Case Study: Walmart’s SWOT Analysis
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Case Study: Walmart’s SWOT Analysis
Walmart Inc. has remained to be the top retailing company since 2000 in the whole world. It also holds the title of having the highest revenue (Grant, 2019). However, trends influence market change, and as Walmart tries to update, other companies that specialize in various small markets give it a competition. The latest greatest competitors of Walmart are Amazon and Alibaba. Despite the brutal competition against Walmart, its outstanding retail capabilities enhance its survival and performance because of its proper SWOT analysis.
The strengths of Walmart influence its success. Some of them include the worldwide recognition of its brand helps it to operate globally in nearly every country, thus increasing its sales and popularity. Moreover, its prices are fixed and very affordable to many people. Walmart can do this because of its usage of economies of scale. The company also has great human resource management, effectively managing its supply, distribution, information systems, and employees. Additionally, it has stronger market power because of its large size, suppliers, and competitors in the market.
Some of Walmart’s weaknesses have included global knowledge of its poor working conditions and treating employees badly (Parker, 2019). It has received many lawsuits and negative publicity about it. It has also been taken to court for gender discrimination. Other weaknesses are imitation, which gas led to having extremely diversified products and low profits.
Walmart has numerous retail market opportunities, such as expanding to new markets like in the Middle East. Moreover, it can merge with other small retailers to improve its profits. It can also improve the quality of its products and practice better human resource management since it depends on customers and employees.
External threats that affect Walmart are technical issues on its website, which many customers have raised complaints. Political and legal issues of foreign countries Walmart operates. Stiff competition from major online firms like Alibaba and Amazon and selling unbranded goods like the fake beer from a non-existent Trouble Brewery Company.
In conclusion, despite the stiff competition in the retail market, Walmart survives because of the proper analysis of its SWOT. Some of its strengths include global marketing and brand. Its weaknesses are low-profit margin and imitation. Its opportunities are merging and exploring new markets while its threats are political and legal issues from foreign countries.
References
Grant, R. M. (2019). Walmart, Inc. in 2018: The World’s Biggest Retailer Faces New Challenges. Contemporary Strategy Analysis (10th ed., pp. 428-441). John Wiley & Sons, Inc.
Parker, B. (2019, November 28). Walmart SWOT analysis 2019 | SWOT analysis of Walmart. Business Strategy Hub. https://bstrategyhub.com/swot-analysis-of-walmart-2019-walmart-swot-analysis/