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Online Retail Industry Analysis

I need help answering the following assignment. See attached article.

1. Discuss the structural characteristics of the online retail industry, from the point of view of the Five Competitive Forces (Porter) framework.
2. Discuss the Wal-Mart online strategy, from the perspective of the Resource Based View of the Firm framework.
3. Discuss the Wal-Mart online strategy, from the perspective of the Competitive Advantage (Porter) framework.


Solution Preview

Let's take a look at the issues involved here to get you started in the right direction.

1. This article really shows the inadequacy of Walmart from a technological standpoint, and the article is also very factual. The company's website ranks very low in comparison to their competitors. From a structural standpoint, the suppliers don't have the upper hand in this case due to the nature of the industry (perfect competition). Walmart's selling products that are sold virtually the same everywhere, including Target, k-Mart, etc. etc. Because their products aren't unique, their suppliers won't be unique. Due to the size of Walmart, they do have buyer power. If the supplier wants to remain with Walmart, they have to meet Walmart's price conditions.

Competitive rivalry is also an advantage with Walmart. While their online sales ...

Solution Summary

This solution provides a thorough discussion on the Walmart article attached, using the Five Competitive Forces (Porter) framework, the Resource Based View of the Firm framework, and the Competitive Advantage (Porter) framework.