UNIVERSITY OF EL SALVADOR

SCIENCES ECONOMICS SCHOOL

MARKETING SCHOOL
1
CYCLE II 2013
SUBJECT: INGLES II
GROUP: 4
CONTENT: SWOT ANALYSIS & PORTER ANALYSIS OF THE 5 FORCES
TEACHERS NAME: RUTH MILADIS BARRIOS
STUDENTS NAMES:

ANA GABRIELA CARDONA RIVAS CR13004
INGRID VANESSA HERRERA PAZ HP13029
JENNIFER BEATRIZ SANTOS CHICAS SC13003
HENRY BRYAM PINEDA MARTNEZ PM12014
NELSON JOS RODAS ESCOBAR RE09021

2
HISTORY 3
HISTORY
Walmart entered the region in 2005 and became Walmart
Centroamerica in 2006. In 2009, Walmart Mexico acquired
Walmart's operations in Central America from Wal-Mart
Stores, Inc. and two minority partners. In 2010, Walmart
Mexico became Walmart de Mexico y Centroamerica.
Walmart is the largest retailer in Central America with stores
in: Costa Rica, Guatemala, El Salvador, Honduras and
Nicaragua. Our headquarters are in San Jos, Costa Rica.
4
ORGANIZATIONALCULTURE 5
Philosophy
Mission
Vision
6
Philosophy:
Walmart is a company dedicated to the commercial sector. They have
the opportunity to make a difference in every community in which they
are present.

Mission:
Walmart has as established mission, search and continuously improve
the ways of working of the company for the purpose of provide a better
quality of life for stakeholders (customers, employees and suppliers).

Vision:
Contribute to improving life quality for families in Central America.
ANALYSIS
7
STRENGTHS OFTHE COMPANY 8
It is constantly updated
It is original in its marketing.
It is recognized internationally.
Effective use of logistics techniques.
Easy location of the stores.
STRENGTHS OFTHE COMPANY 9
The company has a rule in which any employee who is within
10 feet away of a customer needs to say hello and ask where
he can help.
Wide variety of merchandise offered to its customers
Another positive point is selling the consumer brands of good
quality.
The diversity of the merchandise for sale is wide as they sell
from a pin to refrigerators.
OPPORTUNITIES OFTHE COMPANY 10
Walmart

As the largest chain of its kind, held
constant for so long, it makes sense that
Walmart has many areas of opportunity.
OPPORTUNITIES OFTHE COMPANY 11
Open new
stores in the
Salvadoran
territory
Reach a greater
number of
followers and
would focus to a
younger audience,
creating a new
sector of people
loyal to the brand.
Use more
publicity
Ability to
expand to
more countries
High barriers
of entry to
their
competitors
WEAKNESSES OFTHE COMPANY 12
The "full time"
employee only
work 28 hours
and not 40
which means
they earn less
than $ 11,000
a year.
Has very few
branches
Was
repeatedly
fined Wal-Mart
for
discrimination
against
disabled
High costs of
personnel
selection and
training
COMPANYTHREATS 13
Crime around
their
branches
Super
Selectos as its
strongest
competitor
Weather
conditions
ANALYSIS
OFTHE5FORCES
14
15
Forces
BARGAINING
POWER OF
THE BUYERS
OR
CUSTOMERS
BARGAINING
POWER OF
THE
SUPPLIERS OR
VENDORS
THREAT OF
NEW
ENTRANTS
THREAT OF
SUBSTITUTE
PRODUCTS OR
SERVICES
INTENSITY OF
COMPETITIVE
RIVALRY
1
BARGAINING POWER OF THE
BUYERS OR CUSTOMERS 16
When buyers are few, are more organized and are more informed, the
better your requirements in terms of lower prices, better quality and
services.

Not the same can be sold through various distribution channels to have
few channels. For example, in the field of large stores, they can exert
greater bargaining power than smaller retailers.
17
The same applies when the product is sold through distribution channels.
If there are few channels there is a greater reliance on distribution
channels and they have more bargaining power.

Bargaining power is also given to the volume of purchase. If a buyer is
notable for its high volume may negotiate with more power. This can go
further if there are few buyers and these are connected for example with
respect to the price at which they purchase. Or even more, if you agree on
the price at which they are willing to buy.
18
If several suppliers and the customer is easy to change supplier, although
its size is small has more bargaining power , since it can easily be
convinced to go to an alternative .

The information is also key to the buyer . Today internet enabled
transparency unimaginable before . Buyers can check many options with
ease before making a purchase. They can get pricing and reviews, find
advantages and disadvantages of a Gorman never seen before. This gives to
buyers, even the smaller bargaining power comparison or at least very
high .
2
BARGAINING POWER OF THE
SUPPLIERS OR VENDORS
Retail companies like Walmart made endless efforts to
diminish the bargaining power of suppliers, and it
depends on their business model, "buy and sell cheap".

Sensitivity of the prices and significance of volume. The
bargaining power they have the suppliers with Walmart
is very low.
19
Supplier Cost Change. This cost is not beneficial since
the inputs are obtained from numerous suppliers, both
local and international, which complicates the decision
to choose to change any of them, because they know the
system and work for Walmart them has developed
quality programs and providing food security and
responsible.
20
21
3
THREAT OF NEW ENTRANTS
Without a doubt, the main limitation of access of the
competitors of Walmart, were barriers based on prices,
geographical position, format and dimension of the
shops, variety of goods, environment and purchase the
image in front of their customers.
22
Barriers to entry, Capital needs, distribution channels.
The importance of economies of scale to compete and
the use of technologies for the generation of the same.
The relevance of Walmart in customers. Has a history
that makes it superior to any other pop-up mark. The
usual plays an important role since it creates a link
with the company.
23
4
THREAT OF SUBSTITUTE
PRODUCTS OR SERVICES
Considering the improvement of distribution of its
products and the implementation of advanced
technologies (conveyors, bar codes, radio frequency
identification system) allowed to get low prices on
most of its products which downplayed the threat of
substitutes, but always must be at the forefront of their
closest competitors fail to enter substitute products
that affect their market positioning.

24
5
INTENSITY OF COMPETITIVE
RIVALRY
More than a force, rivalry among competitors becomes
the result of the previous four. The rivalry among
competitors define the profitability of an industry: the
less competitive is a sector, it is usually more profitable
and vice versa.
Obviously as we have viewed has been fierce competition in
the supermarket industry, which effectively is dominated
by Wal-Mart, which has almost total control of the market,
although this have 2 major competitors are Grupo Calleja
with Super Selectos and PriceSmart their competition has
been fierce, but Wal-Mart has won primarily on product
diversification.
Wal-Mart
26