Wal-Mart Swot Analysis

Topics: Retailing, Marketing, Competition Pages: 3 (640 words) Published: April 13, 2008
Strengths

·Wal-Mart is the #1 retailer in the world and was ranked #1 in sales by Fortune magazine. ·Wal-Mart has grown into a large global corporation by acquiring large retail competitors in international markets. ·Wal-Mart has brand recognition. It has high value in terms of convenience, product mix, and quality for money, and customer service. ·Wal-Mart donates large amounts of capital to several charity organizations. ·Wal-Mart is a leader in channel management, inventory control, distribution and warehousing, and information technology. ·Wal-Mart has clearly a clearly defined vision and a unified mission. ·Wal-Mart focuses much energy, time, and money into training, developing, and retaining employees.

Given these strengths, Wal-Mart is uniquely positioned to capitalize on its past growth and move into the future with confidence. It is recognized worldwide as a leader in the retail industry, with strong returns on investments. It has a strong base leadership and an eye toward expansion into new markets and product lines.

Weaknesses

·Labor relations problems
·Community relations problems
·Public Relations problems
·Huge span of control
·Lack of flexibility due to size of product mix across many sectors ·Lack of presence in many developed countries

Wal-Mart has not fared well with the labor unions and has been accused of wrongdoings including many workplace rights abuses. It often finds itself in trouble with regulators as well. The company has tendencies to put smaller “mom-and-pop” shops out of business because of its sheer size and ability to undersell most, if not all, of its closest competitors. Concerns have been expressed over the use of sweatshops in foreign markets, bringing up accusations of human rights injustices and taking away jobs from American workers.

Opportunities

·Form strategic alliances and joint ventures with other global retailers ·Future expansion into other countries worldwide.
·...
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