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Discount, Variety Stores

This analysis examines the business environment surrounding Walmart, focusing on the factors influencing its competitive advantages. Key elements include the bargaining power of buyers and suppliers, threats of substitution from local chains and online retailers, and barriers to entry in the industry. With an increasing number of substitutes, Walmart must differentiate by offering a unique and extensive selection at lower prices. While there are barriers such as supplier relationships and economies of scale, the threat of new entrants remains low to medium in this retail sector.

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Discount, Variety Stores

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  1. Discount, Variety Stores the Business Environment and the Business Claire (Lan) Lin

  2. Business Environment

  3. Bargaining Power of Buyers

  4. Bargaining Power of Suppliers

  5. Threats of Substitution and Entry • Threat of Substitution • Increasing number of substitutes: local chains, internet-based retailers, and catalog businesses • Need to differentiate trough obtaining a unique/large selection and offering lower price • Threat of entry • Barriers exist to enter the industry such as access to distribution channels, customer base, and supplier relationship • Economies of scale are needed to compete on price • Threat of entry is low to medium

  6. Business AnalysisWalmart (WMT)

  7. Competitive Advantages

  8. Strengths

  9. Weaknesses

  10. Opportunities

  11. Threats

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