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Swot Analysis Walmart

Essay by   •  February 14, 2011  •  Case Study  •  437 Words (2 Pages)  •  1,649 Views

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SWOT Analysis Wal-Mart

Strengths

* Wal-Mart is a powerful retail brand. It has a reputation for value for money, convenience and a wide range of products all in one store.

* Wal-Mart has grown substantially over recent years, and has experienced global expansion (for example its purchase of the United Kingdom based retailer ASDA).

* The company has a core competence involving its use of information technology to support its international logistics system. For example, it can see how individual products are performing country-wide, store-by-store at a glance. IT also supports Wal-Mart's efficient procurement.

* A focused strategy is in place for human resource management and development. People are key to Wal-Mart's business and it invests time and money in training people, and retaining a developing them.

Weaknesses

* Wal-Mart is the World's largest grocery retailer and control of its empire, despite its IT advantages, could leave it weak in some areas due to the huge span of control.

* Since Wal-Mart sell products across many sectors (such as clothing, food, or stationary), it may not have the flexibility of some of its more focused competitors.

* The company is global, but has has a presence in relatively few countries Worldwide.

Opportunities

* To take over, merge with, or form strategic alliances with other global retailers, focusing on specific markets such as Europe or the Greater China Region.

* The stores are currently only trade in a relatively small number of countries. Therefore there are tremendous opportunities for future business in expanding consumer markets, such as China and India.

* New locations and store types offer Wal-Mart opportunities to exploit market development. They diversified from large super centres, to local and mall-based sites.

* Opportunities exist for Wal-Mart to continue with its current strategy of large, super centres.

Threats

* Being number one means that you are the target of competition, locally and globally.

* Being a global retailer means that you are exposed to political

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