Wal-Mart SWOT Analysis
Strengths
Wal-Mart is pioneer in the retail industry with the wide spread network of stores.
Listed number one in fortune 500 hundred companies based on revenues and profits.
Wal-Mart is the giant in retail industry having high purchasing power of goods from supplier in bulk quantity at lower prices. The good thing about Wal-mart that its shifts the low cost advantage to customer and available the products at lower prices.
Customer feel very convenient to find most of the products under on roof.
Wal-Mart has efficiently used the information technology for tracking the goods on Wal-mart stores shelves. The system automatically detect the lower quantity and generate orders for suppliers.
Supply chain management and logistics is one of the strengths of Wal-mart. This allows Wal-mart to utilize the Just in time inventory concept and avoid the pilling up inventory to save the extra cost for maintaining inventories in the warehouses.
It has loyal customer base because it meets the expectation of customer by always delivering the goods at lower prices at compare to its competitors.
Wal-Mart always keen to provide training to their employees to improve the customer service level.
Wal-Mart is an multinational organization currently operating in 14 countries and planning for further expansion.
Weaknesses
Mission statement communicate the company objectives and reason of existence to the internal and external audience. Unfortunately Wal-Mart still not have the formal mission statement.
Employee appraisal is conducted to determine the performance of employees although Wal-Mart has been doing that but It keeps the the employees which does not meet the performance benchmark.
Although customer agrees that Wal-Mart provides the goods at lower prices but on the other hand they are also concerned about the poor quality of few products.
Wal-Mart facing difficulties in outside USA such as countries like China.
Wal-Mart gives very low profit margin to the supplier.
Wal-Mart policies are old fashioned, it should be updated time to time.
Opportunities
The current recession situation reduced the purchasing power of customer. Wal-Mart could market its strengths to increase the customer base and revenues.
Market development in the untapped market e.g Asian countries
Maintain better relationship with employees and suppliers by giving them benefits.
Improve the customer experience by revamping the stores and add up the facilities.
Threats
Wal-Mart is competing in the market on low cost advantage. Competitors are imitating low cost strategy may weak the Wal-Mart position.
Competitors are giving hard time to Wal-Mart nationally and Internationally.
Bad word of mouth from employees and supplier may harm the Wal-Mart image.
Being a worldwide retailer means that you are uncovered to political troubles in the countries that you operate in.
Wal-Mart is criticized many time by the community groups.
Customers are also curious about the security now a days due to terrorism.
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