Porter's Five Forces Analysis for Retail Industry (e.g. Walmart Inc.)

Example of the week

Company profile: Walmart Inc. (WMT) is a retailer competing with Target Corporation (TGT), Costco Wholesale Corporation (COST), Amazon.com Inc. (AMZN) and Home Depot, Inc. (HD), among others.

Rivalry: The retail industry is extremely competitive, with a variety of companies vying fiercely for market share (strong force).

New entrants: The retail industry has high barriers to entry, including startup capital requirements and economies of scale of existing competitors (weak force).

Substitution: The retail industry has limited substitutes (weak force).

Supplier power: The retail industry has numerous competing suppliers (weak force).

Buyer power: The retail industry serves many diverse customers who make small purchases (weak force).