Case study on swot analysis of walmart

SWOT Analysis Week 2

SWOT Analysis

Jonathan Matos

University of Phoenix

BUS/475

11/5/2019

This paper will describe what state Wal-Mart is currently in, what its strengths weaknesses opportunities and threats are. What ideas I think might collaborate in the future with Wal-Mart if it expands on the online point of view, and it will also discuss recommendations from the SWOT analysis.

For this assignment I will be using Wal-Mart. A little background about Walmart. The first store opened in 1962, in Arkansas. In 1991, Walmart opened in Mexico going international and since then have expanded to 28 other countries.

The first thing that I will discuss is the strengths of the company. The strength that I would like to point out is their convenience to meet your needs. Most Stores are open 24/7 and there are many locations that you could visit at any time. Meeting peoples need in the demographic that may work late hours. They have most of the things that you would need for everyday life. Their convenience doesn’t stop at their stores though. If there is something you want that they don’t have in store but, their website has it available, you can have it shipped to the store at no cost to you. Walmart using technology to bring products to you and sometimes same day pick up is available. Another strength they have is that they are some a large company with many stores everywhere. This allows them to reach a lot more consumers within the market and their target market within their demographic for the area.

Although they have lots of strengths, they also have weaknesses. One weakness is due to their low prices it leaves little room for profit. Due to this they must cut cost where they can so, they are able to provide lower prices than their competitors (Economic). This leads the company into their next weakness which is they employ mostly part time employees who don’t receive any benefits. So, although they could provide job security, they may not be able to provide the work you need to survive (Economic). Something else that is a downfall to Walmart success is the lack of success of small businesses when Walmart is present in the community. Most people will shop at Walmart rather than a local shop owned by their neighbor just because Walmart has the better price. Small businesses can’t compete with big retailers like Walmart.

SWOT Analysis for Target

SWOT

Falling incomes this means less people with buying power

The growth of dollar stores example Dollar Tree dollar general

On-line retailers such as Amazon.

Threats

Opportunities

Walmart has only recently made an aggressive push into the online retail

Amazon makes it vulnerable to economic downturns

Walmart is a well-established retail store,

Wal-Mart has a good relationship with its guests

Walmart creates an enjoyable shopping experience for its guests

Low prices beat out most competitors

Weaknesses

Strengths

New sales channels such as small neighborhood stores

Same day delivery these could help drive up sales volume

Walmart has strong expertise in retailing in popular urban areas where the younger generation prefer to shop like Brooklyn

How Walmart Might grow if it was to Expand e-commerce presence

Walmart currently have stores in all parts of the world which may be doing just fine however online stores such as Amazon have really put a dent in Walmart’s future. I would want to see Walmart move aggressive in the internet sales in order to get back on track.

If it would expand on the e-commerce, it would still have to worry about established online retailers. Based on the SWOT analysis I would recommend that Walmart look at its weaknesses they need to have a website that is more user friendly where products are easier to find, and checkout is easier. They should also look at the opportunities they can build some more accessible online options and then the threats by finding ways to compete with Amazon.

Conclusion

With the everyday changing needs of the customer it is a wonder that most stores can survive locally in this case how can they survive globally? Walmart first needs to stay focused and up to date with the latest technology and its competitors, for it to become one of the premier like Amazon. They need to consider having a better retail website. This can help thrive to be the best place to shop physically as well as online and become even better for the guests that already shop there.

Reference:

SMITHSON, N. (2015, August 13). Walmart SWOT Analysis & Recommendations - Panmore Institute. Retrieved May 16, 2016, from http://panmore.com/walmart-swot-analysis-recommendations-case-study

Swot analysis of Wal Mart. (n.d.). Retrieved May 16, 2016, from http://www.quality-assurance-solutions.com/swot-analysis-of-wal-mart.html