The paper "International Marketing of Walmart" is an excellent example of a case study on marketing. The following paper analyses the position of Wal-Mart in Australia’ s retail industry. The report finds that Australia has developed one of the most profitable retail markets in the world. Currently, a large number of innovative global retailers have established their presence in the Australia market and are competing effectively with domestic retailers. A notable foreign retailer is Wal-Mart which is well-positioned to dominate the Australian retail market. The company has a mature branch network and has established strategic partnerships with distributors and suppliers.
In addition, Wal-Mart has developed the capacity to sell its products online. Nevertheless, because of the intense competition in the market, it is imperative that the company develops new strategies for overcoming competitors. Some of these strategies include acquiring small retailers. Industry Analysis of Wal-Mart Australia Introduction and Overview of Australia’ s Retail Industry For a long time, the retail industry has been the primary linkage between wholesalers (manufacturers) and consumers in Australia. The industry provides functions such as market discovery for products and a convenient point for consumers.
Some of these services have moved to the online platform with the introduction of online shopping and other technologies for online purchasing of products and services. Generally, the development of Australia’ s retail industry has been driven by several factors including changing customer preferences, technological changes, globalization, and competitive pressures. These factors have made the industry to be more proactive unlike in the past when it was isolated due to market protection and unfavorable geographical position (ACSI, 2003). Porter’ s Five Forces Analysis of Wal-Mart’ s Position in the Australian Retail Industry Rivalry Among Different Brands Currently, there are three large companies that compete for the same market resources as Wal-Mart.
These are Kmart, Sears, and Target. In relation to a retail establishment, the target is the strongest of the three rivals. All three companies have attained considerable growth in the Australian retail market and have defined their respective market niches successfully. Although the market exhibits a mature industry life cycle, Kmart and Sears seem to be drifting and have not been able to challenge Wal-Mart for some time. The Bargaining Power of Buyers Australia’ s retail market is a low-pressure zone as regards the bargaining power of buyers.
Individual buyers have little or no pressure at all on Wal-Mart. In recent years, consumer advocacy groups have complained about Wal-Mart’ s pricing strategies which oscillate along the pricing continuum. For these reasons, consumers can easily switch to competitors who offer substitute products at cheaper prices (Nina, 2008).