Walmart

Group F5

SWOT Analysis Discount

Retailing
Strengths

Weaknesses

Low Growth
Many Competitors
Not a main player in major metropolitan areas.
annual turnover rates of only 45%.

Opportunities

Threats

International Expansion
Acquiring smaller stores to increase market
sharge
Joint ventures and alliance with other players

Imitation by other brands

Substitution caused by supercentres, other stores
Socioeconomic and political problems of the
country.
Labour union pressure pressuring to Walmart
entry into the community

Pro bl em s

Leverage

Companys strong brand image and

reputation that generates loyal consumers that
We sell for less
Economies of scale advantages in
distribution, advertising, and procurement.
Good relationship with big brands (P&G)
Operating cost low & Operating income high
Efficient Distribution systems;

Resource Based View

Competency

ini
durabilit
mit yabil
ity

appropri
ability

Difficulty Conclusi
of
on
Substitu
tability-

Integrated
Technology of
Supply chain

Yes

Yes

Yes

Yes

Highly
Sustainab
le

Ability to
generate large
sales volume

No

Yes

No

yes

Medium

Superior
logistics system

Yes

Yes

Yes

yes

Medium

Operation
decentrailizatio
n

Yes

Yes

Yes

No

High

Strong culture

No

Yes

Yes

Yes

High

Resource Based View

Test Of Inimitability Medium
Wal-Mart's model can be imitated but its model has greater path dependency. Their
value proposition of lowest price and products of good quality is hard to be
followed by other firms
Test of durability- Medium
It is in the forefront of technology and It has a brand name which is durable
Test of appropriability
High
Wal-Mart's values are controlled by the company. Suppliers, consumers, distributors
etc. have minimal control.
Test of SubstitutabilityMedium
There are lot of substitutes for Wal-Mart but most of them are inferior to Wal-Mart
Test of competitive superiority- High
It has lowest operating cost and highest operating income in the industry which
give Wal-Mart a big competitive advantage
By Analysing these factors It can be inferred that Wal-Mart's competitive advantage
is sustainable

Walmarts international
Expansion