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SWOT Analysis Walmart

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79 views3 pages

SWOT Analysis Walmart

Uploaded by

sreepoojaar
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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The Walmart SWOT Analysis 2021

The Walmart SWOT elaborates the internal (Strengths, Weaknesses), and external
(Opportunities, and Threats) strategic analysis for the company. It will provide a
visual overview that will prompt discussion around the company’s strategy,
situation, and potentiality. This SWOT analysis addresses the firm’s powers,
weaknesses, growth opportunities, and threats.

SWOT Analysis of Walmart:

The Strengths of Walmart

 One of the major strengths of Walmart is its brand name which is well-known
around the globe.

 Walmart efficiently maintains its resources including information methods,


supply chain systems, delivery facilities, knowledge, and other skills. They
track down their inventory, sales, and everything technologically.

 Because of, its low product prices, it became a household name. Walmart is
able to purchase its products in large quantities so it gives a big discount.
Customers pay less at Walmart than other stores.

 Employees are the key assets of Walmart. It hugely invests its time and money
in developing and managing its employees.

 It can hire people from any country it wants. So, for hiring skilled people and
people from other cultures, it can set-up a new retail shop in a new place
easily.

 Walmart has abroad technological advancement, which makes their work


much easier than its competitors.

The Weaknesses of Walmart

 Due to naming bigger discount Store. If the price goes up, people will start
leaving the products of Wal-Mart. That’s why the company cannot offer a
bigger price and make more profit.

 Several times, Walmart has received criticisms and claims regarding its
employees. Low wages, inadequate healthcare, and poor working conditions
are a few of the issues that can be affected the brand name.

 Many high-end specialty retailers have the upper hand in bringing quality
exploring buyers who have a low sensation to rate.

 Due to large expansion in the world and a massive spread of control, Walmart
could leave weak in some areas.
 A gender discrimination lawsuit was filed against Walmart in 2007. As per
this lawsuit, Female employees are discriminated against in regards to
promotions and pay scales.

 The company doesn’t own any specific competitive edge over its rivals except
its huge business size that’s why Walmart’s business model can be easily
copied.

The Opportunities of Walmart


 Walmart can concentrate on expanding its business to the markets which are
not yet tried such as Latin America and China.

 So far, Walmart has extremely poor physical stores, but they could improve
with their online business. By opening on the store, the offerings, and
shipping, they could spread their wings worldwide, similarly to Amazon.

 In a deep Walmart case study, Walmart can promote its grocery products to
compete with other grocery retailers in the market. It will eventually increase
their brand value.

 They could offer more healthy-food alternatives in their grocery section like
the health-conscious bandwagon which will be unique from other competitors.

 There’s also the opportunity to tie-up with bigger companies to branch into
other services such as health insurance, coffee stores, and travel agencies.

The Threats of Walmart

 The competition is increasing day by day. There are many competitors of


Walmart like Target, its direct competitor, providing similar products.
Similarly, Alibaba, Amazon, Costco, Dollar General, and many others.

 This is also a threat to Political and legal affairs can always hinder the
company to operate in some countries.

 The healthy lifestyle trend is a threat because the retail giant currently does
not prioritize healthful products in its stores.

 Customers have complained many times about some technical issues with
Walmart’s website. However, Amazon is known for its fast, effective, and
organized website for customers.

Recommendations

Following recommendations are given through which Walmart can improve its
weak points and strengthen its market position for the future:
 Improving its HR management standards and resolving the employees’ issues.
An effective HR system will prevent Walmart from any potential criticism
regarding its workforce.

 Expansion of business to global markets – Walmart needs to explore


opportunities in developing markets to strengthen its position and increase
market share.
 Bringing advanced improvements in global supply chain and distribution
network – It will fortify its vast retail empire.

 Addressing the controversial issues as quickly as possible. Walmart needs to


enhance its online selling website and include only authentic products to
prevent further public criticisms.
 Upgrading its online e-commerce sites. Walmart needs to resolve technical
issues that hinder the websites’ progress and offer a satisfying shopping
experience for the customers.
 Boosting marketing and promotional activities – it will help the company to
enhance its brand image and attract new customers.
 Walmart should also play an active role in environmentally sustainable
practices to create a positive image in the industry.

Conclusion

Every business has threats that are facing them, no matter the size of the company.
Also, every business has its opportunities lined up to make them happen, no matter if
it is a newly established start-up or an enormous brand. And there will always be
unique strengths and weaknesses to every company in a market. There are no
exceptions, therefore, your business dealings and their detailed features need to be
analysed as well with a SWOT analysis.

Walmart SWOT analysis reveals that though the company has its customer base
and popularity, it still needs a way to go. Otherwise, it may fail to retain its position
as a retail company. Its other competitors and small businesses can threaten
Walmart’s growth.

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