Wal-mart employs more than 2. InWal-mart became No. Expansion became rapid in the 70s, however, to stores in 11 states, when a public offering provided the necessary capital infusion.
Weaknesses and threats should be secondary priorities for Walmart. Walmart can use these strengths to exploit its opportunities in the retail market.
The firm can also use its strengths to counteract the threats to its business.
This SWOT analysis of Walmart shows that the company can have higher long-term success potential through aggressive global expansion, especially in retail markets in developing countries. These strengths enable the company to withstand threats despite its weaknesses. The global supply chain also provides business resilience from market-specific risks.
Walmart uses the cost leadership generic strategywhich leads to the following weaknesses: Thin profit margins Easily copied business model Thin profit margins are a typical effect of using the cost leadership strategy.
Because Walmart minimizes selling prices, it also needs to minimize profit margins and rely more on sales volume.
The firm does not have significant competitive differentiators, except for its business size. These opportunities are linked to the global economic situation.
These factors should compel the company to make some competitive strategic changes. It is an opportunity for Walmart to improve its quality standards. However, this factor is more of a threat because the firm currently does not prioritize healthful products in its stores.
Because of the Internet, small sellers or individuals can bypass Walmart and use their own websites to sell products to online consumers.
Walmart can improve its HR management standards and product quality standards to improve firm performance. Also, the company must continue expanding its business to exploit economic opportunities in developing markets.
Wal-Mart Case Study By Mike and Sarah April 3rd, Summary Wal-Mart is a company based in North America but has become the largest retailer in the world.
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Wal-Mart Stores, Inc. Walmart’s Official E-commerce Website.
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Walmart's Supply Chain Management. Wal-mart is often credited with starting the practice of digitally sharing sales data with major suppliers, allowing the company to supply a wide range of products at the lowest cost and shortest delivery times. Wal-Mart Case Study - Free download as Powerpoint Presentation .ppt), PDF File .pdf), Text File .txt) or view presentation slides online.4/4(7).
This Walmart SWOT analysis reveals how the largest company in the world uses its competitive advantages to dominate and successfully grow in the retail industry.