Walmart and Landolake

1. Analyze LoL’s situation by using Porter’s five forces framework.   Identify the forces that seem to be relevant for LoL based on the above story.

When the current standing of Land O’Lakes Inc. is analyzed according to Porter’s Five Forces Model we can see that 3 forces are mentioned in the paragraph; buyer power, rivalry among existing firms and threat of substitute products are the main forces that has effect on the of Land O’Lakes Inc.’s position in the industry. In this case Walmart is the buyer, as it is a retailing company that purchases Land O’Lakes Inc.’s products to distribute and sell them to the customers. As a buyer, Walmart has a very strong bargaining power as it is a huge retailing company that reaches many customers. Dean Foods and Kraft Foods are the existing firms that are occupying the shelf space, since there is competition between Land O’Lakes Inc. and these two companies they represent the rivalry in the five forces model. Finally, it is mentioned in the paragraph that Walmart is introduced the store-brand which can be a substitute for the Land O’Lakes Inc., according to Porter’s five forces model generic brands can be an alternative to name brands (in this case Land O’Lakes) .

1. Describe if IT can help solve LoL’s problems listed above. If yes, briefly explain how.

Some of the problems can be solved and supported with IT. For example, to meet Walmart’s demand for cross-docking Land O’Lakes Inc. needs a computerized system for tracking the information flow and to ensure timely logistics. Cross-docking can be very complicated as it is a real-time process, thus Land O’Lakes Inc. should implement a system that treats, analyses and answers data and demands as they come. Thus production, shipment and buyers (Walmart) must be tied neatly to one another through an inter-organizational information system. The company also can use IT to manage their suppliers and reduce costs. This might come in handy later to reduce prices efficiently to compete with rivals and substitutes. If Land O’Lakes Inc. creates integrated supply chain and support this with IT the raised efficiency can help them reduce costs and compete better in slow economy. The IT update might be necessary to match Dean Foods and Kraft Foods’s systems and thus to remain competitive in the food industry. The above ways of implementing and integrating IT into business might also help company to fight generic brands and increase sales.

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