The critical success factors for operating in retail business (using the example of Wal-Mart’s success as a template) are: ·
Walmart Porter's 5 Forces Analysis
Potential Competitors: Medium pressure
Wal-Mart has an technologically superior distribution systems, lowest possible costing, brand name, and management expertise to fend off competitors. ·
Wal-mart is perceived by the customers to offer lowest prices and we can say brand loyalty is high
Rivalry Among Established Companies: Medium Pressure
Currently, there are three main incumbent companies that exist in the same market as Wal-Mart: Sears, K Mart, and Target. Target is the strongest of the three in relation to retail. ·
In European markets retail companies like Tesco do pose a substantial challenge
The Bargaining Power of Buyers: Low pressure
The individual buyer has negligible pressure on Wal-Mart.
Bargaining Power of Suppliers: Low to Medium pressure
Since Wal-Mart holds so much of the market share, they can dictate terms to the suppliers on basis of their business volume. Large corporates like Pepsi may have better ability to negotiate.
Substitute Products: Low pressure
Online shopping could be a cause of concern in the future but in the medium threat the danger could be termed as negligible.
Wal-Mart SWOT Analysis.
Strengths - Wal-Mart is a powerful retail brand and perceived by customers to offer lowest prices and thereby value for money. Weaknesses – Due to the huge scale of operation it is possible that Wal-Mart may experience diseconomies of scale. Opportunities – To establish dominance in European markets and Asian markets like Japan and China. Threats – Since Wal-Mart is the largest company in the world it is subject to political pressures as well as the target for it’s competitors.
Wal-Mart BCG Matrix Analysis.
High market share, High growth
Low market share, High growth High...
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