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Unformatted text preview: Viviane Marani and Kristin Paisley Parton CBA 469 Mr. Parker WAL-MART CASE ANALYSIS 1. S-P-C Analysis Structure- Wal-Mart has only two main competitors, Target and Kmart, which have being facing though times due to Wal-Marts leadership in channel management, inventory control, distribution, and customer service. Also, by maintaining a steady supply of low priced goods with low inventory costs, Wal-Mart has raised the barriers to entry and decreases the level of competition. Conduct- The primary core competency that fueled their growth: fulfilling customer needs with a wide spectrum of products at &quot;everyday low prices&quot; at a one-stop shopping experience. Performance- Wal-Marts strong competitive advantage has being sustainable overall because it has power over the suppliers and can purchase goods cheaper than the competition. In addition, Wal-Mart can also differentiates through private branding, i.e. Sam's Choice, Great Value; therefore, they can become less dependent on branded manufacturers. 2. Porters five forces Rivalry Among Established Companies: Medium Pressure o Currently, there are three main incumbent companies that exist in the same market as Wal-Mart: Sears, Kmart, and Target. Target is the strongest of the three in relation to retail. o Target has experienced tremendous growth in their domestic markets and have defined their niche quite effectively. o Sears and K-Mart seem to be drifting and have not challenged Kmart in sometime. o The industry is facing its life cycle maturation. Potential Competitors : Low o Entry barriers are relatively high, as Wal-Mart has an outstanding distribution systems, locations, brand name, and financial capital to fend off competitors....
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- Fall '10