• a lot of business to manufacturers

• Potential Competitors: Medium pressureo Grocers could potentially enter into the retail side.o Entry barriers are relatively high, as Wal-Mart has an outstanding distribution systems, locations, brand name, and financial capital to fend off competitors.o Wal-mart often has an absolute cost advantage over other competitors.• Rivalry Among Established Companies:Medium Pressureo Currently, there are three main incumbent companies that exist in the same market as Wal-Mart: Sears, K Mart, and Target.Target is the strongest of the three in relation to retail.

o Target has experienced tremendous growth in their domestic markets and have defined their niche quite effectively.o Sears and K-Mart seem to be drifting and have not challenged K-Mart in sometime.o Mature industry life cycle.• The Bargaining Power of Buyers: Low pressureo The individual buyer has little to no pressure on Wal-Mart.o Consumer advocate groups have complained about Wal-Mart’s pricing techniques.o Consumer could shop at a competitor who offers comparable products at comparable prices, but the convenience is lost.• Bargaining Power of Suppliers: Low to Medium pressureo Since Wal-Mart holds so much of the market share, they offer a lot of business to manufacturers and wholesalers.

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This gives Wal-Mart a lot of power because by Wal-Mart threatening to switch to a different supplier would create a scare tactic to the suppliers. o Wal-Mart could vertically integrate.

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