Supplier power the suppliers of a commodity influence

Info icon This preview shows pages 3–5. Sign up to view the full content.

View Full Document Right Arrow Icon
Supplier Power The suppliers of a commodity influence its price and quality (MindTools, n.d.). People who sell groceries dominate a sizable portion of the Indian market. The grocery suppliers will have a great influence on the prices that Wal-Mart will retail its groceries at. The suppliers will also determine the price of other commodities. Buyer’s Bargaining Power Buyers have the power to force the prices to move down (MindTools, n.d.). They can demand high quality of the products supplied and play competitors against one another. The entrance of Wal-Mart in India serves to introduce a new form of trade in the market. Buyers will
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
BUSINESS 4 want to test it and if it seems worthwhile, they will take it. They will chose Wal-Mart over other competitors. It will serve to increase profits earned. Potential Entrants The Indian market is not likely to be threatened much by new entrants. They will experience market barriers such as government restrictions. The restrictions will ensure competition is kept at check allowing for domination. Greenfield Investment The best way to enter a new market is through the greenfield investment. An organization is built from bare scratch and moves on. I find the method applicable since it has been applied by Coca Cola and Starbucks to gain entry all around the world. Location Characteristics When an organization is built from the ground, it is in a position to control its aspects such as development and transportation. It ensures that the organization does not inherit already set structures in acquisition or joint ventures. The organization makes its own decisions.
Image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern