / being global retailer means that you are exposed to political problems in the countries that you operate in / regulation of Wal-Mart pharmacies

a) Threat of new entrants- entry barriers are relatively high due to Wal-Mart having great distribution systems and financial capital to succeed over competitors / Wal-Mart usually has absolute cost advantage over other competitors.

b) Threat of substitutes- not very many substitutes that offer convince and low prices / customers has the choice of shopping at speciality stores for their desired products but will not find Wal-Mart’s low pricing.

c) Bargaining power of buyers- individual buyers have very little to non pressure on company / consumer advocate groups have complained about Wal-Mart’s pricing techniques.

d) Bargaining power of suppliers- since Wal-Mart holds large amount of market share they offer business to manufactures and wholesalers / Wal-Mart could vertically integrate / Wal-Mart at times deal with large suppliers who have more bargaining power than small suppliers

e) Current Rivalry- three main rivals are Sears, K-Mart, and Target / Target being the strongest of competitors as they grow in domestic markets as Sears and...
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