Walmart’s Strengths
This section of SWOT analysis gives the strength of Walmart business which is related to its size. Despite its frailty of cheap retailer, the relative toughness warrants the company to withstand hardships. Walmart’s strengths in terms of global expansion and growth include:
- Global organizational magnitude
- Global supply chain
- Robustness of supply chain
The magnitude of Walmart’s organization enables the business to enlarge and sprout itself. Worldwide setup of supply chain makes Walmart irrepressible against market-given challenges such as disturbance in local supply chains. Moreover, due to Walmart’s capacity to oversee the progress of products from suppliers to warehouses, it has become a systematic organization. This SWOT analysis shows that corporation’s leverage provides an ambitious advantage over other compact retailers.
Walmart’s Weaknesses
In this SWOT analysis, Walmart’s weaknesses weaken the firm to resist the challenges. The frailty lies in the corporate’s generic competitive strategy and its effects in growth, abilities, assets, and financial gain. Therefore, owing to its policy, it leads to the following frailties:
- Low financial gains
- Trouble-free replicable business model
- Competitive drawback against high-end strong-suit vendors
Cost leadership strategies produce low financial gains. By lowering vending costs, Walmart has to reduce the profits. Therefore, the company has to rely more on the volume of sales. The practiced cost leadership strategy makes the company vulnerable as this model is easy to replicate. Besides its size and prices, the company does not contain any key discriminator from other corporations to target audience. Also, high-end vendors get more advantages against Walmart in attracting buyers who prefer quality over price. Therefore, these weaknesses shown by this SWOT analysis of Walmart structure reflect vulnerability to advance and tech-oriented giants in the production domain in the presence of giant e-commerce firms like Amazon.
Opportunities for Walmart
Walmart’s opportunities lie in its expansion and upgrading business precedents. It is also related to international monetary circumstances. Furthermore, the problem related to human resources can be turned into an opportunity to grow. This segment of SWOT analysis provides the firm’s opportunities which are possible by:
- Intervention in developing countries
- Amelioration of human resource practices to gain upper hand in labor market
- Raising the quality measures
The firm’s opportunities in developing nations depend on their high-level economic growth. Whereas the uplift of HR management is associated with the criticism of already settled precedents. This is the way to attract a highly capable workforce. Quality standards of the firm can be addressed by taking consideration of consumers’ demands about the health effects of purchasing cheap products and occasionally cheap quality levels. Hence, this segment addresses the company’s scope if it overcomes its frailties.
Threats For Walmart
The threats to Walmart corporation are associated with the retail trade scenario along with the changing perceptions of consumers about the products they purchase. These aspects should convince the firm to make some reformative strategies. This part of SWOT analysis brings forth the challenges to Walmart which are:
- Consumer attraction to Quality
- Vigorous competition
- Diverse ranged online Retailers
The consumer attraction to the quality of the product can be a threat or an opportunity for a company’s business. Walmart is facing difficulty as most of its products are perceived to be unhealthy, or less organic or unnatural. Therefore, the company must widen its horizons by rectifying quality-related concerns. But quality assurance has become a challenging task as most retail giants do not take healthful products as their priority. Moreover, vigorous competition is another threat because other vendors can use intense competitive strategies to undertake Walmart’s customers. Furthermore, small-scale and larger online vendors are a challenge to firm’s retail trade. By using online platforms, small vendors or even individuals can sell their products bypassing the firm using their web platforms to capture consumers. In the same way, this SWOT analysis segment of Walmart lnc., mega online vendors have the capability to capture and satiate customers. They can specifically target those who prefer to buy at home via online platforms.
Recommendations For Walmart
The SWOT analysis shows that Walmart should broaden its opportunities using strengths to capture more in the international market. Walmart’s weaknesses and threats should be second in the list. Walmart must refine its HR handling and must ensure end-product quality in order to enhance their performance. Moreover, companies need to exploit economic opportunities worldwide, especially in developing states. Walmart’s strengths in effective and extensive supply chain due to its worldwide organizational size, supply chain, and efficacy of supply chain can support rigorous international expansion in overseas market. Imperatively, company must undertake serious strategic reformations based on its weaknesses and threats presented in this SWOT analysis, so that company could rehabilitate itself and exploit for long-term growth of a globalized and progressively online retail market.
