Walmart SWOT Analysis

Strengths

1.Multinational corporation thus far reaching customer base

2.Sells wide variety of low cost/ discount items

3.Strong company brand

4.Largest grocery retailer in USA

5. Good use of technology

Weaknesses

1.Large variety of items sold thus competition from various angles and inability to focus solely
on an area

2.Non unionized staff

3. High staff turnover (70% annual rate)

Opportunities

1.Decreased standard of living due to recession thus lower price items are in demand

2.Many small manufacturers looking for markets

Threats

1.Global competition

2.Lots of political issues to contend with due to presence to several countries

Strengths:
1. Largest private employer in Canada, Mexico and US.
2. World's largest retailer and corporation
3. Listed among America's most admired companies (by Fortune magazine)
4. Engages in philanthropic work
5. Allows shoppers to purchase items at lower prices.
6. Exploited rise of IT and explosion of global economy in its operations to drive market share
increases and revenue generation.
7. Supply chain management system allows Walmart to ensure right product mix of products
in stores, efficiently manage items from warehouse to shelf; identify customer spending
patterns and make projections based on habits as well as other data from Barcode
information.
8. Utilize a pull production system based on what customers want and what prices they are
willing to pay for it and leverages size and bargaining power to influence suppliers to meet its
demands.

Weaknesses:
1. Resists trade union representation (which is not necessarily as bad as the fact that it is
perceived that workers are exploited in terms of health benefits due to low wages which make
the majority of them ineligible for health insurance or benefits and dependent on federal
policies.)

Opportunities:
1. Expansion opportunities exist in international markets, especially Asia and developing
countries.
2. Use of internet/e-commerce to continue to attract customers

Threats:
1. Competitors seem to be gaining market share in international markets.
2. Walmart must be aware of political, economic and legal issues which may exist from
targeting overseas markets.
3. Pressure from watch groups and union groups to force Walmart to unionize workers can
cause negative publicity and damage brand.
4. Apparel and food are very slow growth sectors