Condiering the comeptetive forces anlaysis ofr all three : • Rivalry in the industry: This is fairly weaker; however Wal-Mart enjoys the topmost slot because of lowest cost, prices and more profits and market share as compared to Amazon and eBay. Because of no entry barriers the market is full of competitors. • Threat of
Walmart Versus Publix Both Walmart and Publix have their pros and cons, and they are both one of the largest and most successful companies in the world. However, there are many differences, and similarities between these two companies. Walmart and Publix are always trying to provide the lowest prices to customers. Both companies want their image to be better than the other, and feel the need to attract more customers. Finally, customer service is a major factor in any business, especially in such a demanding company like these two.
The article “Labouring the Walmart Way,” author Deenu Parmar talks about how Walmart is able to achieve selling goods at a lower price then any average superstore. The author goes on to explain that Walmart’s antiunion efforts, employee selection, low prices and high retention rate all contribute to their major success. Walmart’s stance on ant unionism allows them to keep wage cost down and keep all their profits up. Not allowing a union keeps Walmart with the power to keep low wages and force unpaid overtime. The author goes on in detail about Walmart’s employee selection process and the unique attributes they look for.
Wal-Mart also strives and lives on the motto of “Every day Low Prices.” This motto has gone so far that they now price match to other stores for the customers. This simply means that if the same product is found at another store for a cheaper price Wal-Mart will sell it to the customer for the price that it was found listed as at the other store. Customer
Aligning themselves be more competitive in the grocery store market share, Wal-Mart began offering organic foods in their stores, cheaper than their nearest competitor Whole Foods was doing (Ferrell, Hirt, Ferrell, 2009). When the economy experienced a downturn, more consumers were spending their money on the daily necessities and no longer buying luxury items that were not necessarily needed. Wal-Mart saw their profits increase because of their low price guarantee, low prices on prescriptions and a new focus on becoming
Walmart has succeeded in achieving the leading position in the retail industry. Walmart now stands as the biggest retailer in the world. However, the external factors constitute pressure on the company that must be address carefully. By analyzing the five forces of external factors we will define the nature and power of our rival power in the market. The five factors are competitors from rival, potential new entrants, substitute products, supplier bargaining power and customer bargaining power all of these competitive forces affecting Walmart position.
Currently Wal-Mart is one of the biggest stores in all of America. It currently hold various stores nationwide and worldwide. Our reason in including Wal-Mart as one of our greatest competitors is because of their vast amount of merchandise. Although, JCPenney and WalMart contain some minor similarities, WalMart is targets more the masses. While, JCPenney tries to find their customers by their marketing strategies.
Since both the company’s market share so large, the market is very close to a duopoly (other players having a very small impact on the market). Hence we assume this to be a situation of duopoly. The 2 companies sell products which are very close substitutes and are constantly fighting for greater market share. A person may buy a Coke product instead of a Pepsi one, and vice versa. The objective of both is to maximize their profit.
This gives them a sense of pride to buy a limited edition of products which they find at Zara stores only. Zara invests around .3 % of its revenues in advertising as compared to its competitors who invest around 3-5 % of their revenues in advertising. This increases its availability of funds for investments in design and in-house manufacturing rather than cutting the cost on these crucial operations. The lack of advertising is compensated by placing the stores at popular locations with good footfall and thus raising the customer inflow by the virtue of its store locations. Zara has been able to maintain a loyal relationship with its
Amazon’s competitive strategy is cost leadership. Amazon has achieved a lot on a great scale that it gets the best prices from its vendors so they can operate in very flexible and thin margins and sell their items easily at retail prices and make money. They also provide shipping products for a reasonable cheap price. They also have improved their warehouses by giving some space to other sellers who want to sell their items through Amazon. They differentiate and provide better quality than their competitors across the industry.