Walmart SWOT Analysis for 2016 SWOT analysis of any company is conducted to enhance its strengths and opportunities and work on its threats and weakness. Wal-Mart is a global corporation, founded in the year 1962 by Sam Walton. The corporation is spread in 28 countries and comprises of 11,527 stores and clubs.
Strengths: Walmart has gained world recognition which is its one the biggest strength. People trust it profusely and depend on it for monthly or weekly grocery. The global corporation, with its greater size, enjoys employee diversity. Walmart is the largest employer in America. It helps Walmart in getting skilled people irrespective of their culture or religion and can open an outlet anywhere. Walmart achieves economy of scale. It means that higher production level provides low manufacturing costs for goods. This creates an edge over competitors. All the business networks and processes of Walmart are conducted commendably, globally. The supply chain management of Walmart is excellent as it controls and monitors the retail shops competently.
Weakness: The low price strategy of Walmart brings it thin profit margins. This strategy is the main attraction for the consumers, if the prices are raised high, people will shift to its competitors. With an easy business development model, the strategies of Walmart can be easily implemented by the competitors with a modified touch. This can create an army of competitors that will minimize the revenues of the global corporation.
Opportunities: With the rise in developing markets, opportunities are also increasing. As a global corporation, Walmart should invade in emerging markets like China and India. This will create hefty revenues as the people in those regions now have better-quality lifestyle and prefer standard products as opposed to low quality goods. Inaugurating retail shops will help the organization in not only getting extra profits, but will also help in gaining significance over competitors. Though Wal-Mart offers high quality products, there is always a room for increasing the quality standards, as people are becoming more quality cognizant.
Threats: Walmart faces aggressive competition, particularly from local companies that provide cost effective products. The competition level has increased as the nations are being developed. The trend of healthy lifestyle also serves as a threat for Wal-Mart. Since people are becoming health conscious, they require products with high quality. Wal-Mart doesn’t customize the healthy products in their retail shops.
Conclusion: The global corporation, Wal-Mart has outclassed strengths than any of its weakness. It should however, focus on its opportunities which will curtail the threats.
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