Walmart SWOT Essay Example
Walmart SWOT Essay Example

Walmart SWOT Essay Example

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  • Pages: 2 (392 words)
  • Published: November 7, 2018
  • Type: Paper
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Strengths

Wal-Mart is a renowned retail brand appreciated for its competitive prices, convenient shopping, and extensive product selection found in one place.

Wal-Mart's recent growth has been significant, thanks in part to its global expansion efforts through acquisitions like ASDA. This United Kingdom retailer has played a pivotal role in Wal-Mart's success. A major strength of Wal-Mart lies in its effective utilization of information technology to support its international logistics system. This technology allows the company to closely track product performance across different countries and individual stores. Additionally, IT plays a crucial role in streamlining Wal-Mart's procurement process.

A focused strategy is implemented for human resource management and development, highlighting the importance of people to Wal-Mart's business. The company invests both time and money in training, as well as retaining and developing its employees.

Weaknes

...

ses

Despite its IT advantages, Wal-Mart, being the largest grocery retailer worldwide, may have weaknesses in certain areas due to the vast span of control it has over its empire. This wide range of operations across various sectors such as clothing, food, and stationary may restrict its flexibility compared to more specialized competitors. Additionally, despite being a global company, Wal-Mart has limited presence in countries around the world.

Opportunities

There are several opportunities for Wal-Mart to expand its reach in new markets. One option is to acquire, merge with, or establish strategic partnerships with international retailers in specific regions such as Europe or the Greater China Region. Currently, the company only operates in a few countries, so there is significant potential for growth in consumer markets like China and India. Furthermore, Wal-Mart can diversify its store formats by expanding into local stores and malls instead of solely

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relying on large super centers.

Although Wal-Mart can continue with its current strategy of operating large, super centres, it should also consider certain threats. These threats encompass market leadership and competition at both local and global levels. Moreover, as a worldwide retailer, the company is exposed to political issues in the countries where it operates. Additionally, there has been a decrease in manufacturing costs for various consumer products due to reduced production expenses.

The decrease in production costs due to outsourcing manufacturing to low-cost regions has resulted in price competition, leading to deflation in certain product ranges. The presence of strong price competition poses a threat.

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