SWOT Analysis of Walmart Stores

S- Strengths:

Walmart is number one in the Fortune 500 for 2018 with proceeds of over five hundred million. (Walmart Fortune) Walmart has established a brand-name that is recognized throughout the world, 27 countries to be exact. Walmart offers multiple categories of products including groceries, health and wellness, cosmetics, entertainment, auto care, hunting, apparel, outdoor, and home categories. They are known for their slogan ‘Save Money. Live Better’, you simply will live better by shopping at Walmart due to their incredibly low prices beating their competitors out of the park. According to Walmart’s website, they ‘currently employ more than 1.5 Million US Associates at more than 5,000 stores and clubs nationwide’ (Walmart Locations Around The World). ‘The company operates its business in various forms including supercenters, supermarkets, hypermarkets, warehouse clubs, including Sam’s club’ (Wal-Mart Stores Inc. SWOT Analysis November)

The United States at a Glance (Walmart Businesses):

Total Retail Units as of April 23, 2018 – 5,295

Walmart Super Centers – 3,550

Walmart Discount Stores – 377

Neighborhood Markets – 704

Small Formats – 99

Sams Club – 597

S-Strengths (continued):

Walmart is also focusing on expanding their business online. Online shopping is getting more and more popular and easier for customers to stay home and have their items and groceries delivered straight to their door. By offering online shopping and delivery Walmart will compete with competitors including Amazon, and eBay and bring in a copious amount of profits. Studies show that retail is slowing compared to online shopping, and Walmart’s online sales grew 44% compared to retail (Jurevicius, Ovidijus). Walmart is an outstanding corporation that will never stop growing and adding to the list of their strengths.

W-Weaknesses:

Even the best businesses in the world, including Walmart, has weaknesses. Walmart has an outstanding revenue however, out of the five hundred million earned, the profits are thin at only 9,862 million (Walmart Fortune). It is difficult for Walmart to keep their employees due to being paid minimum wage therefore they have a high employee turnover and lack of loyal employees. When they are bursting with customers and not enough employees, customers will go elsewhere. Walmart also lacks differentiation, and with little differentiation, they do not stand out. Being a large retailer with similar products, they are forced to compete with their competitors including Costco, Target, Amazon, and other grocery stores. Another weakness is that Walmart is only present in 27 countries, leaving out numerous developed countries they are not a part of including India, Russia, Germany, etc (24/7 Wall St).

O-Opportunities:

Being a large corporation like Walmart, there is always room to grow and flourish. Walmart has plenty of countries to add businesses to including India (population of 1.33 Billion), Indonesia (261 Million), and Pakistan (193 Million), and many more to grow. (24/7 Wall St) The online retail market in the US is the largest in the world and is the fastest-growing retail channel in the country (Wal-Mart Stores Inc. SWOT Analysis August) Increasing the online website and perfecting it will attract more customers for business in the future and will bring in more revenue. The extra money Walmart brings in will also increase revenue which means more money to pay their employers which benefits them in the long run. Higher pay will make employees loyal to the company. Walmart has multiple opportunities ahead and will continue to achieve new opportunities and opening new doors.

T-Threats:

Businesses make money, and people are always looking for ideas to steal and copy to make as much money as you are. Walmart has many threats and competitors. Walmart is a large store with multiple different departments which means a lot of stores are competing against them. Stores including Amazon, Best Buy, Target, Grocery stores, Drug Stores, etc (Wal-Mart Stores Inc SWOT Analysis August).

Conclusion

Wal-Mart Stores Inc. is an incredible industry. They are at the top of the charts and still working every day to increase and flourish their business. They are working to increase pay for their employees and improving their online website to compete against competitors. Walmart is working on new opportunities to spread their business to countries they are not yet apart of. No matter the threats or competitors that try to bring them down Walmart will continue to thrive and stay on top.

References

Jurevicius, Ovidijus. “Walmart SWOT Analysis (16 Key Factors in 2018).” Strategic Management Insight, PESTLE Analysis, 24 Apr. 2018, www.strategicmanagementinsight.com/swot-analyses/walmart-swot-analysis.html.

Smithson, Nathaniel. “Walmart SWOT Analysis & Recommendations.” Panmore Institute, 16 Jan. 2017, panmore.com/walmart-swot-analysis-recommendations-case-study.

“Walmart.” Fortune, Fortune, 2018, fortune.com/fortune500/walmart/.

“Walmart Locations Around the World – United States.” Walmart Corporate – We Save People Money so They Can Live Better., corporate.walmart.com/our-story/locations/united-states.

‘Wal-Mart Stores Inc SWOT Analysis.’ Wal-Mart Stores, Inc. SWOT Analysis, 18 Aug. 2017, pp. 1-9. EBSCOhost, stacks.tridenttech.edu/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=buh&AN=125475593&site=ehost-live.

‘Wal-Mart Stores Inc SWOT Analysis.’ Wal-Mart Stores, Inc. SWOT Analysis, 23 Nov. 2017, pp. 1-8. EBSCOhost, stacks.tridenttech.edu/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=buh&AN=126965888&site=ehost-live.

24/7 Wall St,. “World’s 20 Largest Countries Without a Wal-Mart.” MarketWatch, MarketWatch, 25 Mar. 2016, www.marketwatch.com/story/worlds-20-largest-countries-without-a-wal-mart-2016-03-25.         

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