SWOT Analysis of Wal-Mart-Case Study
Wal-Mart is a powerful retail brand. It has a reputation for value for money, convenience and a wide range of products all in one store.
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Wal-Mart SWOT Analysis-The Strengths
• Wal-Mart is a powerful retail brand. It has a reputation for value for money,
convenience and a wide range of products all in one store.
• Wal-Mart has grown substantially over recent years, and has experienced global
expansion (for example its purchase of the United Kingdom based retailer ASDA).
• The company has a core competence involving its use of information technology to
support its international logistics system. For example, it can see how individual
products are performing country-wide, store-by-store at a glance. IT also supports
Wal-Mart’s efficient procurement.
• A focused strategy is in place for human resource management and development.
People are key to Wal-Mart’s business and it invests time and money in training
people, and retaining a developing them.
SWOT Analysis of Wal-Mart-The Weaknesses
• Wal-Mart is the World’s largest grocery retailer and control of its empire, despite its
IT advantages, could leave it weak in some areas due to the huge span of control.
• Since Wal-Mart sell products across many sectors (such as clothing, food, or
stationary), it may not have the flexibility of some of its more focused competitors.
• The company is global, but has has a presence in relatively few countries Worldwide.
SWOT Analysis of Wal-Mart-Opportunities
• To take over, merge with, or form strategic alliances with other global retailers,
focusing on specific markets such as Europe or the Greater China Region.
• The stores are currently only trade in a relatively small number of countries.
Therefore there are tremendous opportunities for future business in expanding
consumer markets, such as China and India.
• New locations and store types offer Wal-Mart opportunities to exploit market
development. They diversified from large super centers, to local and mall-based sites.
• Opportunities exist for Wal-Mart to continue with its current strategy of large, super
centers.
SWOT Analysis of Wal-Mart-The Threats
• Being number one means that you are the target of competition, locally and globally.
• Being a global retailer means that you are exposed to political problems in the
countries that you operate in.
• The cost of producing many consumer products tends to have fallen because of lower
manufacturing costs. Manufacturing cost has fallen due to outsourcing to low-cost
regions of the World. This has lead to price competition, resulting in price deflation in
some ranges. Intense price competition is a threat.
‘Wal-Mart Stores, Inc. is the world’s largest retailer, with $256.3 billion in sales in the fiscal
year ending Jan. 31, 2004. The company employs 1.6 million associates worldwide through more than 3,600 facilities in the United States and more than 1,570 units . . .
About Wal-Mart
Wal-Mart is the largest grocery retailer in the United States, with an estimated 20% of the retail grocery and consumables business, as well as the largest toy seller in the U.S. It also owns and operates the North American company of Sam’s Club.
Do you need a free example of SWOT analysis to help you write your business essay? Use this example of Wal-mart to help you! Wal-Mart is the public corporation of US, this tutorials will discuss the SWOT Analysis of Wal-Mart. Wal-Mart Stores (Wal-Mart) is the largest retail company in the world with a strong market position in the US.
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