Walmart Analysis 5 pages excluding the charts (Pay close attention to instructions)

Strength-

As a worldwide company, Wal-Mart’s strengths for global growth includes the following internal forces:

1. Global organizational size

2. A global supply chain

3. Highly efficient supply chain

Hassan, Sistani, & Raju, (2014) explains, the global organizational size gives Wal-Mart economies of scale which is crucial in funding expansion and growth.

With a global supply chain, Wal-Mart can have business resilience for risks that are market specific.

Due to advanced technology in the monitoring and control of physical movements from suppliers to its store.

Weakness-

According to Hassan, Sistani, & Raju, (2014), the weaknesses of the company impose some of the challenges it encounters in addressing the threats indicated in the SWOT analysis.

1. Very thin profit margin

2. A business model that is easier to copy

The weaknesses here outlined directly relate to Wal-Mart’s general strategy in which case is a cost leadership strategy.

The cost leadership strategy targets reduced profit margin which in effect translates to lower selling prices to attract more sales. The Coast leadership approach is a model so easy to copy and thus vulnerable to competitors. The firm lacks significant competitive differentiators and relies on its business size to be the competitive differentiator.

Opportunities-

These are external forces and are mainly about how Wal-Mart can expand as well as improve its business practice.

1. Expanding to developing countries

2. Developing human resource practice

3. Developing quality standards

The developing countries today have a high growth economic condition. The human resource criticism against Wal-Mart to does offer an opportunity to enhance its employment practice. Finally, Wal-Mart can address the consumers concerns through improving the standards of products sold. They include concerns about the quality of low-cost products and health effects.

Threats-

The threats that face Wal-Mart are linked to the changes in consumer perceptions about products as well as changing market prices.

1. Aggressive competition

2. Healthy lifestyle trend

Lately, there is a trend on a healthy way of life. Because Wal-Mart products are non-organic or of a healthy way of life, it faces a threat from consumer choices. Wal-Mart currently does not give priority to healthy products on the shelves. Also, other competitors may use aggressive competition to take a share of Wal-Mart’s market (Hassan, Sistani, & Raju, 2014)