Wal-Mart Strategic Management Essay Example | Topics and Well Written Essays - 2750 words

Wal-Mart Strategic Management - Essay ExampleBut certainly the situation was non the very(prenominal) in the late 1950s or early 1960s, when Wal-Mart began its op successiontions. Porters five forces analysis proves to be quite profitable in finding out the attractiveness of an diligence.Porter came out with the five forces analysis, which helps in analyzing the attractiveness of an industry by taking into account different aspects of the business. Porters Five Forces pay off become a yardstick for assessing industry profitability. This helps the retailer in consistent performance and planning. The five forces areSuppliers In todays context, large supermarkets like Wal-Mart have the overwhelming advantage over the small shopkeepers, as they are in a position to rate the price they pay to the suppliers. The situation may not be as challenging for suppliers as now, scarcely the lucre of supplying large quantities to reputed companies had always been there, as it helps the suppl iers to leverage the economies of scale. Well, the number of stores of Wal-Mart and its presence was not as prevalent as today, but we must also take into account that the population and number of customers to a fault was less. Therefore, eve if we go back by about 55-60 years, we could easily figure out that the power of suppliers was not substantial enough to dictate terms to Wal-Mart. This helped the company to further strengthen its implication retail business. contender Competition in the retail business is a relatively newer phenomenon. The era of colonialism can very salutary be said to have given shape to the trend of globalization, but the roots of modern era of globalization came on the horizon in the late 1970s or early 1980s. Policies of liberalization by many countries around the world provided the all important catalyst to the modern era of globalization. There were thusly some reputed companies like K-Mart, Sobeys Inc, Family Thrift Centre etc in the retail busin ess when Wal-Mart came out its concept of discount retail business, which might have given interesting competition to Wal-Mart even during those early days.Potential Entrants look at the number of retailers and timeline of their origin, it becomes quite clear that the retail business seemed to attract quite a a few(prenominal) entrepreneurs. Dans Super Market, Wallys Supermarkets etc. are some of the new entrants during the 1950s, which found the retail business quite attractive. Therefore, musical composition carrying out the discount retail business, the threat of new entrants was quite genuine one for the company even during those days. Buyer/ Customers Power If we go by the present circumstances, it is amply clear that today the customer is hence treated like a king. Today companies believe in trying all out efforts to encounter the attention of the customers and provide them with attractive discounts, better quality products and services. But the situation