Wal Mart Case Analysis using Porter's Model Study

Wal Mart Analysis using Porters Model - Case Study ExampleThis helps in meliorate the supply cooking stove and ruggedering the cost of distribution. Third competitive receipts is its advanced technology of entropy mining. With the help of data mining, they are suitable to gather useful data for the suppliers, improves customers satisfaction with the help of finished demand forecast. The cost is reduced as there is no excess of inventor. The forth competitive advantage is Wal Mart work force culture. It values more for the customers it is not compromised in any ways. The stores are able to response quickly to the changing demand. Lastly its the EDLP (everyday suffering bell). With the help of EDLP customer satisfaction is change through low price. The advertising cost is also reduced and steady price improves the supply chain (Quelch, p.189-192). The individuals can easily shift to some other competitors who offers product at a lower price than Wal-Mart. But the consumers wi ll lose the convenience with the organization. Thus the power of consumer is medium. Entry barriers for new players are high up compared to its competitors due to high initial set up costs such as distribution impart and this is because Wal-Mart has good distribution systems, huge brand name. Wal-Mart has an absolute cost advantage. Therefore the threat of new appetizer is low. Threat of substitute is low as there are not many companies which offer low pricing and convenience. The customers may switch off to other speciality stores but they would not find the low pricing strategy of Wal-Mart.