Question

Explain porters five forces for the new furniture product Wal-Mart is going to have on its store . Explain all five points of porter forces remembering the fact for furniture product .

Answer 1

Five forces analysis for walmart regarding new furniture product are as follows

Industry rivalry

This is most important and prominent factors that what has to focus in respective operating environment as the furniture industry is mainly dominated by IKEA and many other brands. This is specific type of structure directly create a huge complication in operation for Walmart in its respective environment of operation as well as decreases its market share by a huge mass in. This kind of Limited implementation as well as availability of HP in rivalry in the symbol industry create a threat for its business opportunities regarding implementation of a new product in its business structure.

Bargaining power of buyers

This is one of the most prominent factors that would affect the price of the product. As there are numerous options available in the market, buying power of the bhaiya is extensively big as well as the level of wiring power of the buyer is also extensively big as availability of several options directly create an advantage to the buyer for increasing the adaptability in the respective environment as well as to increase the chances of getting better outcome and power of bargaining.

Bargaining power of suppliers

This is also a major prominent force in the respective environment as the suppliers also have extensive availability of power due to Greater reach to the customer. As it is a new product, walmart would be affected by such a specific type of implementation in the respective environment and this differentiation in the implementation of the specific product in pre existing existing product range good created difference in its market opportunities in the respective environment of operation.

Threat of new entrants

This is specific factor is also prominently bit for the organisation as this specific industry is very prone to the entry of new competitors. Introducing a new products such as a furniture range would require proper analysis of the market before implementation of product. As market is highly fragile availability of opportunities for the specific brand is relatively less and the level of competition is extensively big at the respective environment of operations.

Threat of substitutes

Due to extensive availability of competition and already a very mature market of the furniture, there is definitely and excessive availability of substitute in the respective operating environment. Due to this availability of substitute, overall effectiveness of the specific organisation is directly reduced enough operating environment and set of substitution is also extremely high.