Walmart Case study anaysis

EXTERNAL ANALYSIS
1. Industry Analysis – Walmart

Porter’s theories can be used to formulate survival strategies for your current business, as well as to evaluate the attractiveness of other industries for expansion.

Entry Barriers- Economies of scale (forces potential entrants to come in at large scale or accept cost disadvantage- Product differentiation – (forces potential entrants to spend heavily to overcome customer loyalty) – advertising, customer service, being first in the industry)- Capital Requirements – fixed facilities, inventories- Cost disadvantage independent of size – learning curve, proprietary technology, assets purchased at preinflation prices- Access to distribution channels – own distribution channels Powerful Suppliers (NOT)- Not concentrated- Importance of volume to supplier- Obliged to contend with other products for sale in the industry
Jockeying for PositionMature industry – as an industry matures, its...