SWOT Analysis of Walmart
SWOT of leading retail store – Walmart which focuses mainly on its pricing. Always low prices being its motto. Read on to know more.
Strengths
- 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.
- 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.
- Wal-Mart has grown substantially over recent years, and has experienced global expansion (for example its purchase of the United Kingdom based retailer ASDA).It has also created a joint venture with bharti in India.
Weakness
- 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.
- Like Wal-Mart is facing competition in North America with stores such as Kmart and target. Several smaller retailers, primarily dollar stores, such as Family Dollar and Dollar General, have been able to find a small niche market and compete successfully against Wal-Mart for home consumer sales.
- 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.
Opportunities
- To take over, merge with, or form strategic alliances with other global retailers, focusing on specific markets. Example – bharti-walmart in India.
- 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.
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.
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About Hitesh Bhasin
