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7SWOT Analysis of Wal-Mart
Strengths
Weaknesses
Wal-Mart is a powerful retail brand. It has a reputation for value for
Wal-Mart is the World's largest grocery retailer and control of its
money, convenience and a wide range of products all in one store.
empire, despite its IT advantages, could leave it weak in some areas
due to the huge span of control.
Wal-Mart has grown substantially over recent years, and has
experienced global expansion (for example its purchase of the United
Since Wal-Mart sell products across many sectors (such as clothing,
Kingdom based retailer ASDA).
food, or stationary), it may not have the flexibility of some of its more
focused competitors.
The company has a core competence involving its use of information
technology to support its international logistics system. For example,
The company is global, but has has a presence in relatively few
it can see how individual products are performing country-wide,
countries Worldwide.
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.
Opportunities
Threats
To take over, merge with, or form strategic alliances with other global
Being number one means that you are the target of competition,
retailers, focusing on specific markets such as Europe or the Greater
locally and globally.
China Region.
Being a global retailer means that you are exposed to political
The stores are currently only trade in a relatively small number of
problems in the countries that you operate in.
countries. Therefore there are tremendous opportunities for future
The cost of producing many consumer products tends to have fallen
business in expanding consumer markets, such as China and India.
because of lower manufacturing costs. Manufacturing cost have fallen
New locations and store types offer Wal-Mart opportunities to exploit
due to outsourcing to low-cost regions of the World. This has lead to
market development. They diversified from large super centres, to
price competition, resulting in price deflation in some ranges. Intense
local and mall-based sites.
price competition is a threat.
Opportunities exist for Wal-Mart to continue with its current strategy
of large, super centres.
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Parent category: Business