Wal-Mart Swot Analysis

Topics: Wal-Mart, Employment, Sam Walton Pages: 4 (1245 words) Published: October 19, 2012
Running head: Wal-Mart SWOT Analysis

Wal-Mart SWOT Analysis
September 10, 2012

Wal-Mart SWOT Analysis
Wal-Mart’s founder Sam Walton had an idea to save customer’s money by keeping sales prices lower than many of his competitors. Mr. Walton’s goal was accomplished by reducing his profit margin and now, Wal-Mart has become the world’s largest company, in terms of returns. According to Datamonitor (2012) recorded revenues of $421,849 million was Wal-Mart’s income in 2011, an increase of 3.4% over 2010. The operating profit of the company was $25,542 million in 2011, an increase of 6.4% over 2010 (Datamonitor 2012). Wal-Mart’s mission statement was to “help people save money, so they can live better”. (Wal-Mart’s Mission Statement). Brilliant concept, to sell the essentials those individuals need and use every day by making these available and inexpensive for the average customer. As a mutual fund manager, it is essential to investigate the company up for investments. The decision will in turn, hopefully, will be profitable and worth the investment. Conducting a SWOT analysis is a strategy used to make a more informed decision on if the investment would be cost-effective and valuable. Wal-Mart has industrialized a dependable and devoted customer and employee base. (Broughton 2012). Good customer service, smart marketing in areas that are often overlooked by competitors and great products with manageable pricing are ways Wal-Mart was able to achieve this loyalty (Broughton 2012). Wal-Mart is able to provide great pricing because of the amount of products within their stores and huge discounts provided from suppliers. It is effortless to pass the savings to customers. Employees are well taken care of with benefits of health insurance and discounted purchases, flexible hours and competitive wages. Wal-Mart has built a massive empire over the decades and their size and buying power has great strength (Stewart 2008). Wal-Mart is...
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