SWOT Analysis Wal-Mart Would Would you like a lesson on SWOT SWOT analysis? analysis?
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Wal-Mart Wal-Mart is a powerful retail brand. It has a reputation for value for money, mone y, onveniene and a wide ran!e of produts all in one store. Wal-Mart has !rown substantially over reent years, and has e"periened !lobal e"pansion #for e"ample its purhase of the $nited %in!dom based retailer &S'&(.
Opportunities •
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To take over, mer!e with, or form strate!i allianes with other !lobal retailers, fousin! on speifi markets suh as )urope or the *reater +hina e!ion. The stores are urrently only trade in a relatively small number of ountries. Therefore there are tremendous opportunities for future business in e"pandin! onsumer markets, suh as +hina and India. ew loations and store types offer Wal-Mart Wal-Mart opportunities opportunities to e"ploit market development. They diversified from lar!e super entres, to loal and mall-based sites. Opportunities e"ist for Wal-Mart Wal-Mart to ontinue with its urrent strate!y of lar!e, super entres.
Threats •
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ein! number one means that you are the tar!et of ompetition, loally and !lobally. ein! a !lobal retailer means that you are e"posed to politial problems in the ountries that you operate in. The ost of produin! many onsumer produts tends to have fallen beause of lower manufaturin! osts. Manufaturin! ost have fallen due to outsourin! to low-ost re!ions of the World. This has lead to prie ompetition, resultin! in prie deflation in some ran!es. Intense prie ompetition is a threat.
/Wal-Mart /Wal-Mart Stores, In. is the world0s lar!est lar!est retailer, with 1234.5 billion in sales in the fisal year endin! 6an. 57, 2889. The ompany employs 7.4 million assoiates worldwide throu!h more than 5,488 failities in the $nited States and more than 7,3:8 units. ead more;
Disclaimer: This ase study has been ompiled from information freely available from publi soures. It is merely intended to be used for eduational purposes only. •
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The ompany has a ore ompetene involvin! its use of information tehnolo!y to support its international lo!istis system.
Weaknesses •
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Wal-Mart is the World0s lar!est !roery retailer and ontrol of its empire, despite its IT advanta!es, ould leave it weak in some areas due to the hu!e span of ontrol. Sine Wal-Mart sell produts aross many setors #suh as lothin!, food, or stationary(, it may not have the fle"ibility of some of its more foused ompetitors. The ompany is !lobal, but has has a presene in relatively few ountries Worldwide.
=osted in SWOT &nalysis http://www.marketingteacher.com/walmart-swot/
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#ra$il: n nalysis o% &al-Mart's ()pansion *pportunities
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+nternational Market Share
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*rgani$ational Chart
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&al-Mart Market Share nalysis
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&al-Mart S&* nalysis
&al-Mart S&* nalysis
&n analysis of Wal-Mart0s stren!ths, weaknesses, opportunities, and threats, also known as a SWOT &nalysis, is imperative in order to understand Wal-Mart0s strate!y. >Wal-Mart Stores operated retail stores in various formats aross the world. In the $nited States, the retail formats operated by Wal-Mart inlude disount stores, superenters, nei!hborhood markets, marketside,
and Sam0s +lub. The ompany is the lar!est retailer with unpreedented sale and lout whih will enable it to maintain its market position and ontinue to !ain market share from ompetitors. owever, with over two million employees, risin! labor and healthare osts will si!nifiantly affet Wal-Mart0s profitability.@ #IIS World( Wal-Mart Stores operates numerous retail store formats in the followin! ountriesA &r!entina, raBil, +anada, +hile, +hina, +osta ia, )l Salvador, *uatemala, onduras, India, 6apan, Me"io, iara!ua, =uerto io, and the $%. >The ompany reorded revenues of 198C,279 million durin! the finanial year ended 6anuary 2878, an inrease of 8.DE over 288D. The operatin! profit of the ompany was 125,D38 million in 2878, and inrease of 3.7E over 288D. The net profit was 179,553 million in 2878, an inrease of :E over 288D.@ #IIS World( The SWOT analysis provided below will demonstrate the numerous stren!ths, weaknesses, opportunities, and threats that Wal-Mart urrently reo!niBesA Strengths
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market leader with unprecedented scale gi!es a competiti!e ad!antage:argest retailer i More than 2300 billion in re!enue, 23 billion in operating income, 4,500 stores, and nearly here is no competitor o% comparable si$e. ow cost leadership enabling &al-Mart to o7er products at low price points: he company o prices about 18 lower than the market. &al-Mart constantly 9e)es its bargaining muscle t ensures a steady, recurring stream o% customers %or its goods, making &al-Mart synonymo keeps constant pressure on competitors. +nternationali$ation strategy a strong %oundation %or growth as the ;S market matures: units in 13 countries. &al-Mart opened its =rst international store in Me)ico in 1>>1 and ha ac6uisitions and its own inno!ation. he company has nine international store %ormats. +t o banners. &al-Mart has reached 2100 billion net sales mark %or 010. +n ?@010, &al-Mart a %rom organic growth. +nternational segment re!enue AB58 o% total grew >8 on a currency-
Opportunities
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*ut-per%ormance o% the retail sectors in emerging markets: sia's retail sales are estimate the growth. China's retail sales are estimated to grow at 1<8 in 010. China's retail rose 1 trillion A2B<<.> billion in anuary and ?ebruary o% 010, according to the Fational #ureau o estimated to make up Dust 58 o% the market but is growing at B08 a year. Concentration on grocery and %ood will bene=t as eating at home, health and wellness tren economic downturn, the perception that home-prepared %oods are much healthier- a !iew h according to an industry study- and an unmet desire to enDoy a7ordable, restaurant-type %o marketers the opportunity to recapture mealtime. &ith 438 o% %ood shoppers cooking more planning to do so more o%ten. Household deli spending %or the year ending September 00 bakery, up B8G =sh meat/sea%ood, up 38G and produce, up B8. Sales o% %ro$en %oods are es
proDected to reach 2<5 billion by 01B. lso, sales o% %ood carrying a natural claim reached pril 00>, up <.<8. •
"rowth in +nternet retailing to ser!e larger market: he ;S market, by 013 is e)pected to which represents an increase o% almost E58 compared with le!els in 00>, according to ind share o% grocery in the total online sales is estimated to be 8, the higher growth market g reach out to wider audience and increase customer base. &almart.com's trac e)ceeded more than 158 o!er the pre!ious year through Site-to- Store and home deli!ery.
It is evident that Wal-Mart is a !lobal low-ost retailer, enablin! Wal-Mart to systematially redue osts due to its lar!e sale of operations. &lso, e"ternal opportunities, suh as the eonomi reession that has been e"periened world-wide !ives Wal-Mart ountless opportunities to identify new ustomers who demand low retail pries in order to ma"imiBe their bud!ets. $tiliBin! state-of-the-art tehnolo!y has allowed Wal-Mart to ma"imiBe effiieny while minimiBe osts, resultin! in low pries for their ustomers. With the use of suh tehnolo!y, Wal-Mart has been able to losely monitor !roery pries in order to redue risks assoiated with inflation and risin! food pries. This has strate!ially positioned Wal-Mart to e"pand its operations both domestially and internationally. In the omin! years, Wal-Mart will ontinue to e"pand abroad due to its international opportunities and time-tested strate!ies. httpAFFwww.raymondatala.omFwal-mart-swot-analysis-2F
IntrodutionWal-Mart is an international store that offers workin! families with the items they reGuireat pries whih are Guite ompetitive. In eah of their worldwide markets, they make use of their stren!ths as a worldwide orporation to meet the re!ional needs of their onsumers, and offer assistane to ommunities throu!h their orporate soial responsibility drives. The =)ST#politial, eonomi, soial and tehnolo!ial( and SWOT #stren!th, weakness, opportunity andthreat( analysis of Wal-Mart store forms the basis of this disussion.Stren!thWal-Mart is the lar!est wholesaler in the !lobe. It was ranked number one in 2877 by
5 onsumable staples as an alternative of disretionary items. This sort of fle"ibility and influeneenables it to maintain its marketplae position.WeaknessesWal-Mart is a bi! bo" vendor and runs superenters whih neessitate lar!e area for everynew stok. This limits its e"pansion in urban plaes where the spae available is limited. Studiesshow that store sales at Wal-Mart in &meria have redued for ei!ht repeated Guarters due to itsmarket plae spae limitations and osts. Thus, it has beome more ruial for Wal-Mart to omeup with a new set up that aommodates its limitations and whih is more apt to the urban areas.This is beause its ompetitors like +osto and Teso are also aimin! to ome up with newworkable setups. Therefore, if they mana!e to be suessful then Wal-Mart will have a ompetitivedisadvanta!e.OpportunitiesWal-Mart has been inreasin! its e"istene in a number of developin! eonomies likeMe"io, South &fria and raBil. These eonomies have been desribed as some of the fastin!!rowin! eonomies in the !lobe. y establishin! in these plaes, thus, Wal-Mart is !uarantee oninreased volume of sales as time pro!resses.ThreatsThere has been a hi!h inrease of employees whih indiates a possibility of inrease in payroll e"pense and health are benefit e"penses. The labor e"penses for orporations in the$nited States have been inreasin! as the health are har!es and wa!es rose in the reent times.&ordin! to business estimates, health are pries for the $S workers are estimated to rise by C perent in 2878 and C.3 perent in 2872. The rise in medial har!es ontinues to outdo inflationand pay rise #i! Hots, 288C(.
9 One of the basi drivers that are likely to ause the rise in medial har!es in 2872 is that, employees are worried about losin! their positions and possibly their health over. Thus, they make use of their health are e"essively while they still ontain it.=)ST &nalysis for Walmart analysis presents an evaluation of maroeonomi
framework that affets a partiular industry or firm.+urrently, the understandin! of ontinuously han!in! environment, tehnolo!y, andompetition ompels Wal-Mart to think strate!ially and to deide pretty fast. Its strate!i planstake the plae of lon! term plans.Wal-Mart has been at times subeted to politial ations and law suits.
Strengths J It is the world lar!est ompany in term of revenues. J
It is well known for lowest ost produts.
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Wal-mart has the lar!est employee base.
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The ompany overed most of the $S market and havin! a hu!e market share.
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Walmart offers variety of produts in their stores.
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Walmart is operatin! in 79 ountries with 2,DC8 stores.
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It sells 98E of private brands whih are produed throu!h ontrats with manufatures.
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i!h ustomer satisfation.
J The S&Ms +lub ustomers are able to buy the produts in bulk Guantity and !ettin! the advanta!e of low pries. J
& Wal-Mart super store offers non stop shoppin! for their ustomers.
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Satisfation !uaranteed pro!rams promotin! ustomer !oodwill
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uy from loal merhants when possible
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Stok ownership and profit-sharin! with employees
&eaknesses J The +orporation is hu!e but still has presene in 79 ountries. J
+ustomers sometimes are urious about the Guality of produts.
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%eep poor performane employees on hand.
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The market share is low outside the $S market.
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Supplier profit mar!in is very low.
*pportunities J Most of the International Market are untapped speially the &sian +ountries. J
6oint ventures to inrease market share in international market.
J The inflation in $S market diverts the ustomer from buyin! e"pensive produts towards heap produts. J & lot of retail or!aniBations are leavin! out of business due to the drop in disposable inomes. This an help Walmart by !rowin! its ustomer base due to the bar!ains that it an provide its ustomers. J 'ue to the heap rate that the or!aniBation is able to buy its produts from suppliers, it is able to provide ustomers with even better bar!ains to !ive onfidene them to shop at Walmart.
hreats J e!ulation of Wal-Mart pharmaies J
Small towns do not want entry of Wal-Mart
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ad media e"posure for %athie Hee rand
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Kariety of ompetition nationally, re!ionally and loally
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Substitute produts more easily beause of intense ompetition
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Wal-Mart is ritiiBed several times by ommunity !roups.
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The ompetitors are !ainin! ontrol over International Market.
J ein! a worldwide retailer means that you are unovered to politial troubles in the ountries that you operate in.
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S&* nalysis o% &almart
Strengths - &almart has become the largest retailer in the ;S, and perhaps the world. +tIs huge buying !olumes and negotiating style keeps its cost low, which allow them to keep their prices low. Jeople will tra!el a pretty long distance to shop there. +t has in!ested hea!ily in so%tware technology to keep tight controls on its operations. Weaknesses - Small loal businesses often anLt ompete with Walmart, and !o out of business, whih often alienates the small loal business ommunity. Walmart has been sued for unfair labor praties as well. These and other issues tarnish WalmartLs ima!e, espeially for those who are diretly impated. Opportunities - *rowin! markets outside the $S offers a !reat opportunity to ontinue its !rowth. Threats - ein! number one in its market, some of WalmartLs proven strate!ies are bein! imitated, to various de!rees, by other la
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