| | Walmart |
| | Rossana Nieves |
| | Instructions: (Only fill out columns C & D) |
| | Column C: is your answer 5 Force Determinant (Low, Medium, High) |
| | Column D: is the importance factor (1=low, 2=medium, 3=high) - don't leave blank | | | | | | | | FOR TINGLESA |
| | Columns E,F,G are formulas (DON'T Change) |
| | Comments column is free to write |
| | | INPUT | | DON'T CHANGE | | | Comments | INV | Opportunity | Threat | N/A |
| | | 5F Answer | Importance | Threat of New Entrants |
| | Barriers to Entry Factors | L,M,H | 1,2,3 | LOW | MEDIUM | HIGH | | | | X |
| | - Economies of Scale | H | 3 | 3 | 0 | 0 | Products positioned in the market/low prices/ brand reputation | * | | X |
| | - Product Differentiation, brand loyal base | H | 3 | 3 | 0 | 0 | Products positioned in the market/low prices/ brand reputation | * | | | X |
| | - Switching cost | | | 0 | 0 | 0 | | * | | X |
| | - 1st Mover Advantage | H | 3 | 3 | 0 | 0 | First in low prices | * | | X |
| | - Access to Distribution Channels | H | 3 | 3 | 0 | 0 | Great access | * | | X |
| | - Intelectual Property, Gov. Regulation | H | 3 | 3 | 0 | 0 | Own brand | * | | X |
| | - Barriers to exit | H | 2 | 2 | 0 | 0 | Highly specialized assets | * | | X |
| | - Response from leaders | H | 3 | 3 | 0 | 0 | | * | | X |
| | - Industry Growth | M | 2 | 0 | 2 | 0 | Solw grow R/S - Fast online grow | * | | X |
| | - Capital Requirements | H | 3 | 3 | 0 | 0 | | * |
| | - Other |
| | Total | | | 23 | 2 | 0 | LOW |
| | | 5F Answer | Importance | Bargaining Power |
| | Bargaining Power of Suppliers | L,M,H | 1,2,3 | LOW | MEDIUM | HIGH |
| | - Concentration of suppliers vs. industry players | L | 3 | 3 | 0 | 0 | Walmart is one of the main players to whom they supply products or services | | | X |
| | - Switching cost of buyers | H | 1 | 0 | 0 | 1 | For most suppliers, Walmart is their main buyer. | | | X |
| | - Differentiation of inputs | L | 3 | 3 | 0 | 0 | A little degree of differentiation between suppliers, low bargaining power | | X |
| | - Few substitutes for inputs | L | 1 | 0 | 0 | 1 | Greater the number of available substitutes the less bargaining power | * | X |
| | - Threat of forward integration | L | 3 | 3 | 0 | 0 | A large number of suppliers that guarantee the final product | | | X |
| | - Supplier dependance on heavily on indusry players | L | 1 | 0 | 0 | 1 | Supplier Diversity Program (mitigates dependency on a single supplier) | * | | X |
| | - Other |
| | Total | | | 9 | 0 | 3 | LOW |
| | | 5F Answer | Importance | Bargaining Power |
| | Bargaining Power of Buyers | L,M,H | 1,2,3 | LOW | MEDIUM | HIGH |
| | - Concentration of buyers | L | 3 | 3 | 0 | 0 | Large population of consumers ( no pressure) | | | X |
| | - Switching costs | L | 3 | 0 | 0 | 3 | Low consumer switching cost, Other rivalry | * | | X |
| | - Undiffentiated productS, commoditization | M | 2 | 0 | 2 | 0 | Alternative providers are easy to find and competitors are pitted against each other | | | X |
| | - Threat of backward integration | L | 3 | 3 | 0 | 0 | Not demand concessions or discounts | | | X |
| | - Industry purchase is large fraction of input cost | L | 3 | 3 | 0 | 0 | | | | X |
| | - High profit customers | M | 2 | 0 | 2 | 0 | | | X |
| | - Quality is not valued by customer | H | 3 | 3 | 0 | 0 | Search for low prices at medium quality | * | X |
| | Total | | | 12 | 4 | 3 | LOW |
| | | 5F Answer | Importance | Intensity of Rivalry |
| | Rivalry among existing firms | L,M,H | 1,2,3 | LOW | MEDIUM | HIGH |
| | - Compete on Price | H | 3 | 0 | 0 | 3 | strong online competition Amazon/ Target, and Grocey chains is very high | | | X |
| | - Fixed costs are high | H | 3 | 0 | 0 | 3 | | | | X |
| | - High unused capacity | M | 2 | 0 | 2 | 0 | A lot of traffic people at certain times | | | X |
| | - Perishable products | H | 1 | 0 | 0 | 1 | | | | X |
| | - Competitors are many and similarly sized | M | 2 | 0 | 2 | 0 | Few retail sotres/ stron online competition | | X |
| | - Industry growth is slow | M | 2 | 0 | 2 | 0 | Solw grow R/S - Fast online grow | | | X |
| | - Exit barriers are high | H | 3 | 0 | 0 | 3 | Highly specialized assets, which can be difficult to sell or relocate | | | X |
| | - Low chance of "collusion" | | | 0 | 0 | 0 | | | | X |
| | - Brand Identity | H | 3 | 3 | 0 | 0 | Low prices in the minds of consumers | * | X |
| | Total | | | 3 | 6 | 10 | HIGH |
| | | 5F Answer | Importance | Threat of Potential Substitute |
| | Threat of Potential Substitutes | L,M,H | 1,2,3 | LOW | MEDIUM | HIGH |
| | - Closeness of substitute, easy to switch | L | 2 | 2 | 0 | 0 | Few substitutes that offer a wide range of products/ fast online grow | | | | X |
| | - Performance : Price Relationship | L | 3 | 3 | 0 | 0 | Few substitutes that offer prices as low | | | | X |
| | - Other |
| | Total | | | 5 | 0 | 0 | LOW |
| | Source: Competitive Strategy by Michael Porter, Harvard Business School | https://s3.amazonaws.com/he-assets-prod/interactives/057_porters_forces_framework/Launch.html |
| | WALMART |
Rnieves0411
Walmart-RossanaNieves.xlsx
