Walmart Stores, Inc.

According to the case, I think that Walmart facing problem is always low price attract the customers buy the products. Through lower price to sell products, it should be disturbing the markets.

I want to use 5- forces to analyze the Walmart strategy. Threat of entry is low, Walmart is the biggest stores in the world, it must be need enough money. Bargaining power of suppliers also low, because the switching cost is low and these products have lots of substitutes, Walmart can corporate with others. But if the cost too low, the products will be disqualified. Treat of substitutes are very high, due to customers switching costs are low, customers can choose another product for other supermarket. Intra-Industry Rivalry is high, there are many similar sizes stores in the united states such as target.

Through the SWTO method to analyze Walmart, the strength is that has powerful brand, it is difficult to replace. The opportunity is that new location is able to provide it development. The weakness it shouldn’t use low price to attractive customer, other stores also can use this way to attract customers. The threat is substitutes more easily.

My recommendation to resolve this problem is that Walmart should adopt other ways to lure customers, always low price will cause the malignant competition for each stores. Walmart can hold a customer appreciation event and give out a special gift.

The main advantage of CIF is that it allows the enterprise to enforce common standards while enabling analysis and reports between different business units.Another advantage that the smaller spokes in the hub-spoke architecture allow small business units to do their own staff and meet their needs quickly at low cost.