WalMartTisTanTAmericanTmultinationalTretailTcorporationTthatToperatesTasTdiscountTdepartmentTstores,TheadquarteredTinTBentonville,TArkansas.TWalmartTwasTfoundTbyTSamTWalton.

 

Swot Analysis

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Strength

WalMartTisTaTpowerfulTretailTbrand.TItThasTaTreputationTforTvalueTforTmoney,TconvenienceTandTaTwideTrangeTofTproductsTallTinToneTstore.

Wal-MartThasTgrownTsubstantiallyToverTrecentTyears,TandThasTexperiencedTglobalTexpansion.

 

Weaknesses

·      
WalMartTisTtheTWorld’sTlargestTgroceryTretailerTandTcontrolTofTitsTempire,TdespiteTitsTITTadvantages,TcouldTleaveTitTweakTinTsomeTareasTdueTtoTtheThugeTspanTofTcontrol.

·      
SinceTWal-MartTsellTproductsTacrossTmanyTsectorsT(suchTasTclothing,Tfood,TorTstationary),TitTmayTnotThaveTtheTflexibilityTofTsomeTofTitsTmoreTfocusedTcompetitors.

·      
TheTcompanyTisTglobal,TbutThasThasTaTpresenceTinTrelativelyTfewTcountriesTWorldwide.

 

.Opportunites

ToTtakeTover,TmergeTwith,TorTformTstrategicTalliancesTwithTotherTglobalTretailers,TfocusingTonTspecificTmarketsTsuchTasTEuropeTorTtheTGreaterTChinaTRegion.
TheTstoresTareTcurrentlyTonlyTtradeTinTaTrelativelyTsmallTnumberTofTcountries.TTherefore,TthereTareTtremendousTopportunitiesTforTfutureTbusinessTinTexpandingTconsumerTmarkets,TsuchTasTChinaTandTIndia.
NewTlocationsTandTstoreTtypesTofferTWal-MartTopportunitiesTtoTexploitTmarketTdevelopment.TTheyTdiversifiedTfromTlargeTsuperTcentres,TtoTlocalTandTmall-basedTsites.

 

Threats

BeingTnumberToneTmeansTthatTyouTareTtheTtargetTofTcompetition,TlocallyTandTglobally.
BeingTaTglobalTretailerTmeansTthatTyouTareTexposedTtoTpoliticalTproblemsTinTtheTcountriesTthatTyouToperateTin.
TheTcostTofTproducingTmanyTconsumerTproductsTtendsTtoThaveTfallenTbecauseTofTlowerTmanufacturingTcosts.TManufacturingTcostThaveTfallenTdueTtoToutsourcingTtoTlow-costTregionsTofTtheTWorld.TThisThasTledTtoTpriceTcompetition,TresultingTinTpriceTdeflationTinTsomeTranges.TIntenseTpriceTcompetitionTisTaTthreat.

 

 

WalmartTconsidersTpoliticalTfactorsTinTtheTretailTmarket,TusuallyTpertainingTtoTgovernmentTpolicies.TInTtheTPESTEL/PESTLETanalysisTmodel,TpoliticallyTactiveTinterestTgroupsTareTalsoTsignificant.TTheTfollowingTareTtheTpoliticalTexternalTfactorsTinTWalmart’sTremote/macroTenvironment:

HighTstabilityTofTpoliticsT(opportunity)
PoliticalTsupportTforTglobalizationT(opportunity)
PoliticalTpressureTforThigherTwagesT(threat)

 

WalmartTisTunderTsignificantTpressureTfromTeconomicTchanges.TAnyTsuchTchangeTdirectlyTleadsTtoTchangesTinTtheTcompany’sTrevenues.TBasedTonTtheTPESTEL/PESTLETanalysisTmodel,TtheTfollowingTareTtheTeconomicTexternalTfactorsTinTWalmart’sTremote/macroTenvironment:

StabilityTofTmajorTeconomiesT(opportunity)
ContinuedTgrowthTofTdevelopingTcountriesT(opportunity)
DecreasingTunemploymentTinTtheTUnitedTStatesT(opportunity)

AllTofTtheseTeconomicTfactorsTshowTthatTWalmartTshouldTexploitTopportunitiesTaroundTtheTworld.TEmphasisTshouldTbeTonTtheTfast-growingTeconomiesTofTdevelopingTcountries,TwhichThaveTincreasingTdemandTforTgoodsTfromTretailTfirmsTlikeTWalmart.

 

TheTsocialTorTsocioculturalTfactorsTinTtheTbusinessTenvironmentTofTWalmartTinfluenceTconsumerTperceptionTandTpreferences.TInTtheTPESTEL/PESTLETanalysisTmodel,TtheTfollowingTareTtheTsocialTorTsocioculturalTexternalTfactorsTinTWalmart’sTremote/macroTenvironment:

HealthyTlifestyleTtrendT(opportunity)
CulturalTdiversityTtrendT(opportunity)
UrbanTmigrationT(opportunity)

TheseTsocialTfactorsTpresentTopportunitiesTforTWalmart.TTheTcompanyTcanTincreaseTitsTarrayTofThealthfulTproducts.TWalmartTcanTalsoTincreaseTtheTvarietyTofTitsTproductsTtoTsatisfyTvariousTculturalTpreferences.TMoreover,TtheTcompanyTcanTadjustTitsTstrategiesTtoTexploitTincreasingTconsumerTdemandTinTcitiesTandTsurroundingTareas.

 

 

WalmartTneedsTtoTaddressTtechnologicalTtrends.TInTtheTcontextTofTtheTPESTEL/PESTLETanalysisTmodel,TtechnologiesTaffectTtheTretailTindustry’sTcompetitiveTlandscape.TTheTfollowingTareTtheTtechnologicalTexternalTfactorsTinTWalmart’sTremote/macroTenvironment:

IncreasingTbusinessTautomationT(opportunity)
BusinessTanalyticsTorTbigTdataT(opportunity)
IncreasingTmobileTdeviceTusageTamongTconsumersT(opportunity)

WalmartTcanTincreaseTitsTinvestmentTinTallTthreeTfactors.TInTexploitingTtheTopportunityTinTmobileTdeviceTusageTofTcustomers,TtheTcompanyTmustTboostTitsTonlineTpresence.TOnlineTmarketingTandTonlineTsellingTincreaseTWalmart’sTrevenues.

 

TheTecologicalTorTenvironmentalTfactorsTsignificantTinTWalmart’sTbusinessTpertainTtoTenvironmentalTconservationTconcerns.TEnvironmentalTconservationTisTnowTaTpopularTprinciple.TTheTfollowingTareTtheTecologicalTexternalTfactorsTinTWalmart’sTremote/macroTenvironmentTinTtheTPESTEL/PESTLETanalysisTmodel:

BusinessTsustainabilityTtrendT(opportunity)
EnvironmentallyTfriendlyTproductsTtrendT(opportunity)

ToTattainTbusinessTsustainability,TWalmartTmustTimproveToperationalTefficiency.TTechnologicalTinnovationThelpsTimproveTefficiencyTinTbusiness.TImprovedTpoliciesTandTstandardsTonTproductsTsoldTatTitsTretailTstoresTcanTalsoTstrengthenTWalmartTinTaddressingTtheseTecologicalTfactors.

 

WalmartTisTsubjectTtoTtheTrequirementsTofTlawsTandTregulations.TBasedTonTtheTPESTEL/PESTLETanalysisTmodel,TtheseTexternalTfactorsTusuallyTimposeTlimitsTonTretailTfirms.TTheTfollowingTareTtheTlegalTexternalTfactorsTinTWalmart’sTremote/macroTenvironment:

FoodTsafetyTregulationsT(opportunity)
EmploymentTregulationsT(opportunity)
TaxTlawTreformT(threat)

TaxTreformTisTaTpotentialTthreatTifTitTleadsTtoThigherTtaxTrates.TWalmartTmustTtakeTfoodTsafetyTregulationsTasTanTopportunityTtoTimproveTqualityTstandards.TAlso,TenhancingTWalmart’sThumanTresourceTmanagementTpracticesTcanTexploitTopportunitiesTconcerningTemploymentTregulations.

 

Walmart’sTstakeholdersTinfluenceTtheTstrategicTdirectionTofTtheTcompany.TTheseTstakeholdersTareTtheTpeopleTorTgroupsTthatTtheTbusinessTaffectsTdirectlyTorTindirectly.TThus,TtheyTexertTpressureTonTWalmart’sTbusinessTtoTpushTtheTcompanyTtoTconsiderTtheirTinterests.TWithTitsTlargeTorganizationalTsizeTandTglobalTscopeTofToperations,TWalmartThasTmanyTstakeholders.THowever,TonlyTsomeTstakeholdersThaveTaTsignificantTimpactTonTtheTcompany.TToTunderstandTtheTdynamicsTofTtheTrelationshipTbetweenTstakeholdersTandTtheTbusiness,TmanagersTmustTidentifyTtheseTstakeholdersTandTtheirTinterests.TWalmartTcanTuseTsuchTinformationTtoTguideTdecisionsTtoTachieveTaTsatisfactoryTleadershipTpositionTinTstakeholderTmanagement.TManagerialTdecisionsTatTWalmartTareTpartlyTbasedTonTtheTcompany’sTstakeholders.TThus,TtheTcompanyTandTtheseTstakeholdersTinfluenceTeachTother.

 

Walmart’sTstakeholdersTcanTbeTgroupedTbasedTonTtheirTsharedTinterests.TTheseTstakeholderTgroupsTalsoThaveTdifferentTlevelsTofTpriority,TbasedTonTtheTcompany’sTbeliefsTandTpolicies.TTheTfollowingTareTtheTmainTstakeholderTgroupsTconsideredTinTWalmart’sTcorporateTsocialTresponsibilityTstrategy,TarrangedTaccordingTtoTtheTcompany’sTpriorities:

Investors
Customers
Employees
Suppliers

 

TheTinvestorsTareTtheTstakeholderTgroupTwithTWalmart’sThighestTpriority,TwhileTtheTsuppliersThaveTtheTlowestTpriority.TNonetheless,TallTofTtheseTstakeholderTgroupsTareTconsideredTinTtheTcompany’sTdecision-makingTprocess.TWalmart’sTprioritizationTofTitsTstakeholdersTisTsimilarTtoTthoseTofTmanyTbusinesses,TwithTinvestorsTusuallyTgettingTtheTtopTpriority.

 

InvestorsTareTmainlyTinterestedTinTprofits.TTheyTwantTWalmartTtoThaveTmoreTprofits,TwhichTtranslateTtoThigherTdividendsTorTearningsTperTshare.TInTrelation,TinvestorsTareTalsoTinterestedTinTminimizingTtheToperationalTcostsTofTtheTcompany.TLowerTcostsTusuallyTleadTtoThigherTprofits,TwhichTareTbeneficialTforTWalmart’sTinvestors.

WalmartTprioritizesTinvestorsTinTitsTstrategies.TThisTisToneTofTtheTreasonsTwhyTWalmartTcontinuesTtoTminimizeTcosts,TsuchTasTthroughTtheTminimizationTofTwages.

 

CustomersTareTgenerallyTincludedTasTaTstakeholderTgroupTinTbusiness.TInTWalmart’sTcase,TcustomersTareTinterestedTinTlowTpricesTorTtheTaffordabilityTofTgoods,TasTlongTasTtheseTgoodsThaveTacceptableTquality.TThisTisTespeciallyTtrueTamongTAmericanTconsumers,TwhoTtendTtoTgravitateTtowardTretailersTthatTofferTlowTprices,TsuchTasTWalmart.

WalmartTaddressesTtheTinterestsTofTcustomersTasTstakeholders.TTheTcompanyTmaintainsTitsTcostTleadershipTgenericTstrategy,TwhichTinvolvesTofferingTtheTlowestTpossibleTprices.TInTfact,TtheTcompanyTisTpopularTbecauseTofTitsTlowTprices.TInTthisTregard,TWalmartTisTeffectiveTandTsuccessfulTinTaddressingTtheTinterestsTofTcustomersTasTaTstakeholderTgroup.

 

Walmart’sTemployeesTareTaTsignificantTconsiderationTinTtheTcompany’sTmanagerialTdecision-making.TEmployeesThaveTtwoTmainTinterests:TjobTsecurityTandThigherTwages.TJobTsecurityTpertainsTtoTtheTguaranteeTthatTWalmartTwillTkeepTtheTemployeesTasTpartTofTitsTbusiness.THigherTwagesTareTaTtypicalTinterest,TespeciallyTbecauseTtheTfirmTcontinuesTtoTgiveTlowTwagesTtoTitsTemployees.

WalmartTisTonlyTpartiallyTeffectiveTinTaddressingTtheTinterestsTofTitsTemployeesTasTstakeholders.TTheTcompanyThasTpoliciesTandTprogramsTthatTprovideTaTconsiderableTdegreeTofTjobTsecurity.THowever,TWalmartTmaintainsTitsTpositionTofTminimizingTwages.TAsTaTresult,TtheTfirmTdoesTnotTeffectivelyTaddressTtheTinterestTofTemployeesTwithTregardTtoTwages.

 

 

SuppliersTareTinterestedTinTgettingTmoreTofTtheirTproductsTsoldTatTWalmartTstoresTinTaTprofitableTway.TThisTinterestTinvolvesTnotTjustTtheTsellingTofTtheTsuppliers’Tproducts,TbutTalsoTtheTsellingTofTtheseTproductsTatTacceptablyTprofitableTprices.TAsTbusinesses,TsuppliersTareTstakeholdersTthatTwantTWalmartTtoTsellTtheirTproductsTatThigherTprices.TEvenTaTtinyTincreaseTinTpricesTcanThaveTaTsignificantTbenefitTtoTsuppliers.

SuppliersTareTatTtheTbottomTofTWalmart’sTprioritizationTofTstakeholders.TSuppliersTprovideTtheTgoodsTthatTtheTcompanyTneedsTatTitsTstores.THowever,TasTtheTbiggestTretailerTinTtheTworld,TWalmartThasTtheTbusinessTleverageTtoTinfluenceTsuppliers.TTheTcompanyThasTmoreTpowerTthanTitsTsuppliers.TThus,TsuppliersTgenerallyTdoTnotTgetTwhatTtheyTwant.TForTexample,TWalmartTrequiresTsuppliersTtoTofferTtheirTproductsTatTveryTlowTprices.TUnderstandably,TmostTsuppliersTcomply.TOtherwise,TWalmartTwouldTnotTsellTtheirTproducts.

 

McKinseyT7STofTWal-Mart,TtellsTtheTwayTinTwhichTallTtheTsevenTelementsTofTbusinessTcanTbeTalignedTtoTincreaseTeffectiveness.TMcKinseyT7STframeworkTstressesTtheTpresenceTofTstrongTlinksTbetweenTelementsTinTaTwayTthatTaTchangeTinToneTelementTcausesTchangesTinTothers.TAsTitTisTillustratedTinTaboveTfigure,TsharedTvaluesTareTpositionedTatTtheTcoreTofTWal-MartTMcKinseyT7STframework,TsinceTsharedTvaluesTguideTemployeeTbehaviorTwithTimplicationsTinTtheirTperformance.TAimTofTapplyingTtheTframeworkTintoTWal-MartTthatTtoTknowThowTitTisThelpingTtheTfirmTinTitsToperationalTactivitiesTbyThelpingTitTaccomplishTorganizationalTobjectives.TWal-MartTemployedTHardTElementsTofTtheTmodel:TStrategy,TStructureTandTSystems.THardTS’s:

Strategy:

Wal-MartThasTplannedTtoThaveTanTeverydayTlowTpriceTstrategyTaccordingTtoTitsTbrandTpromise.TThisTstrategyTisTimplementedTbecauseTofTtheTeconomiesTofTscale,TvastTbargainingTpowerTtoTsecureTlowTpricesTfromTtheTsuppliersTandTpayingTlowTwagesTtoTemployees.THowever,TitThasTbeenTcriticizedTforTpayingTlowTwagesTandThadTtoTchangeTtheirTbusinessTstrategy.

 

Structure:

Generally,TWal-MartTorganizationalTstructureThasTbeenTexceedinglyTorderedTbecauseTofThugeTsizeTandTextentTofTbusinessTthatTinvolvesTmoreTthanT11000TstoresTinT27TnationsTandThasTtheTserviceTaboutT260TmillionTclientsTeveryTweekTunderT72Tpennants.TOnTtheTotherThand,TnewTCEOTDougTMcMillianTacquaintedTactivitiesTwithTdelayerTtheTorganizationalTstructure.TInTparticular,TinT2015TWal-MartTdeclaredTthatT”itTwillTdisposeTofTaTlayerTofTmanagementTinsideTitsT4,500TU.S.TstoresTtoTdecreaseTbureaucracy,TenhanceTcustomerTservice,TandTgiveTcuttingTedgeTlaborersTmoreTcontributionTtoThowTtheirTareaTofTtheTstoreTisTrun”.

 

SharedTValue:

Wal-MartTshouldTtakeTcareTofTitsTcorporateTcultureTandTworkTethic.TThisTaspectTisTcenterTtoTdevelopmentTofTallTtheTotherTsixTaspectsTorTsuperordinateTgoal.TTeamTculture,TworkTcultureTshouldTbeTstrengthenedTandTshouldTachieveThighTresults.

 

Skills:

Wal-MartTmainlyThiresTskilledTandTtrainedTstaffTasTtoThandleTtheToperations,TWal-MartTusesTadvancedTtechnologiesTwhichTcanTbeThandledTonlyTbyTtheTtrainedTpersonals.

 

Style:

TheTstyleTofTauthorityTofTWal-MartTisTmajorityTrule.TBusinessTlikeTWal-MartTshouldTfrequentlyTidentifyTandTdevelopTtheTmanagementTandTleadershipTstyleTadoptedTinToperation.TItTshouldTbeTeffectiveTandTshouldTencourageTteam-work.

 

Staff:

TheTinternalTmembersTfromTWal-MartTareTveryTmuchTpreparedTtoTspeakTwithTtheTouterTworld.TTheirTemployeeTandTtheirTassignedTjobTresponsibilitiesTshouldTbeTcompetent.TStaffingTgapsTshouldTbeTtakenTcareTregularlyTforTsmoothTfunctioningTofToperationalTwhenTtheyTUAE.

 

System:

Wal-MartThasTaTwideTrangeTofTsystemTthatTvariesTinTtheTdifferentTlevelsTofTtheTbusinessToperations.

 

 

 

ThisTisTanTanalyticalTtechniqueTusedTtoTevaluateTtheTorganization’sTresourcesTandTcompetitiveTadvantage.TVRIOTdenotesTVTforTvalue,TRTforTrarity,TITforTinimitability,TandTOTforTorganizationTorTorganizationalTsupport.T

 

VRIOTstrategyTofTWal-MartTinTUAE:

Value:

TheTmainTvalueTthatTWal-MartToffersTisTcustomerTsatisfactionTandTdiverseTrangeTofTproductsTatTaTlowerTprice.TDiverseTrangeTofTproductsTcanTbeTtheTmainTvalueTthatTtheyTprovideTasTUAEThasTaTdiverseTrangeTofTcustomersTsoTvarietyTofTproductsTcanTgiveTthemTvalue.

 

Rarity:

Wal-MartTisTtheTonlyTretailToutletTinTUAETwhichTsellsTcarTautoTpartsTinTtheirTstore,TtheirTrarityTisTalsoTseenTinTtheTdiversificationTofTgoodTqualityTofTproductsTthatTexistsTinTtheirTstore.TAlsoTsellingTofTlocalTbrandedTgarmentsTinTtheirTstores.

 

InimitabilityT

Wal-Mart’sTstoreTisTbigTsoTthatTisTanTinimitableTaspectTforTtheirTcompetitorsTasTtheyTwouldTneedTaTlotTofTinvestmentsTtoTgetTthatTbigTstoreTasTWal-Mart.

 

OrganizationalTsupportT–theTuseTofTadvancedTtechnologyTinTeachTofTtheirTactivitiesTfromTrawTmaterialsTtoTdeliveringTgoodsTtoTtheTcustomers.TWal-martTalsoThasTtheTsupportTofTtheTemployeesTinTorderTtoTcreateTsales.

 

 

TheTstrengthTofTtheTPorter’sTValueTChainTAnalysisTisTitsTapproach.TTheTPorter’sTValueTChainTAnalysisTfocusesTonTtheTsystemsTandTactivitiesTwithTcustomersTasTtheTcentralTprincipleTratherTthanTonTdepartmentsTandTaccountingTexpenseTcategories.TThisTsystemTlinksTsystemsTandTactivitiesTtoTeachTotherTandTdemonstratesTwhatTeffectTthisThasTonTcostsTandTprofit.TConsequently,TitT(ValueTChainTAnalysis)TmakesTclearTwhereTtheTsourcesTofTvalueTandTlossTamountsTcanTbeTfoundTinTtheTorganization.TValueTchainTisTanTinternalTprocessTorTactivityTaTcompanyTperformsTtoTdesign,Tmanufacture,TdeliverTandTsupportTitsTproducts.