Strategic management: internal analysis Essay Example
Strategic management: internal analysis Essay Example

Strategic management: internal analysis Essay Example

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  • Pages: 1 (263 words)
  • Published: August 6, 2018
  • Type: Analysis
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Wal-Mart, a major US retailer, had a turnover of $345 billion in 2006 and attracts nearly one-third of the US population to its stores. As the world's largest public corporation based on revenue, it has over 6,200 facilities globally with 3,800 stores in the US and 2,800 international locations. Despite being less profitable than competitors like Home Depot, Dell, Target, Costco and Kroger due to an average savings of $957 per person for around 45 million low-income Americans who shop frequently at their stores (according to Global Insight analysis), Wal-Mart remains formidable with efficient logistics and distribution systems that manage operations from supply chain to product delivery. Its marketing manager aims to address growth issues while improving profitability and public image by analyzing strengths/weaknesses through SWOT analysis and Value Chain analysis leading to more targeted action

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plans. Wal-Mart's main strength is its bargaining power capable of procuring products from manufacturers at the lowest possible prices thanks to its formidable apparatus.Despite the presence of , there are a number of weaknesses in the operations of this company. The majority of their sales are dependent on products that are manufactured by third parties and sold under store-branded labels. There are several factors that contribute to slow sales growth, including aging stores, which accounted for over 40% of total sales in 2006 but only 17% in 2000. Frequent stock-outs also pose a challenge, particularly for popular items like textiles. Maintaining cleanliness and reducing checkout times have been difficult areas for improvement as well. Lastly, middle-income customers tend to purchase less due to unattractive aesthetics, styles, quality and customer service when compared with rival retailers.

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