Research Paper on:
Wal-Mart Competitive Analysis

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close down one of its global stores. This corporation appears to follow functional organizational structure model. While little is written about internal policies and procedures (that can be verified), their  Web site identifies divisions and departments and executives in charge of those, which suggests a functional model. Porters Five Forces Analysis It is not an easy feat to  become, and remain, the worlds largest company in an industry that is as highly competitive as retail. Porter offers an analysis tool he called the Five Forces to gain insight  about any companys profitability and competitive standing in the market. The five forces are: the intensity of rivalry among competitors; the threat of new entries into that market; the availability  of substitute products; the bargaining power of buyers, which refer to the consumer base; and the bargaining power of suppliers (Porter, 1980). Wal-Mart is larger than its three greatest  competitors, Carrefour, Royal Ahold, and Metro AG put together (Biesada 2006). Wal-Mart has 6,300 stores, which includes 1,200 discount stores, 2,000 SuperWal-Marts (these stock groceries), and 565 Sams Clubs (warehouse  stores) (Biesada 2006). Two-thirds of the stores are in the United States (Biesada 2006). Wal-Mart a majority stake in Seiyu Co., Ltd., a Japanese company (Biesada 2006). It is also  the largest retailer in both Canada and Mexico (Biesada 2006). Domestically, Wal-Marts direct competitors are K-Mart and Target. K-Mart, of course, acquired Sears through a merger a few years ago.  The reasons Wal-Mart pulls ahead in the market is because it is a highly efficient organization, which allows the company to have greater control over their fixed costs and  its product differentiation efforts are more effective. Its leadership position is based on low cost. All three of the stores have celebrity names attached to some of their products but