(Soni, 2015)“With the power and success that the company is able to harbor its fellow companies like Kroger, K-mart, and Target don 't even stand a chance. This places Walmart in the driver seat in their market and places direct pressure on their weaker competitors. The success of Walmart eventually will be so overbearing that it will start to push other competitors completely out of business. Strategic Considerations and Recommendations With the expansion into smaller communities, Walmart will be able to provide low cost products to its consumer as well at take out new competition that until now did not exist on their radar. By implementing this low cost strategy into the communities Walmart will not only attract new customers, but will also draw previous customers who will enjoy their new community based market.
Walmart’s low prices have caused an industry–wide obsession with consolidation. Many firms are cutting costs any chance they can, forcing some firms to move upmarket. “The traditional supermarket concept no longer has a profitable future in most ... ... middle of paper ... ...lay a part in the consumer’s decision but in the end eggs from one store are the same as eggs from another store. The consumer can also compare prices from various stores to get the best deal on their groceries. Supplier Power Supplier power has been pretty high in the past because grocery stores had very few options of where they could get their goods and had even less of a say of how much to pay for these goods.
26 Feb. 2014. 12 March 2014. http://krugman.blogs.nytimes.com/2014/02/26/a-general-theory-of-obamacare-fiction/?_php=true&_type=blogs&_r=0 Nather, David. "How Obamacare Affects Businesses Big and Small." ' Politico. 30 Sept. 2013.
Consumers opted to shop at Walmart due to their lower prices, and while the company didn't profit as well on a per item basis, the volume of their sales outpaced competitors. High sales volume gave the Walmart corporation capital to grow, and they did, in 1970 Walmart had 32 sto... ... middle of paper ... ...of products to consumers. It is easy to see where some people read the negative things written about the Walmart Corporation, and without further investigating it, believe what they read. The unions have become very ruthless and they will essentially stop at nothing to win the battle against Walmart, but if one takes the time to really investigate the negative propaganda, they will realize that it all stems from the resentful employee unions. What I found while researching the propaganda is how much our country has benefitted from the Walmart Corporation.
The introduction of a large grocer like Walmart into a community is not without controversy however. When a large corporate grocer comes into a community, it can be very difficult for smaller grocers to compete. Walmart has an extensive nationwide distribution system with many warehouses, allowing it to more efficiently store and transport inventory. This gives them a large advantage over smaller grocers, as it allows them to price items as a lower price since their expenses are also lower. In this regard, Walmart could be viewed as an economic disruptor by owners of former grocery stores, as it drives them out of business by possessing many competitive advantages.
POWER of Buyers: · Weak because basically the prices are low from the beginning so there would not be any potential for buyers to bargain with. POWER of Supplies: · Weak because Wal-Mart uses its own distribution centers that are located close to its stores. · Wal-Mart is also far and away the biggest customer of virtually all of its suppliers. It's scale of operation allowed it to bargain hard with suppliers and get their bottom prices. SWOT Analysis General Strengths · Provides customers with everyday low prices.
Walmart is good for America because just to fix all that is wrong that Walmart is doing it makes it so that America has to make an effort to change and have to follow rules and go by the regulation. Walmart was made to make great money fast and Walmart stayed because no one realized what they were doing. This Walmart can only end in three ways it can either be left the same and the business itself booms bigger than it was before and all other businesses end up shutting down. Or it can et shut down and 1.2 million workers can become unemployed. Lastly other business owners can take charge make a change and make thier businesses better and not force people out of Walmart but make their business better than Walmart that people wont want to shop there anymore.
This Company has grown to be a retail giant with over 11,000 stores worldwide from Canada, Brazil, Argentina, UK, and China. When Walton initially founded Wal-Mart, his business strategy was to make everyday products available to ordinary consumers at affordable prices. Wal-Mart’s business strategy still remains the same: its main goal is to provide its customers with what they want, when they want it, and where they want it. This convenience is what made Wal-Mart an internationally recognized brand. Wal-Mart is a huge retail powerhouse that is able to maintain its competitive edge by cutting costs and maximizing shareholder wealth.