Walmart swot analysis pdf 2018

BUS/475v10

WK 2 Apply: SWOT Analysis

BUS/475v10

Page 2 of 2

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Wk 2 – Apply: SWOT Analysis
Name:
Selected Organization:
Complete a SWOT analysis from a global perspective, if applicable.

Strengths

Weaknesses

1. Being the largest retailer in the world, with unmatched scale of operations and strong market power over suppliers and competitors

2. Cost leadership strategy

3. The combination of a developed distribution system and a well-managed information system

4. International presence

5. Large merchandise selection in its many physical stores helps it to develop e-commerce channel sales faster and with lower costs

1. Overdependence on sales from the U.S. market

2. Highly criticized employment policies, which result in high employee turnover and poor customer service

3. Negative publicity and poor brand reputation

Opportunities

Threats

1. The e-commerce market is forecast to reach US$4.5 trillion by 2021

2. Online U.S. grocery sales will peak over the next few years

3. Rising popularity of private label goods

4. The usage of mobile grocery apps to order items and to facilitate and enrich the shopping experience will increase significantly over the next few years

5. Rising growth of the China, Brazil, Japan and Chile retail markets

1. Growing risk of data breaches

2. Increasing number of lawsuits, which would further damage brand reputation

3. New laws and regulations concerning food, safety, wage, work benefits and pharmaceutical business

Analysis
Summarize your findings from the SWOT analysis for the CEO of the organization you chose. Address the following in your 2- to 3-page summary:

· How would you match the organization’s strengths to its opportunities?

· How would you convert the organization’s weaknesses into strengths?

· What recommendations do you have to mitigate the impact of the threats?

· What action(s) does the organization need to take to advance their organization goals and/or expand their competitive advantage?

· Why does the organization need to take this/these action(s)?

· How would you match the organization’s strengths to its opportunities?

Walmart currently operates in 6 of the 10 largest e-commerce markets in the world, including China, the U.S., the U.K., Japan, Canada and Brazil. The company could expand its e-commerce operations in other countries as well.

Grocery shoppers are downloading supermarket apps more frequently than ever. The most compelling reasons are product reviews, high-quality images, product search and digital coupons. Walmart’s foreign retail markets are offer great opportunities for growth.

Online groceries sales increased to US$20.5 billion in the U.S. in 2016. In 2017, online grocery sales represented just 3.8% of the total U.S. grocery sales. Food Marketing Institute and Nielsen forecast that online grocery ordering will grow to US$100 billion in 2022.

Walmart could expand grocery delivery to more markets in the U.S.

Walmart offers nearly 40 private label brands in the U.S. and has a great opportunity to expand its private label offerings.

· How would you convert the organization’s weaknesses into strengths?

By addressing the issues gathered most from employees, managers and customers:

There are numerous complaints from Walmart’s employees and managers about:

1. poor working conditions;

2. no break times;

3. very low wages;

4. no overtime pay;

5. no guarantee of enough work hours or a regular schedule;

6. no benefits;

7. wrongful termination.

The company receives criticism for many of its policies and business practices, but the most significant are:

8. foreign product sourcing

9. monopolistic practices

10. supplier treatment

11. low wages

12. working conditions

13. sex discrimination

14. wrongful termination

15. bribery

16. taxes

· What recommendations do you have to mitigate the impact of the threats?

Due to Walmart’s size, geographic expansion and business complexity it is subject to numerous laws and regulations in domestic and foreign markets. The company states that involvement in more lawsuits is one of its key threats. In order to avoid most of lawsuits Walmart’s best strategy is to hire the best lawyers and protect themselves as much as they can.

Walmart collects, stores and protects credit/debit card information from every customer who makes a purchase in its stores and online shops. Increasing web security is essential to Walmart’s defense against identity theft.

In order to keep being the biggest retailer in the world, Walmart must keep with the flow and continue to reinvent the way they sell products to customers, as well to better their assortment and user experience. Amazon is currently the biggest online retailer, not to far behind is Walmart.

Citations
Access the Reference & Citation Generator for citation assistance.

1. Walmart Inc. (2018). Form 10-K for the fiscal year ended January 31, 2018. Available at: http://d18rn0p25nwr6d.cloudfront.net/CIK-0000104169/a25e7acb-aa07-49f3-8c0c-0c69e5a8d372.pdf Accessed January 10, 2019

2. Fortune (2018). Global 500. Available at: http://fortune.com/global500/ Accessed January 10, 2019

3. Carrefour (2018). Consolidated Financial Statements as of December 31, 2017. Available at: http://www.carrefour.com/sites/default/files/comptes_consolides_2017_eng_0.pdf Accessed January 10, 2019

4. Costco Wholesale (2018). Financial Reports. Available at: http://phx.corporate-ir.net/phoenix.zhtml?c=83830&p=irol-irhome Accessed January 10, 2019

5. Tesco PLC (2018). 2017 Annual Report. Available at: https://www.tescoplc.com/media/392373/68336_tesco_ar_digital_interactive_250417.pdf Accessed January 10, 2019

6. Amazon.com, Inc. (2018). Form 10-K for the Fiscal Year Ended December 31, 2017. Available at: http://phx.corporate-ir.net/phoenix.zhtml?c=97664&p=irol-sec Accessed January 10, 2019

7. Forbes (2018). The World’s Most Valuable Brands. Available at: http://www.forbes.com/powerful-brands/list/ Accessed January 10, 2019

8. Market Track and Reuters (2017). Price check. Available at: http://fingfx.thomsonreuters.com/gfx/rngs/WALMART-PRICING/010051T543J/index.html Accessed January 10, 2019

9. Lundberg, A. (2002). Wal-Mart: IT Inside the World's Biggest Company. Available at: http://www.cio.com/article/2440726/it-organization/wal-mart--it-inside-the-world-s-biggest-company.html Accessed January 10, 2019

10. Walmart (2018). History Timeline. Available at: http://corporate.walmart.com/our-story/history/history-timeline Accessed January 10, 2019

11. Alexa.com (2018). The top 500 sites on the web. Available at: http://www.alexa.com/topsites/category/Shopping Accessed January 10, 2019

12. Walmart.com (2018). Quarterly earnings. Available at: http://stock.walmart.com/investors/financial-information/quarterly-results/default.aspx Accessed January 10, 2019