Walmart Competitive Analysis

1136 WordsApr 9, 20095 Pages
| | | | | | |[Wal-mart case analysis] | |Competitive advantage and competitive dynamics | What might explain Wal-Mart’s performance over time in discount retailing? Is it the industry or company specific factors? |Post Second World War, the style of style of retailing in the…show more content…
1. Vendor consolidation and growth: Whereas in 1986, the top five discounters had accounted for 62% of industry sales, in 1993 they accounted for 71, and discount stores companies that operated 50 or more stores accounted for 82% 2. The discount stores have grown in excess of 7% all through 1970s, 1980s, and 1990s in terms of revenue though the increase in number of stores were not proportionate 3. Improvement in information dissemination by means of media that increasingly drove consumers to discounters While the industry was on an up-tide, it was Wal-Mart’s well navigated strategy that allowed it to perform well above its industry peers. Would you consider this performance to be sustainable (discount retailing in 1994)? |Our above analysis shows that Wal-Mart clearly has a competitive advantage over its peers in most of the segments it operates in. However, our analysis elaborated below demonstrates the following key | |observations outlining the sustainability of its performance, | | | |Our overall analysis shows that the business of Wal-Mart looks fairly sustainable
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