Porter's 5 Forces analysis of Wal-Mart Stores Inc Success Strategies In Recessionary Environment Case Solution

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Porter's 5 Forces analysis of Wal-Mart Stores Inc Success Strategies In Recessionary Environment Case Study Analysis

Porter's 5 Forces AnalysisA Porter's 5 Forces analysis of Wal-Mart Stores Inc Success Strategies In Recessionary Environment Case Solution could be performed to design different techniques using the strengths of the company to obtain opportunities, conquer weaknesses and to minimize the threats. It might also be utilized to assess that how specific weaknesses withstand specific opportunities and increase the dangers. The strategies prepared utilizing the Porter's 5 Forces analysis of Wal-Mart Stores Inc Success Strategies In Recessionary Environment Case Analysis are offered as follows;
• Usage of strong global brand position and funds in expanding towards potential markets.
• Distinct brand name experience could assist the company to much better position itself in new markets.
• Resistance in expansion in the potential international markets motivating diversity.
• High rates restricts the growth in various Asian and African nations with low per capita income.
• Strong brand recognition, non-traditional ways of marketing and the special brand experience could be utilized to lower the risk from possible clients.
• Strict look policies could led to the consumer shift towards Victoria with high social duty.
• Limited target markets could led to a decrease in the overall market share of the company.
These methods could assist the company to improvise its market position and be at the leading position in the market.

Financial Analysis


Financial analysis for Porter's 5 Forces analysis of Wal-Mart Stores Inc Success Strategies In Recessionary Environment Case Analysis could be conducted to examine the accessibility of funds to the company that could be made use of in expansion towards global markets. The financial position of the company might be examined by utilizing the information given up the case Display 1. The ratios that could be thought about in monetary performance analysis are given in the Table 1 below;

From the above Table 1, it could be seen that the company has a sensible financial efficiency with a ROE of 7.9% and a high sales growth of 18.4%. Although, a 4.3% net revenue margin does not appears to be potential and the business should put efforts in increasing its profits together with reducing its operational expenditures to increase its profit margins.

Porter's 5 Forces analysis of Wal-Mart Stores Inc Success Strategies In Recessionary Environment Case Solution

Segmentation

Most of the company's Brick and Mortar shops are located in US including above 500 stores in almost each of the state of United States. The business has also a worldwide presence in 8 various nations with its highest number of stores located in United Kingdom i.e. 21. The companyhas an overall of 54 stores in international markets that is probably the 10% of its shops in the United States.

Targeting


The company targets its clothes brand name to the young, tall and attractive teenagers and kids that are thought about to be cool. This targeting policy is responsible for different differences in the company related to its competitors. The company employs great looking guys and women for its shops and follows a stringent look policy to maintain destination of good-looking individuals towards its stores and supply a special brand experience.

Positioning


The company has placed its brand as a high-end brand name targeting only a specific market segment. The company with its non-traditional methods of marketing through designs and agents posters its brand name image as a high-end clothing brand name targeted to the cool and attractive personalities in society. This market position attracts numerous elite people towards the brand name however it hurts the company's position in different neighborhoods focused at the equality in society.

External Analysis

Competitor Analysis


Porter's 5 Forces analysis of Wal-Mart Stores Inc Success Strategies In Recessionary Environment Case Solution faces a lot of competition in the market with the presence of various number of rivals in the market. Space is also considered to be a potential rival in local as well as in global; markets as the business is considering to shift in the international markets.



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