Super Selectos: Winning The War Against Multinationals?

Super Selectos Name Institution Due Date Super Selectos Table of Contents TOC \o "1-3" \h \z \u Executive Summary PAGEREF _Toc11389674 \h 2Case Profile and Case Analysis Purpose PAGEREF _Toc11389675 \h 3External Environment Analysis PAGEREF _Toc11389676 \h 3Economic PAGEREF _Toc11389677 \h 4Political and Legal PAGEREF _Toc11389678 \h 7Socio-Cultural PAGEREF _Toc11389679 \h 8Industry Analysis PAGEREF _Toc11389680 \h 9Competition in the Industry PAGEREF _Toc11389681 \h 10The threat of New Entrants PAGEREF _Toc11389682 \h 11Power of Suppliers PAGEREF _Toc11389683 \h 11Power of Consumers PAGEREF _Toc11389684 \h 12Substitute Products PAGEREF _Toc11389685 \h 12Competitor Analysis PAGEREF _Toc11389686 \h 13Internal environmental analysis PAGEREF _Toc11389687 \h 13Employees PAGEREF _Toc11389688 \h 13Organizational organization PAGEREF _Toc11389689 \h 14Organizational culture PAGEREF _Toc11389690 \h 14IT infrastructure PAGEREF _Toc11389691 \h 14Problems identification PAGEREF _Toc11389692 \h 16Highly volatile supply chain PAGEREF _Toc11389693 \h 16Poverty PAGEREF _Toc11389694 \h 16Stiff Competition PAGEREF _Toc11389695 \h 17Unfavorable government policies PAGEREF _Toc11389696 \h 17Strategy formulation PAGEREF _Toc11389697 \h 18Strategic alternatives PAGEREF _Toc11389698 \h 18Expand to rural areas PAGEREF _Toc11389699 \h 18Invest in artificial intelligence PAGEREF _Toc11389700 \h 18Negotiate with suppliers PAGEREF _Toc11389701 \h 19Alternative evaluation PAGEREF _Toc11389702 \h 20Alternative selection PAGEREF _Toc11389703 \h 21Strategic alternative implementation and action plan PAGEREF _Toc11389704 \h 21Conclusions PAGEREF _Toc11389705 \h 22References PAGEREF _Toc11389706 \h 23 Executive Summary For Super Selectos, news of Walmart entering the Salvadoran retail market meant that it had to find ways to not only remain a worthy competitor but also maintain or increase its profitability. Walmart is by far the largest retailer in the world. However, its entry into the Salvadoran retail market offered Super Selectos the opportunity to enhance its operations and to innovate some more. Super Selectos continues to enjoy the largest retail market share, and this is because of the expansion strategies the firm adopted which saw its stores continue to increase in number and spread to all the departments of the country. Different factors affect the operations of Super Selectos. One of them is the slow economic growth of the Salvadoran economy, whose growth has not exceeded 3 percent in the last five years. The political climate, coupled with the fact that the country’s government glorifies corruption, continues to affect the operations of businesses in the country greatly. Poverty is also a major problem in the country. As per statistics from 2015, the average household income for the people of El Salvador is US$ 538.70. However, the monthly cost of living is estimated to be US$ 590. The disparity in the numbers above shows that it can be problematic for a supermarket chain like Super Selectos to achieve its desired financial targets. Even though Super Selectos is the leading supermarket chain, there is still room for improvement. Different strategies can be employed to help propel Super Selectos’ position. Some of the strategies include expansio...