The researcher of this essay “Wal Mart Case Analysis using Porter's Model ” aims to analyze competitive advantages of Wal-Mart, using Porter's (2008) model for this analysis. Wal mart competitive advantages are its distribution capabilities…
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This helps in improving the supply chain and lowering the cost of distribution. Third competitive advantage is its advanced technology of data mining. With the help of data mining, they are able to gather useful data for the suppliers, improves customers satisfaction with the help of accurate demand forecast. The cost is reduced as there is no excess of inventor. The forth competitive advantage is Wal Mart work force culture. It values more for the customers; it is not compromised in any ways. The stores are able to response quickly to the changing demand. Lastly it’s the EDLP (everyday low price). With the help of EDLP customer satisfaction is improved through low price. The advertising cost is also reduced and steady price improves the supply chain (Quelch, p.189-192). The individuals can easily shift to some other competitors who offers product at a lower price than Wal-Mart. But the consumers will lose the convenience with the organization. Thus the power of consumer is medium. Entry barriers for new players are high compared to its competitors due to high initial set up costs such as distribution channels and this is because Wal-Mart has good distribution systems, huge brand name. Wal-Mart has an absolute cost advantage. Therefore the threat of new entrant is low. Threat of substitute is low as there are not many companies which offer low pricing and convenience. The customers may switch off to other speciality stores but they would not find the low pricing strategy of Wal-Mart.
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269 – 272). Since the establishment of small retail store outlets in isolated areas made it easier on the part of Wal-Mart’s target consumers to purchase consumer products without having the need to travel to far-away places, Wal-Mart as a brand has created a positive image which made the company gain the loyalty of its existing consumers (Taub, 1986, p.
What are Wal-Mart's competitive advantages? How sustainable are those advantages. Use Porter's (2008) model for this analysis. Competitive Advantage Wal mart competitive advantages are its distribution capabilities. One of the activities of Wal mart was efficient distribution.
In the present states of activities, the war on terror state of global and changing consumers' pattern it has become necessary for companies to be more responsive in their activities and operations to customers and other stakeholders (Bowlby 2001). Wonglimpiyarat, (2004).
Businesses in general and retailers in particular are experiencing varying degrees of success as they strive to incorporate Internet technology into traditional retail formats (Little et al. 2002). E-marketing is the antithesis of bricks and mortar of retailing.
Wal-mart markets itself by a slogan "Save, Live Better" around which the policy of Wal-mart is based i-e offering lowest possible prices to its shoppers. Wal-Mart also operates in Mexico as Walmex, in the UK as Asda, and in Japan as Seiyu. It has wholly owned operations in Argentina, Brazil, Canada, and Puerto Rico (The Wal-Mart Effect, 2006).
The organisation possesses a large customer base in U.S., which constitutes nearly one-third of the population. The company operates all over the world through 7800 Wal-Mart stores and Sam's Club warehouses. Being the largest retailer in the world, Wal-Mart is responsible for the introduction of a series of job opportunities globally.
Lastly the report recommends probable future courses of actions obtainable to Rolls Royce business, in order to get better profits and stop mistakes in the future (Bevilacqua, M. & Petroni, A. 2002, 235-255).
There are obvious barriers for the industry in terms of economies of scale, capital requirements, and government policy.
Globalization and liberalization of the economies of the world are the important factors facilitating cross-border transactions. International business is in two basic forms viz., trade and foreign direct investment (FDI) and a
The retailer’s mission is to ‘Help People Save Money So They Can Live Better’. The immensely successful Wal-Mart could not replicate its business model in South Korea. The company’s stint in East Asian nation lasted less than a
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