Walmart

CASE STUDY Professor: Dr. Mary Flannery Teaching Assistant: Jia-Yuh subgenus Chen ECON 136 Business Strategy February 27, 2006 INDUSTRY ANALYSIS The sell industry is dominated by few retail giants, with Wal-Mart competing in several retail categories. Wal-Mart competes against Kmart and Tar pretend in the general production retailing; against Costco in the warehouse club segment; and against Kroger, Albertsons and Safeway in the supermarket retailing. contention among retailers centers on pricing, store location, variations in store format and merchandise mix, store size, shopping atmosphere, and image with shoppers. Further analysis provided by the following figure diagnoses the competitive environment of the retail industry. fiver Forces Model of Competition Threat of Substitute Products weak: Substitutes for striking box retailers are smaller grocery stores; substitutes are high charged relative to the performance they deliver. Supplier negotiate Power Weak: Industry members account for a big fraction of suppliers heart and soul sales and continued high volume purchases are great to the wellbeing of suppliers. Rivalry among Competing Sellers Fierce: Competing sellers have triggered heated price competition and are active in making mellisonant moves to improve market standing and business performance.

Buyer Bargaining Power Weak: There is a broad rack of vendees so no single buyer can claim price concessions; buyers purchase merchandise in small quantities; buyer loyalty for certain brands exists. Threat of New Entrants Weak: instauration barriers are high due to the presence of sizable economies of surmount and large capital requirements; current industry members will potently contest efforts of new entrants to gain a market foothold. 2 WALMARTS STRATEGIES CORE STRATEGY The core feature of Wal-Marts strategy is overall low-cost leadership. It attracts a broad spectrum of customers by provision a wide selection of the lowest-cost general merchandise.... If you want to get a full essay, order it on our website: Ordercustompaper.com

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