Walmart Swot Analysis

Statement of Problem
Wal-Mart must decide on how to improve management of its enormous company and continue its domestic and international growth. In addition, Wal-Mart must address ancillary issues such as development of store format, technology deployment, human capital, and internationalization in order to have further short and long-term success.

Strength Weakness
 Economics: great earnings and profits.
 Goodwill: well recognized name, brand.
 Operations: o Size (one of the largest grocers, third largest pharmacy). o One-stop shopping for all products. o Diversification: Well designed structure of having superstores, stores, and discount stores to attract all types of shoppers. o SAM’S Club. o Online sales campaign development. o Employment structure that saves costs (health care, employment benefit packages).
 International: o Expansion into foreign markets (many competitors do not have such large international influence).
 Technology: well developed IT system o World’s best inventory measurement.  Economics: some international sectors of growth failed to perform, such as Germany, Japan in 2002.
 Competition: other companies such as Home Depot, Target, Costco, etc., still occupy a significant portion of the market share.
 International criticism: child labor, poor working conditions, workplace safety, low pay may affect its international outreach.
 Operations: inventory measurement may be further improved from 94% accuracy to 100%.
 Negative social perception
 Working conditions/employment benefits for low-earning associates.

Opportunity Threat
 Further expansion into international markets, particularly countries of Asia, Pacific Rim, Europe, and South America.
 Further development and expansion of online sales, electronic sales, and various services provided on Wal-Mart’s premises and online.
 Promote commitment to good working conditions, philanthropic, and favorable image.
 Further IT development.