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Business and Strategy of Walmart

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Added on  2020-10-22

Business and Strategy of Walmart

   Added on 2020-10-22

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BUSINESS ANDSTRATEGY1
Business and Strategy of Walmart_1
INTRODUCTION.......................................................................................................................................3TASK 1.......................................................................................................................................................31.1 Five Forces Analysis of Walmart.......................................................................................................3TASK 2.......................................................................................................................................................52.1 Different departments within Walmart and how they contribute in expanding customer base andcost reduction..........................................................................................................................................5CONCLUSION:..........................................................................................................................................6REFERENCES:...........................................................................................................................................72
Business and Strategy of Walmart_2
INTRODUCTIONStrategy refers to the plan developed and implemented by a company to achieve long term goalsof the firm. It is necessary to gain competitive edge in this dynamic business environment (Hill, Jonesand Schilling, 2015). The assignment below is based on the case study of Walmart Inc., a multinationalretail corporation situated in Bentonville, Arkansas. It focuses on external and internal consistency ofWalmart, different departments within the organization and how these departments help the firm expandits customer base and reduce cost. TASK 11.1 Five Forces Analysis of Walmart Walmart is one of the largest retail organizations in US with huge size and impressivebrand image. It focuses on developing new strategies overtime to sustain in the market. MichaelE. Porter developed the Five Forces Model which focuses on a thorough analysis of forcesinfluencing competition (Walmart Inc. Five Forces Analysis (Porter’s Model), 2018). The FiveForces analysis of Walmart is mentioned below:Bargaining Power of Suppliers: In the retail industry, intensity of bargaining power ofsuppliers is weak. Suppliers in this industry are large and could easily get affected byWalmart. In addition to this, the firm buys products in bulk from these suppliers, whichdenotes a major business for them.Bargaining Power of Buyers: For Walmart, the bargaining power of buyers is low.Individual buyers have no impact on global revenues of the firm. Since buyers’ diversityis high, it makes it even difficult to exert pressure on the firm. The firm ensures thatcustomers get the most suitable price and convenience with Walmart. Since the pricingstrategy of the company is towards setting the lowest prices, it significantly reduces thebargaining power of its buyers (de Wit, 2015). Threat from Substitute Products: Huge variety of products and services are offered atWalmart which generally have few or no substitutes in the market. These substitutes aregenerally priced higher than the firm’s products which reduce their intensity of posing asa threat. 3
Business and Strategy of Walmart_3

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