Corporate Strategy Alternatives
Domestic Market
Integration Strategy
Through integration, the company can further achieve economies of scale. Even though products are relatively homogeneous and bargaining power of suppliers is weak, producing own supplies provides and advantage of launching new products that are produced and carried by a big and successful company named, Wal-Mart. With the management skills in convincing customers to believe in the quality of the products, and the opportunity of even lowering prices, a click on a particular product could result to a new brand name that consumers would prefer against other branded suppliers.
A disadvantage of the strategy is the loss of brand names carried that are well known in other countries through other carriers. The strategy might not be relevant because the company can land good deals because of its name and size. The supplier bargaining power is an irrelevant factor to consider unless the company has the skills to overcome these suppliers and launch a new brand-name product. The strategy is also unethical for the industry and its players. Making it unfair to the suppliers.
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