Preview

Walmart's Value Chain Analysis Essay

Satisfactory Essays
Open Document
Open Document
134 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Walmart's Value Chain Analysis Essay
The U.K. grocery market is highly diverse, with a wide range of formats, from convenience stores to hypermarkets, warehouse clubs and online stores. The market is currently led by five grocers (Tesco, Sainsbury, Wal-Mart‘s Asda, Morrisons and Cooperative Group), accounting for almost 55% of grocery retail banner sales, while the remaining 45% is attributed to hundreds of outlets scattered throughout the country (Planet Retail). Over the years, large players have continued to expand, both in terms of size, product range and services, increasingly taking market share from their smaller competitors.

In general, each retail chain focuses on specific market segments. For example, Tesco targets the middle market, providing both economy and upscale

Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Powerful Essays

    Uk Supermarket
    • 2041 Words
    • 9 Pages

    Uk Supermarket

    2.0 PORTERS FIVE FORCES MODEL FOR UK SUPERMARKET INDUSTRY Supermarkets’ performance is reliant on consumer’s income and their willingness to spend. The growing consumer pressure to drive value, quality and taste requires companies with strong management teams to understand the market trends in the industry of which this had led to constant competition among firms in the industry. This rivalry is based on firms in the industry battling to win the highest market share in the industry (IBISWorld). However, the UK supermarket industry has witnessed rapid growth since the establishment of its first service shop in 1950. The UK supermarket industry is an oligopolistic market with an annual growth rate of 1.5% in 2011. The industry has employed a total of 923,196 people and has generated a sum of £127 billion in revenue (IBISWorld). Furthermore, more than 50% of the market share in the industry is controlled by TESCO, ASDA, Sainsbury’s and Morrisons (BBC). Porter (1980) illustrates in this analytical tool 5 variables that determine the attractiveness of an industry for organisations in terms of profitability in their immediate environment. Using the forces in this model we can analyse how attractive the UK Supermarket industry is to enter, the 5 forces are as follows.…

    • 2041 Words
    • 9 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Value Chain Analysis
    • 1376 Words
    • 6 Pages

    Value Chain Analysis

    Thormahlen, Casey (Oct 2010); End of the reel: Demand will fall as consumers opt for video-on-…

    • 1376 Words
    • 6 Pages
    Powerful Essays
    Read More
  • Best Essays

    Asda Analysis
    • 3149 Words
    • 13 Pages

    Asda Analysis

    * Mintel retail research (November 2011) Food Retailing - UK Executive Summary (Online) Available from: http://academic.mintel.com.lispac.lsbu.ac.uk/display/545201/?highlight=true (Accessed 22 October…

    • 3149 Words
    • 13 Pages
    Best Essays
    Read More
  • Satisfactory Essays

    Loblaws Business Strategy
    • 550 Words
    • 3 Pages

    Loblaws Business Strategy

    The grocery industry is a commoditized industry, which makes it difficult for grocers to sustain through differentiation. Buyer power is high and thus, cost leadership and operational efficiencies are critical. There is fierce competition amongst various grocery stores, with the main players such as Loblaw and A&P holding multi-banner stores in various market segments. Traditional grocery stores also lose some of their market share to drug stores, convenience stores and other retailers who have entered the industry. Threat of substitutes from fast-food and take- away outlets is not as prevalent, since many grocery stores have started stocking ready-to-eat meals and have deli services available for consumers. Competitive pressures are increasing in the industry with the potential entry of Wal-Mart and new delivery methods such as the internet.…

    • 550 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Better Essays

    Value Chain Analysis
    • 2679 Words
    • 8 Pages

    Value Chain Analysis

    Value chain analysis is a method to review all the activities in an organization that contribute to maximizing competitive advantage and customer delight while identifying non value added waste and costs in the value chain process (Walter & Rainbrid, 2007). The purpose of this paper is to analyze Amazon’s value chain. Amazon’s mission statement reads as “our vision is to be earth’s most customer centric company; to build a place where people can come to find and discover anything they might want to buy online.” This paper will provide facts to analysis if this mission has been accomplished (“About amazon,”).…

    • 2679 Words
    • 8 Pages
    Better Essays
    Read More
  • Good Essays

    Wal Mart Industry Analysis Essay Example
    • 1210 Words
    • 5 Pages

    Wal Mart Industry Analysis Essay Example

    Treat each other as we would hope to be treated , acknowledge our total dependence on Associate-partners (employees of the company) for our success.…

    • 1210 Words
    • 5 Pages
    Good Essays
    Read More
  • Powerful Essays

    Value Chain Analysis
    • 1275 Words
    • 5 Pages

    Value Chain Analysis

    Although, primary activities add value directly to the production process, they are not necessarily more important than support activities. Nowadays, competitive advantage mainly derives from technological improvements or innovations in business models or processes. Therefore, such support activities as ‘information systems’, ‘R&D’ or ‘general management’ are usually the most important source of differentiation…

    • 1275 Words
    • 5 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Value Chain Analysis
    • 451 Words
    • 2 Pages

    Value Chain Analysis

    The purpose of this essay is to evaluate the reasons for value chain analysis and the different ways Verizon Communications Incorporated can gain a competitive advantage over their competition. “Based in New York and incorporated in Delaware, the company was formed on June 30, 2000 and was developed from a merger between Bell Atlantic Corporation and GTE Corporation” (Verizon, 2012).…

    • 451 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Value Chain Analysis
    • 829 Words
    • 4 Pages

    Value Chain Analysis

    Value Chain Analysis describes the activities that takes place within and around a business and relates it to the competitive strength of the business. According to Michael Porter who introduced the value chain analysis concept suggested that the activities which an organization carries out adds value to the services and products which it produces. In order for a business to gain competitive advantage, their activities should be directed at its optimal level efficiently so that the value obtained will exceed the organizations cost of operating. A company’s value chain comprises of two extensive groupings of activities, the primary activities which are directly concerned with creating value for customers and then there are the support activities that facilitate and enhance the performance of the primary activities. Value chain incorporates the entire organization. It looks at how primary and support activities work together to help the organization create a superior competitive advantage.…

    • 829 Words
    • 4 Pages
    Good Essays
    Read More
  • Good Essays

    Supermarket Market Analysis
    • 13134 Words
    • 53 Pages

    Supermarket Market Analysis

    {text:bookmark-start} {text:bookmark-start} {text:bookmark-start} {text:bookmark-end} {text:bookmark-end} Executive Summary {text:bookmark-start} {text:bookmark-end} {text:bookmark-end} In the UK, the supermarket and superstore market continues to grow. In 2002, retail sales of food through supermarkets and superstores reached an estimated £83.68bn, a growth of 5.1% on the previous year. {text:bookmark-start} {text:bookmark-end} The market is composed primarily of major chains, with outlets nationwide. Alongside these are smaller operations with a traditionally regional bias, although most of these chains are currently expanding nationwide. In addition to these are the limited assortment discounters (LADs). In general, these are operated by European firms and offer basic food products aimed at the lower end of the mass market. {text:bookmark-start} {text:bookmark-end} In 2002, the threat of a slowdown in consumer spending contributed to a renewal of competition on price. The major companies are also carrying out large-scale store refit programmes, in addition to the expansion of outlet numbers. Smaller-format stores are becoming more frequent, resulting in increased competition with smaller, independent retailers. Supermarkets are expanding further into the convenience market. This is a further means of securing customer loyalty, and comes in a year when customer-loyalty schemes have been rejuvenated. {text:bookmark-start} {text:bookmark-end} Wal-Mart's acquisition of ASDA Group Ltd in 1999 has seen the company's stores offer a greater range of non-food products — a move that has been followed by Tesco PLC. Most of the major multiples are incorporating rising numbers of non-food lines into their future development plans as a means of competing with Wal-Mart. Larger superstores are increasingly moving away from traditional, basic food lines to include a wider variety of products and services. {text:bookmark-start} {text:bookmark-end} As store refit programmes…

    • 13134 Words
    • 53 Pages
    Good Essays
    Read More
  • Good Essays

    Mc Donald's Value Chain Analysis
    • 3191 Words
    • 13 Pages

    Mc Donald's Value Chain Analysis

    McDonald’s produces and markets different types of products with different prices in different geographical areas. Nevertheless, their food quality, service, cleanliness &values are the same for everywhere.…

    • 3191 Words
    • 13 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Value Chain Analysis
    • 319 Words
    • 2 Pages

    Value Chain Analysis

    The following Ofiicers from the Nyeri County ASDSP office will be involved in the exercise-;…

    • 319 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    Value Chain Analysis
    • 484 Words
    • 2 Pages

    Value Chain Analysis

    The diagram above shows us a chain of activities for a company that operates in a specific industry. It suggests that organisations that go through this chain of activities will add more value to their product/services, so that the company will gain marginal value for their products/services. If the activity runs efficiently, this specific company can gain advantage over other competitors. The Porter Value Chain classifies into different groups as product and support activities.…

    • 484 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    Strategic management business analysis
    • 8751 Words
    • 36 Pages

    Strategic management business analysis

    Superstores have had a significant impact on the retailing sector, with 504,800 retail outlets in 1971 reducing down to 320,000 units by 1995 (the fastest rate of decline occurred from 1980 onwards). As Figure 14.1 demonstrates the market share of the four largest grocers of Tesco, Sainsbury, Asda and Safeway rose from just over 35 per cent in 1990 to almost 42 per cent in 1996. This increases to 58 per cent for the nine largest supermarket chains. They had over 63 million square feet of retail space and almost £50 billion of sales from over 3600 stores (see Attachment 14.2c in Section 14.3, page 195).…

    • 8751 Words
    • 36 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Value Chain Analysis
    • 5973 Words
    • 24 Pages

    Value Chain Analysis

    Development of the agricultural sector is one of the strategic choice to support national and regional economy, especially after the economic crisis experienced by the countries of Southeast Asia since mid-1997. The choice is based on the consideration that the agricultural sector has repeatedly proved itself as a sector that is resistant to the economic crisis and an asset of wealth for the welfare of society as well as for overall economic development activities. In addition, the resources-based state of Indonesia is in the primary sectors (including agriculture in the broad sense, both in terms of abundance of natural resources and largeness of potential available labor). Therefore, the Indonesian government should continue to develop the agricultural sector because it has an important role as a producer of food, foreign exchange, employment opportunities, as well as a market for industrial products.…

    • 5973 Words
    • 24 Pages
    Powerful Essays
    Read More