Walmart Strategic Analysis

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1. Key changes in Walmart strategic position The key changes that Walmart is facing toward their strategic position are external changes, and the changes identify are: ● The competitors, especially Amazon in the e-commerce and now they are penetrating the physical retail segment. ● The rise of the internet in the past years, which is changing the retail business. ● The customers moving online. To analyze this challenges the paper will present an external analysis, industry analysis with and internal analysis, to identify how the competitive advantage regarding this framework would help Walmart to improve their strategies. 1.1. External Analysis: Pestel Analysis From the Pestel Analysis described in the Appendix A, the factors that are…show more content…
It is important for Walmart to have in consideration external factors regarding this force shown in Appendix C. The large quantity of customer also brings a high demand of products making a significant impact on Walmart, because they always have to be aware of satisfied the customer’s needs, but the diversity of customers counteract and the firms have the opportunity to identify and segment the buyers. Bargaining Power of Suppliers  Medium / Low This force have an intermediate impact between medium and low on Walmart, because in the industry companies can find many suppliers, so the power that the retail companies have on the suppliers is more stronger than the one that the suppliers have on the retail firms. Taking in this situation in consideration Walmart must address some factors to contribute with this force, shown in Appendix D. This factors are the main reason why the suppliers have to maintain good relationships with the retail firms, in order to win space in the retail stores and be competitive among the other suppliers. Walmart have a good relationship with their suppliers and it is possible to see it due the amount of products the company provide to the…show more content…
The products received from the suppliers are cross docked at the distribution centers and then forwarded to the stores. This keeps the inventory and transportation costs low and cuts down on the time needed for transportation and thus eliminates efficiencies. In this way, the company support their infrastructure, by having more than 6.200 units outside U.S., 11,718 stores and clubs in 28 countries and serves over 100 million customers weekly worldwide it is important that the Walmart stores have to be immediately replenished without having to wait for long periods, and this is possible because of the Cross Docking practice, that has reduced the costs for Walmart and the benefits can be passed on to the customers. Walmart have more than 150 distribution centers and are the hub of activity for its

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