swot & porter walmart engii
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UNIVERSITYOFELSALVADORSCIENCESECONOMICSSCHOOL
MARKETING
SCHOOL
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CYCLEII 2013SUBJECT:INGLESII
GROUP:4CONTENT: SWOT ANALYSIS& PORTERANALYSISOFTHE5 FORCES
TEACHERSNAME:RUTHMILADISBARRIOS
STUDENTS NAMES:
ANAGABRIELACARDONARIVAS CR13004
INGRIDVANESSAHERRERAPAZ HP13029
JENNIFERBEATRIZSANTOSCHICAS SC13003
HENRYBRYAMPINEDAMARTNEZ PM12014
NELSONJOSRODASESCOBAR RE09021
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HISTORY 3
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ORGANIZATIONALCULTURE 5
Philosophy
Mission
Vision
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Philosophy:
Walmart is a company dedicated to the commercial sector. They have
the opportunity to make a difference in every community in which they
are present.
Mission:
Walmart has as established mission, search and continuously improve
the ways of working of the company for the purpose of provide a better
quality of life for stakeholders (customers, employees and suppliers).
Vision:
Contribute to improving life quality for families in Central America.
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SW TANALYSIS
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STRENGTHSOFTHECOMPANY 8
It is constantly updated
It is original in its marketing.
It is recognized internationally.
Effective use of logistics techniques.
Easy location of the stores.
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STRENGTHSOFTHECOMPANY 9
The company has a rule in which any employee who is within10 feet away of a customer needs to say hello and ask wherehe can help.
Wide variety of merchandise offered to its customers
Another positive point is selling the consumer brands of goodquality.
The diversity of the merchandise for sale is wide as they sellfrom a pin to refrigerators.
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OPPORTUNITIESOFTHECOMPANY10
Walmart
As the largest chain of its kind, held
constant for so long, it makes sense thatWalmart has many areas of opportunity.
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OPPORTUNITIESOFTHECOMPANY11
Open newstores in theSalvadoran
territory
Reach a greaternumber of
followers andwould focus to a
younger audience,
creating a newsector of peopleloyal to the brand.
Use morepublicity
Ability toexpand to
more countries
High barriersof entry to
their
competitors
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WEAKNESSESOFTHECOMPANY 12
The "full time"employee onlywork 28 hours
and not 40which meansthey earn lessthan $ 11,000
a year.
Has very fewbranches
Wasrepeatedly
fined Wal-Martfor
discriminationagainst
disabled
High costs ofpersonnel
selection andtraining
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COMPANYTHREATS 13
Crime around
theirbranches
SuperSelectos as its
strongestcompetitor
Weatherconditions
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Forces
BARGAININGPOWER OF
THE BUYERSOR
CUSTOMERS
BARGAININGPOWER OF
THESUPPLIERS OR
VENDORS
THREAT OFNEW
ENTRANTS
THREAT OFSUBSTITUTE
PRODUCTS ORSERVICES
INTENSITY OFCOMPETITIVE
RIVALRY
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1BARGAININGPOWEROFTHE
BUYERSORCUSTOMERS 16
When buyers are few, are more organized and are more informed, the
better your requirements in terms of lower prices, better quality andservices.
Not the same can be sold through various distribution channels to have
few channels. For example, in the field of large stores, they can exertgreater bargaining power than smaller retailers.
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The same applies when the product is sold through distribution channels.
If there are few channels there is a greater reliance on distributionchannels and they have more bargaining power.
Bargaining power is also given to the volume of purchase. If a buyer is
notable for its high volume may negotiate with more power. This can gofurther if there are few buyers and these are connected for example with
respect to the price at which they purchase. Or even more, if you agree on
the price at which they are willing to buy.
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If several suppliers and the customer is easy to change supplier, although
its size is small has more bargaining power , since it can easily beconvinced to go to an alternative .
The information is also key to the buyer . Today internet enabled
transparency unimaginable before . Buyers can check many options withease before making a purchase. They can get pricing and reviews, find
advantages and disadvantages of a Gorman never seen before. This gives to
buyers, even the smaller bargaining power comparison or at least very
high .
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2BARGAININGPOWEROFTHE
SUPPLIERSORVENDORS
Retail companies like Walmart made endless efforts to
diminish the bargaining power of suppliers, and itdepends on their business model, "buy and sell cheap".
Sensitivity of the prices and significance of volume. Thebargaining power they have the suppliers with Walmart
is very low.
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Barriers to entry, Capital needs, distribution channels.
The importance of economies of scale to compete and
the use of technologies for the generation of the same.
The relevance of Walmart in customers. Has a historythat makes it superior to any other pop-up mark. The
usual plays an important role since it creates a link
with the company.
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234T
HREATOFSUBSTITUTEPRODUCTSORSERVICES
Considering the improvement of distribution of its
products and the implementation of advancedtechnologies (conveyors, bar codes, radio frequencyidentification system) allowed to get low prices onmost of its products which downplayed the threat ofsubstitutes, but always must be at the forefront of their
closest competitors fail to enter substitute productsthat affect their market positioning.
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NTENSITYOFCOMPETITIVERIVALRY
More than a force, rivalry among competitors becomesthe result of the previous four. The rivalry among
competitors define the profitability of an industry: the
less competitive is a sector, it is usually more profitableand vice versa.
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