SWOT Analysis of Walmart

 Before the SWOT analysis of the Walmart I want to describe a brief introduction of the Walmart. In America, Wal-Mart Stores, Inc. is a multinational retail company. Walmart is activated a chain of grocery stores, hypermarkets and discount department stores. In 1962 the company was originated by Sam Walton. In 28 countries Walmart has 11,528 stores. The headquarters of the Walmart in Bentonville, Arkansas U.S. C. Douglas McMillan, is the current CEO of the Walmart. According to 2016 report, Walmart has 2.3 million employees, and they earn 482.130 billion US dollars revenue. The main competitors of the Walmart are Target Corporation, Sears Holdings Corporation, Macy’s Inc., and Kohl’s Corporation, Dollar Tree Inc., Dollar General Corporation, Costco Wholesale Corporation and many other wholesale/retailers companies.

            Walmart Supercenters, recognized as simply Walmart, are with sizes hypermarkets varying from 6,400 - 24,200 square meters, nevertheless averaging about 16,500 square meters. Biggest private employer company is the Walmart. Walmart takes most necessary steps about social responsibilities. Eventually, Walmart is strategies to use a renewable power of energy to meet 100% of its energy needs. Walmart’s operations strategy covers a diversity of advances that are paying attention to the administration the inventory and supply chain, as well as trades performance. The policies by the Walmart public affairs policy necessitate functioning so that they can recognize and implement change administration (Maher, 2007).

The operations of the Walmart are organized and planned into four divisions: Walmart International, Walmart U.S., Global eCommerce and Sam's Club. Walmart agreed to buy Vudu in February 2010, a Silicon Valley start-up that has online movie facility is being put up for a rising number of Blu-ray players and televisions. The strategy and style of the management of the companies are not bad. They also take decisions very well. The Walmart is beneficial for his investors because his investors make more money than they invest in the company. Walmart has a good financial system, big in size and it has a large number of employees (Smithson, 2015).

Strengths

In place for development and human resource management is a focused strategy. Individuals are key to the business of the Walmart, and it invests money and time in retaining and training people. The Walmart has a core competence including its use of IT to help its global logistics system. Wal-Mart has grown considerably over experienced international expansion and previous years. Walmart has developed an employee base and loyal customer. The stores of the Walmart are in the good locations. The employee that gives full-time to Walmart takes good benefits from the Walmart. They attained the loyalty with for their customers with the good customer service, for the products good pricing.

From the suppliers to receive big discounts large volume permits the organization. For the customers, a better opportunity is of keeping a good product. The prices of the Walmart are lower than its competitors. The capabilities of investment of the Walmart during the year of 2014, is equal to 476 billion dollars (Bhasin, 2016).

Weaknesses

            The Walmart have some weaknesses with its strengths such as carry large inventories, not several selections of size for the customers, stopped buying America, mostly employees are the part-time employees, therefore, they do not receive advantages, Walmart with unfair labor rules from other countries sales products, and several communities did not the Walmart for the reason that out of the business they put their little business. Relatively the presence is in the few countries worldwide. Lower prices than competitors in this way they reduced the margin of the profit. The investment decisions are poorly prepared. The company is an object of the government attention and constant media due to many employees.

Opportunities

The opportunities for Walmart are that Walmart necessities to an emphasis on the future and advance their perception.  The Walmart have the opportunities such as: expand to other countries, for incentives and tax break Lobby Federal Government, improve the perception of the local communities, promote green world and promote the laws of the human labor and fair trade. Growth on the Internet due the technology it is easy to promote your business in the online larger markets, so it is the opportunity for Walmart growth on the internet. It is also an opportunity for the Walmart with the large organization partnerships by giving different services such as coffeehouses, travel agencies, and healthcare services.

Threats

            The Walmart have some threats with its Opportunities such as the current economy, employee unions, and tariff taxes and like Costco warehouse retailers. The employees of the Walmart are the more than two million, so the high costs are served on healthcare and wages. The competition is the big threat for Walmart such as Target Corporation, Sears Holdings Corporation, Macy’s Inc., and Kohl’s Corporation, Dollar Tree Inc., Dollar General Corporation, Costco Wholesale Corporation and many other wholesale/retailers companies. It is also a significant threat for the company about poor work conditions, low wages or ethical position. Consumers will make fewer entertainment purchases and electronic. One of the threats for Walmart is in the market of America a possibility of destructive discounting of prices like German-style.

References

Bhasin, H. (2016, August 06). SWOT analysis of Walmart. Retrieved August 11, 2016, from http://www.marketing91.com: http://www.marketing91.com/swot-walmart/

Maher, K. (2007). Wal-Mart Seeks New Flexibility In Worker Shifts. The Wall Street Journal, A1.

Smithson, N. (2015, August 27). Walmart: Operations Management 10 Decisions, Productivity. Retrieved August 11, 2016, from http://panmore.com: http://panmore.com/walmart-operations-management-10-decisions-areas-productivity-case-study-analysis