Walmart- A SWOT Analysis

Walmart, the largest retailer in the world, was founded by Sam Walton in 1962 in Arkansas. Today, Walmart operates over 10,585 stores worldwide and is led by current CEO Doug McMillon. The company has made significant contributions to American society by providing low-cost goods and services to consumers. ..

Walmart is a company with strengths in merchandising, distribution, and customer service. However, it also has weaknesses in its e-commerce platform and its ability to compete with online retailers. To address these issues, Walmart must focus on its merchandising strengths and develop new e-commerce platforms that are more competitive.

SWOT Analysis of Walmart:

1) Walmart‘s STRENGTHS:

Walmart is one of the most reputable U.S.-based retail companies worldwide. Over time, it has expanded its operations to 24 countries. Furthermore, it has formed a joint venture with India’s largest retail store-Bharti and is a stakeholder in the Flipkart group. This retail chain operates exclusively in South Africa, Canada, and Chile. ..

Walmart adheres to a model where they emphasize increased production and minimal prices for products. This allows them to keep their prices low while still being able to produce products in multiple locations around the world. ..

Walmart is a large retailer that sells a variety of products. This factor helped them capture a prominent position in the marketplace. ..

Walmart’s excellent resource management system includes handling information systems, supply chain, and distribution facilities. This allows them to have an increased advantage over other companies. ..

Walmart has employed around 2.3 million associates worldwide, making it one of the largest employers in the world. The company is committed to providing skills and knowledge to its employees, and considers them an essential asset to the organization.

Retailers have seen a surge in sales from online orders in recent years, as customers are more likely to trust and purchase items from well-known brands online. This trend is especially pronounced for established retailers, who can benefit from the trust and familiarity of their name. ..

2) Walmart‘s WEAKNESSES:

Walmart is a company with a slimline profit margin. They are currently focusing on low price and cost leadership strategy, but some changes are needed to improve the net profits.

In 2001, some female employees made a claim of gender discrimination, citing that they received lower pay scales and promotions than their male counterparts. A new lawsuit was filed in 2017 and is still ongoing. ..

Walmart’s model of retail is flawed because it does not have a differentiator. This can give the company an edge over other businesses, which can have a negative impact.

The main issue with organizations is that they are often not run in a way that benefits their employees. This can lead to problems such as safety issues, work overload, discrimination, etc. which curtails the employees’ credibility and makes it difficult for them to feel satisfied with their job. This can have a negative effect on the organization’s productivity and stability. Without employees feeling happy and content in their work, it can lead to turnovers and a decrease in value for the company’s money.

3) Opportunities for Walmart:

The growth of online markets has led to a new level of income for Walmart. This could be a trendsetter for other companies as well, as the market is growing rapidly. The expansion of online stores has led to an increase in income for Walmart, which could lead to more growth in the future.

Walmart has been known for its affordable prices and quality products for years, but sometimes, the essence of quality gets ruined in the process. They have a lot of opportunities to improve their quality by doing things like increasing production and hiring better employees.

There is always an opportunity for creating an environment that is employee-friendly by improving the workplace conditions. This can increase job satisfaction, which is a booster for better functioning and productivity.

Walmart has been expanding to various developing countries in order to boost their economies. This has been fruitful for the company as it has allowed them to sell products at a cheaper price and ensure that they have cheaper costs of production and labor. This is an opportunity that Walmart can always take up with many benefits.

4) THREATS for Walmart:

Walmart is one of the largest retail corporations in the world, but it is not immune to competition. Many smaller retailers, like Primark and Costco, can pose a threat to Walmart’s dominance. To stay competitive, Walmart always needs to be aware of market trends and make sure its working environment is up to par. ..

Walmart is in the midst of a number of controversies, some related to social justice and others harming elements of society. If these controversies die down over time, it gives the rival an edge to use them. But this can also create problems because politics can get in the way!

Walmart has been known for its poor construction, which frustrates customers. Multiple complaints have arisen about the server, which has caused it to crash multiple times. However, it is possible that Walmart can weather these challenges and still be profitable.

CONCLUSION:

Walmart’s strengths include its low prices, its large selection of products, and its customer service. However, it also faces several weaknesses, including its lack of diversity in its workforce, its high cost of goods, and the fact that it does not have a strong presence in certain markets.