Gasoline Prices and ConsumerBehavior Political. Businesses are very vulnerable to changes in the political situation.
SWOT is usually used by management teams in identifying external and internal factors that have the possibility of affecting the future performance of a company Faarup,p. Wal-Mart is the largest retailer globally. It can employ SWOT in the analysis of results in order to improve performance while continuing its expansion across the world.
Weaknesses and strengths focus on the internal factors that are identified via internal scanning. The focus of this paper is on providing SWOT analysis that Wal-Mart can use in strategic planning while expanding globally.
It is a leader in the market due to the position that it currently occupies as the largest retailer globally with different products. Wal-Mart has high revenue as well as operating income that no closest competitor can match. With large-scale operations, this company has the ability to negotiate with suppliers so that they can supply their products at low prices.
As such, this is a competitive advantage that the company can use in improving economic returns as well as market share. Offering products at low prices will attract more customers. Despite dominating the retail market in the United States, this company is still expanding operations globally at a rapid rate.
The low operations cost of Wal-Mart has made it possible for it to continue providing low prices to customers as compared to those of competitors within the same industry. The overseas expansion strategy of Wal-Mart provides a staunch growth foundation. During the fiscal year, Wal-Mart generated Instant access to this kind of information as well as quick analysis enable every store to make informed and timely decisions that include responding to the dynamics of the market as well as giving the company a better competitive advantage.
Weaknesses The labor relations of Wal-Mart have suffered adverse effects due to litigations. FromWal-Mart has faced several lawsuits and charges concerning labor relations. This can affect its competitive advantage negatively in case the employees start asking for higher compensation in order to work for it.
Skilled employees may also opt to work for its competitors. Opportunities Emerging markets that include Brazil, China and India have retail markets that are growing steadily.
These have created new opportunities that Wal-Mart can exploit in order to enhance its revenue growth. This company has made an announcement that it has plans for more expansion within the new economies so that it can benefit from the steady growth of retail markets. Internet retailing is growing in different countries providing opportunities for Wal-Mart to serve more markets.
In addition to direct sales, information dissemination via the website of this company has played an instrumental role of helping retailers increase sales.
Currently, Wal-Mart has 10 e-commerce websites that it operates outside the United States. This will help the company in leveraging on the expanding online market in China.
Through online channels, the company will be able to penetrate into the newer markets at a rapid rate especially in places where retail stores establishments have limited expansion. This is because there is a steady growth of the market for private label.
Consumers prefer private label commodities that are relatively cheaper because they are more attractive as alternatives to the national brands whose prices are higher. This is an opportunity that Wal-Mart can exploit by expanding grocery stores in order to increase revenues by benefiting from this worldwide trend.
Wal-Mart ought to expand organizational diversity through the employment of locals in its stores overseas while expanding. Threats The labor costs of Wal-Mart have been increasing more so in the United States due to increased costs of healthcare and wages.
There is also intensifying competition that Wal-Mart is currently facing in its international and domestic markets. The worthy competitors of this company in U. S for instance include Target and Tesco. These offer general merchandise that are similar to those of Wal-Mart. Companies like WinCo Foods are eroding the competitive advantage that Wal-Mart has as the price leader because they buy products from factories and farms directly.
The client base of Wal-Mart is continuously being invaded by non-traditional competitors including Amazon e-commerce enterprise. This is because more consumers now start shopping through online sites like Amazon so that they can find the most ideal prices. This competition is likely to damage the competitiveness of Wal-Mart causing a loss of the market share.
Overseas, the company has political instability to deal with due to the status of its worldwide retailers. Therefore, governments can place barriers to the entry of Wal-Mart or expansion within their economies in order to protect local enterprises or industries.Walmart Swot Analysis SWOT Analysis Wal-Mart Dala Czepla MGT October 15, Dr.
Lola Jackson Wal-Mart was founded by Sam Walton in , incorporated in and publically traded in Firms are usually best of with a portfolio that has a balance of firms in each caninariojana.com cash cows tend to generate cash but require little future caninariojana.com the other hand, stars generate some cash, but even more cash is needed to invest in the future—for research and development, marketing campaigns, and building new manufacturing facilities.
Nov 12, · A democracy without effective citizenry for large sections of the political community is democracy only for the few. A person cannot be whole while most of the world is broken. A presidential form of government would be better than the current parliamentary system.
Abortion rights are necessary Adult-oriented cartoons should only be broadcast on television. SWOT Analysis – Wal-Mart Juan Carlos Escobar BUS 20 Principles of Management Dr. Harry J. Caldwell March 21, SWOT Analysis – Wal-Mart In the study of management is very interesting making an analysis exercise of a market company like Wal-Mart which has revenues greater than the Gross Domestic Product (GDP) of many countries.
Wal-mart SWOT Analysis Sample. Are you learning about SWOT Analysis? Use our free SWOT analysis to help you write a SWOT analysis essay, or an essay about Wal-mart. Strengths. Established name brand that is identified with reasonable to cheap pricing and bargain pricing.
Essay about Wal-Mart Formal Case Analysis-Swot Words | 13 Pages. Wal-Mart Formal Case analysis June SWOT Analysis The SWOT Analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and .