industry case write up
NCSU - College of Management
Industry Case Write-Up
Close examination of Wal-Mart
Yanlong Li
2/8/2009
Yanlong Li
BUS 340 – 001
2/8/2009
Industry Case Write-Up
The retail industry has always been in the frontline of utilizing information technology infrastructures and information systems. Many major businesses within the industry quickly adopt and adapt the new way of doing business, tracking shipments, and monitoring inventories – all through the utilization of new technologies and electronic communications. Wal-Mart, being the industry leader in low cost operations and low price products, surpasses its competitors, such as Target, J.C. Penney, Sears or any other major discount stores in the U.S., in its operational efficiency and resource management. That provides War-Mart the competitive advantage over its rivalries, making it the number one place to shop for low price products, groceries and other items. By having low operation costs and keeping inventories low, this allow Wal-Mart to survive the furious market competition, this is especially true when consider the current economic situation, where the consumer spending will is low, Wal-Mart becomes the ultimate place to shop for bargain price. This makes Wal-Mart stands out of the rest even further and making it the company that this case write-up is all about.
Just like every other industry, the retail industry no doubt follows closely to the Porter’s Model and the five fundamental forces within the framework of the model – entry of competitors, threat of substitutes, bargaining power of buyers, bargaining power of suppliers, and rivalry among the existing players (ValueBasedManagement). Within the retail industry, the potential for entry of new competitors is very low and rare, since the starting cost is huge and not to mention the infrastructures, buildings, equipments, contracts with suppliers, utilities, and other costs, all have to put in place even before the actual store is opened. The
Industry Case Write-Up
Close examination of Wal-Mart
Yanlong Li
2/8/2009
Yanlong Li
BUS 340 – 001
2/8/2009
Industry Case Write-Up
The retail industry has always been in the frontline of utilizing information technology infrastructures and information systems. Many major businesses within the industry quickly adopt and adapt the new way of doing business, tracking shipments, and monitoring inventories – all through the utilization of new technologies and electronic communications. Wal-Mart, being the industry leader in low cost operations and low price products, surpasses its competitors, such as Target, J.C. Penney, Sears or any other major discount stores in the U.S., in its operational efficiency and resource management. That provides War-Mart the competitive advantage over its rivalries, making it the number one place to shop for low price products, groceries and other items. By having low operation costs and keeping inventories low, this allow Wal-Mart to survive the furious market competition, this is especially true when consider the current economic situation, where the consumer spending will is low, Wal-Mart becomes the ultimate place to shop for bargain price. This makes Wal-Mart stands out of the rest even further and making it the company that this case write-up is all about.
Just like every other industry, the retail industry no doubt follows closely to the Porter’s Model and the five fundamental forces within the framework of the model – entry of competitors, threat of substitutes, bargaining power of buyers, bargaining power of suppliers, and rivalry among the existing players (ValueBasedManagement). Within the retail industry, the potential for entry of new competitors is very low and rare, since the starting cost is huge and not to mention the infrastructures, buildings, equipments, contracts with suppliers, utilities, and other costs, all have to put in place even before the actual store is opened. The
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