Walmart's Porter's Five Force Analysis

Running Head : WALMART STRATEGIC MANAGEMENT
Walmart Strategic Management
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1WALMART STRATEGIC MANAGEMENT
Topic Walmart’s Porter’s Five Force Analysis
Walmart is known to be one of the biggest retailers in Australia and in other countries
too. The potential competitors and the changing market trends have allowed Walmart to develop
suitable strategies to stay sustainable in the market. The strategies are designed to protect the
business from the various issues connected to the industry environment (Dudovskiy, 2019). The
industry environment is closely related with the external factors which can be best analyzed with
Michael E. Porter’s Five Force model. The analysis will determine the current position of
Walmart and the strategic direction in which it should proceed in the market. The external
factors consist of the threat of substitutes, the bargaining power of the suppliers, the threat of
new entrants, the threat of substitution and the competitive rivalry (Lincoln & Andrew, 2018).
The analysis will help the organization to determine the market condition and form the strategies
to respond to the retail industry environment.
The intensity of the competitive Rivalry or Competition ( Strong force)
In the retail industry, the threat of competitive rivalry is strong because there are many
firms which are of different sizes and competing in the industry environment. There are few
factors which are of significant considerations in the strategic management in Walmart. Firstly,
there are a good number of firms in the market with large variety of retail firms (Rothaermel,
2015). Moreover, there are huge aggressiveness of the retail firms. It is evident that Walmart is
experiencing strong force of the external factors which define the competitive rivalry in the
environment of the industry. A high variety of firms are interrupting in the competitive
advantage of the company. They are adopting diverse approaches in the market to attract the
customers. It has been found that the more the firms are aggressive, the more they stay
competitive in the industry. Among the major competitors of Walmart, Amazon, Home Depot,