By Abhijeet Pratap Filed Under: Walmart, an American retail brand was incorporated in in Delaware.
A SWOT analysis looks at the strength, the weaknesses, opportunities and threats facing a company. This is done by examining internal as well as external factors that affect the operations of a company. The paper begins with a company background of the Wal-Mart stores from its early days to current times where it is regarded as the largest retail store in the world.
The paper then looks at the strong points of the Wal-Mart Stores. The paper looks at how the company is able to use these strengths to gain competitive advantage in an increasingly competitive environment.
It also looks at the weaknesses faced by the company and this is mainly in terms of span of control. Due to its large enormous scale of operations, the company is not able to effectively monitor all its activities. The paper then looks at the opportunities available for Wal-Mart.
There are tremendous opportunities available for Wal-Mart in the global market through joint ventures and opening new stores in countries where they have not ventured.
In spite of its enormous size, Wal-Mart also faces competition in new markets that it ventures in and this poses a threat to its operations.
The paper then looks at the environmental challenges that the company faces which threatens to spoil its international image. The paper ends with recommendations as to how the company can improve its efficiencies and thereby gain a competitive edge against other companies.
The business has experienced tremendous growth ever since achieving an annual turnover of one billion dollars seventeen years later. This huge growth has enabled the store to penetrate the global market.
The global operation of Wal-Mart was marked by the establishment of its first international store in at Mexico City.
Through its global penetration, an estimated of one hundred million customers are said to visit a Wal-Mart store found somewhere in the world.
The stores employs a total of 1. Due to its huge scale of operations, the business is divided into three main segments: In addition to this huge local operation, Wal-Mart and its international segment conducts retail operation within eight countries and Puerto Rico.
Strengths Wal-Mart is a powerful retail brand that represents value and quality. It is offers value for money and convenience by offering a wide range of products.
Through its associates the company has developed the one stop shopping policy emulated by other retail stores world wide.
Wal-Mart substantial growth has resulted in global expansion. This enhances its brand name by giving it international recognition. The company employs an elaborate system of information technology that supports its local as well as global operations.
Through this system it is possible to monitor the performance of its stores country-wide, on a real time basis. Wal-Mart also uses the most modern technologies available to handle and manage it local and international logistic operations.
By integrating technology into its core operations, Wal-Mart is able to overcome strong competition as well as serve its large market effectively. Wal-Mart is considered one of the largest retailers in the world as it not only manages a huge number of product lines but also serves a considerable consumer population both locally and internationally.
These results in a huge span of control and despite its IT advantages and tools that can handle and address its internal needs, it is not possible to monitor all of its operations. Wal-Mart has diversified its products across many sectors such as clothing, food, or furniture. This does not give it the flexibility enjoyed by some of its more focused competitors.
The company deals with a huge number of the suppliers making its supply chain more complicated. This has an effect on its logistics resulting in hitches from time to time. Though the company is already operating globally, it has not exploited this opportunity fully as the number of its international branches are only limited to a few selected countries.
With its vast resources, Wal-Mart has the opportunity to take over, merge with, or form strategic alliances with other global retailers.
The Wal-Mart stores are currently in a relatively small number of countries. There are therefore huge opportunities for future business in expanding consumer markets in emerging economic power houses including developing countries. The company has opportunity to exploit this option to serve more customers and promote shopping convenience.
E-Commerce helps to enhance convenience for customers whose residence is too far from local Wal-Mart branches. Threats Despite its huge scale of operations and customer loyalty, Wal-Mart is also target of competition, locally and globally. This puts intense pressure on the company particularly in terms of maintaining its consumers as well as developing new and better business strategies.
Wal-Mart is a global retailer that needs to adapt to foreign regulations and standards so as to penetrate in the global market. The company is vulnerable to the issues that would affect the country it operates in, particularly political and economic issues.
They may also result to malpractices under government protection to fight of competition.Walmart's Strategic Plan Analysis; Walmart's Strategic Plan Analysis. Words Jan 28th, 8 Pages.
From there it has grown to become the largest retail giant in the world. Ranked by Forbes list for as the 18th largest public corporation in the world, Wal-Mart is the highest revenue generating public entity in the world as of. CURRENT SITUAION OF WALMART. Founded in by Sam Walton, Wal-Mart followed an amazing pattern of success and growth, eclipsing all other U.S.
department store retailers by the early s. Walmart's Strategic Plan Analysis; Walmart's Strategic Plan Analysis. Words Jan 28th, 8 Pages. From there it has grown to become the largest retail giant in the world. Ranked by Forbes list for as the 18th largest public corporation in the world, Wal-Mart is the highest revenue generating public entity in the world as of.
Free 2-day shipping. Buy Strategic Analysis at timberdesignmag.com Strategic Analysis of Walmart This Case Study Strategic Analysis of Walmart and other 64,+ term papers, college essay examples and free essays are available now on timberdesignmag.com Autor: review • March 12, • Case Study • 2, Words (9 Pages) • 1, Views4/4(1).
Internal Strategic Analysis The internal analysis of Wal-Mart has been carried out using strength and weakness analysis. Strength and Weakness Analysis Table 3 of appendix shows the analysis Strengths and Weakness Conclusion STRENGTHS Large Scale of operations – Wal-Mart is one of the biggest retailers worldwide.