Swot Analysis of the External Environment of Asda Wal-Mart Essay
Wall-Mart s the largest retail chain in the world, and the second biggest supermarket chain in the I-J. The retail industry is heavily customer focused and as such Sad Wall-Mart should closely consider the needs of its customers. This is shown by the fall in market share in 2005 when competitors will have offered customers a better reason to shop with them rather than Sad. Low Power / High Interest Competitors while unable to exert much power over Wall-Mart have a high degree of interest in them.
The case study indicates that Sad concentrates on building market share on the back of low prices, any competitor in the low price segment of the arrest would have a high degree of interest in Sad. The rise in sales growth in non- food lines of 25% also shows that other retailers, not Just supermarkets should also be interested in Sad Wall-Mart. Competitors could use their buying power to influence Sodas suppliers but there is little evidence of this in the case study.
Competitors should also be interested in Wall-Mart due to history of buy-outs and joint ventures as well as the claim of Sad being the most affordable supermarket in the I-J. The items
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This is also shown in the fact that Wall-Marts trade with China outstrips that of the I-J. Low Power / Low Interest Communities are not immune to the Sad Wall-Mart effect. The case study highlights that while welcomed by some, they heavily affect others in a community. This has lead to smaller competitors being driven out of business causing some communities o have to travel greater distances to shop.
Conclusion The case study shows that while there are many external stakeholders customers have the highest power and interest out of the external stakeholders. Sad Wall-Mart must pay particular interest in this group if they are to continue to maintain or grow their market share within the I-J. Word count: 547 References Open University (2009) Analyzing Business Cases: Resource Book 1 , The Open University, Milton Keynes Capon, Claire (2000) Understanding Organizational Context, Financial Times/ Prentice Hall.