• Potential Competitors: Medium pressure o Grocers could potentially enter into the retail side. o Entry barriers are relatively high‚ as Wal-Mart has an outstanding distribution systems‚ locations‚ brand name‚ and financial capital to fend off competitors. o Wal-mart often has an absolute cost advantage over other competitors. • Rivalry Among Established Companies: Medium Pressure o Currently‚ there are three main incumbent companies that exist in the same market as Wal-Mart: Sears‚ K Mart
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BARGAINING POWER OF SUPPLIERS The main items that Wal-Mart procures to pursue its operations can be classified into 3 main categories of merchandise‚ labor‚ and stores. Given the size of Wal-Mart’s operations and its focus on continuous cost improvement‚ none of these suppliers have significant bargaining power on Wal-Mart. When analyzed in detail: * Merchandises * As the biggest retailer in U.S. with up to 30% market share in some categories‚ Wal-Mart is the single biggest buyer for most
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Threat of New Entrants: Low The food processing industry is very large and competitive; it is not uncommon for firms within the industry to do quite well. As a result‚ many companies enter into the market every year in an attempt to gain a portion of the profitable market. Luckily for Nestlé‚ the company has been around in China for decades and boasts a long history of quality products and consumer satisfaction‚ which has allowed the company to obtain a considerable share of the market. It is
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Logistics Practice Paper 2012 Section 1 1. Explain the following concepts 1. Extended enterprise 2. Terminal delays 3. Reorder level 4. VMI 5. Pipeline inventory 2. Read the case and answer the following questions Mumbai Flour mills provide high-quality bakery flours to commercial bakers as well as to the consumer market. The commercial buyers have consistent demand and brand-loyalty‚ whereas consumers have minimal brand-loyalty but also generally prefer
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1776. The Fourth of July became Independence Day in the United States USA FLAG: USA FLAG FLAG HISTORY: FLAG HISTORY On January 1‚ 1776‚ the Continental Army was reorganized in accordance with a Congressional resolution which placed American forces under George Washington ’s control. On that New Year ’s Day the Continental Army was laying siege to Boston which had been taken over by the British Army. Washington ordered the Grand Union flag hoisted above his base at Prospect Hill. It had 13 alternate
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There is continuing interest in the study of the forces that impact on an organisation‚ particularly those that can be harnessed to provide competitive advantage. The ideas and models which emerged during the period from 1979 to the mid-1980s (Porter‚ 1998) were based on the idea that competitive advantage came from the ability to earn a return on investment that was better than the average for the industry sector (Thurlby‚ 1998). As Porter’s 5 Forces analysis deals with factors outside an industry
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NOKIA’S PESTEL ANALYSIS Political: As markets are deregulates both operators and manufacturers are free to act independently of government intervention. In Countries like India and China where Partial regulations exist‚ government intervention does take place. That is why‚ Nokia can sell as much as they want‚ without restrictions. Economics: With incomes rising‚ people have more disposable income‚ which enables consumers to be more selective with their choice of mobile phone‚ looking to
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have high bargaining power over a company‚ then the company’s industry is less attractive. The bargaining power of suppliers will be high when- There are many buyers and few dominant suppliers- There are undifferentiated‚ highly valued productsAs an example of IKEA‚ in recent years‚ had heard from its customers thatmany of its furniture offerings were too complicated to be assembled by the customer;showing the power of the supplier to make a difference‚ IKEA has gotten cooperationfrom some suppliers
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comprising four sections‚ one for each of the SWOT headings: Strengths‚ Weaknesses‚ Opportunities‚ and Threats. The SWOT template below includes sample questions‚ whose answers are inserted into the relevant section of the SWOT grid. The questions are examples‚ or discussion points‚ and obviously can be altered depending on the subject of the SWOT analysis. Note that many of the SWOT questions are also talking points for other headings use them as you find most helpful‚ and make up your own to suit the
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PESTEL ANALYSIS- POLITICAL- • Liberal policies of the Indian government make it easier for foreign retailers to compete with Indian retailers thus increasing the competition. Indian government has given signs of dropping its traditionally protectionist stance and opening up its retail market to greater overseas investment. In 2007 it eased restrictions on foreign investment‚ allowing overseas retailers to own 51% of outlets as long as they sell only single-brand goods. • Government
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