Analysis of the Context of Project of Walmart’s Fighting Hunger Project

    It is important to look at some internal and external elements of the company to review that how this project is going to be fit for their future strategy.

Core Competencies of Walmart

    The company has various core competencies which drives its business forward in its strategic direction. They have maintained a good culture, which allows them to get most out of their employees. They have developed a hardworking and efficient work culture. The other good thing about Walmart is their low cost operations so that they can develop products and provide them with lowest prices to customers, as it is important to fulfill their mission and vision. The low price starry attracts more customers, which allows them to get more business and sales. Their distribution is another core competency which allows them to manage their supply chain effectively as compared to its competitors. Moreover, they have developed a global supply chain by maintaining good relations with their suppliers.

Five Forces Analysis of Walmart’s Fighting Hunger Project

Bargaining Power of Buyers of Walmart

    The bargaining power of buyers is weak for the Walmart as it is enjoying good business terms with its customers. The company has large population of customers, which means that these customers are very much dependent on Walmart because of its low pricing strategy and they also like the brand. So, it is good for the company that buyer power is not a threat for them, as it is weak.

Bargaining Power of Suppliers of Walmart

    The company is one of the largest retailers in the world and they need so much quantity of supplies, which means that they are able to catch up with various range of suppliers’ available in the market. They can make effects on their suppliers rather getting affected by their bargaining power. The suppliers are competing with each other and it is easy for the company to switch to any suppliers in the market, which means that bargaining power of suppliers is weak and pose no considerable threat to the company.

Threat of Substitutes of Walmart

    The threat of substitute for Walmart is also weak because they have so many elements to stay ahead in the competition. The company has great variety of products and it is hard for any retailer to match that variety. Moreover, the company also provides this variety at lower costs whereas it is hard for competitors to remain at this low cost level with so much variety, so company is not facing any considerable threat in this regard. If company would not have such variety with low prices, and there would have been less number of products, then they might have faced this threat.

Threat of New Entrants of Walmart

    It is important to understand that new entrants can certainly invest heavy amount in this retail sector and can come up with new retail chains to challenge Walmart. The cost of doing business in the retail sector is bit lower than the other sectors. The capital costs are also moderate. Moreover, suppliers are easily available in the market to get similar kind of products. It means that threat of new entrants for the Walmart is high and strong and they need to keep this fact in mind, while deriving their future strategy.

Competitive Rivalry of Walmart

        The competition in this industry is strong and much similar kind of retailer stores are operating in the market. They also have their own strategies to attract customers, and through an extensive competition. The number of firms is large, which makes competition tougher for Walmart. Moreover, these firms also come up with aggressive competing strategies as well. It means that competitive rivalry in the industry is high and strong, and Walmart has to keep doing different things to stand out in the competition (GREENSPAN 2018)

References of Walmart’s Fighting Hunger Project

GREENSPAN, ROBERTA. 2018. Walmart Inc. Five Forces Analysis (Porter’s Model), Recommendations. Accessed December 11, 2018. http://panmore.com/walmart-five-forces-analysis-porters-model-case-study.