Walmart: Porter's Five Forces Framework

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Walmart’s Porter Five Forces Framework
In general, Porter’s Five Forces framework measures the industry’s profitability by evaluating five sources of a firm’s competitive pressure. The level of rivalry within the industry is high as Walmart is currently facing cut-throat competition from many grocery retail chains and supermarkets, including Dollar General Corporation, Kohl’s Corporation, Costco Wholesale Corporation, and others (Dudovskiy n.p.). Competitors are numerous, and there is also excess production capacity (Radeef 6). The potential for new entrants is high (Radeef 6). New rivals could emerge within m-commerce and e-commerce, particularly during the Covid-19 era. For example, online grocery shopping is increasingly catching up with consumers, and it is expected to grow in the future. The power of large suppliers is low due to high substitutes availability and low switching costs from one supplier to another. In addition, the company is highly price-sensitive, has much information concerning the prod...