Walmart Case Analysis

The name Walmart has become a brand name that is synonymous with the American culture since it opened its first store in Rogers Arkansas in 1962. Walmart since then, has remained competitive in the global market and has managed to sustain its competitive edge globally even in times of recession. Walmart over the years has had to compete with new emerging retailers such as Target, Kmart, Home Depot, Dollar General and Costco to name a few, in addition to online giants such as Amazon and Alibaba Express. It however has managed to sustain itself as a marketable and highly competitive brand in the global market. To sustain its competitive edge Walmart like most corporations and retailers have to look at its competitors through Porters

Walmart bargaining power with suppliers has had very little effect on Walmart as seen in the documentary. Walmart has a system where its suppliers have had very little bargaining power since Walmart had the strength of purchase volume of its consumers more so than other retailers. Walmart power over their suppliers is such that it tells its suppliers what they want and at what price they are willing to pay. If the suppliers refuse, Walmart can switch to another supplier and in doing so, and out of fear of losing their contract as a supplier Walmart has been able to retain power over its suppliers. The documentary shows many suppliers moving to Bentonville, setting up office in hopes of getting a big contract with Walmart and this strategy is what allows Walmart to sustain its competitive edge. The pressures of buyers bargaining power for Walmart is quite low simply because Walmart keep their prices low at all times. Other retailers, however may choose to offer certain products, even at a lower cost to pull

Many have complained about Walmart shrewd business practices to maintain its competitive edge and the loss it has brought to communities because of jobs lost to overseas suppliers. In the documentary, the question of Is Walmart good for America can be summed up in the statement that “Walmart is giving the American people what they want, low prices, to save money and to live better.” Walmart defends against those who would argue that Walmart has been bad for working class Americans because it has lower their standard of living. Walmart however states that that they have rather raised the standard of living for the American people by providing affordable products to its consumers. Brink Lindsey, economist in the documentary sums it up as “Walmart is good for America. Walmart is doing what America is all about, what the American market economy is all about, which is producing things consumers want to buy. Walmart is offering consumers a wide range of goods at rock bottom prices and therefore meeting the market test.” (PBS Frontline,