How Walmart Grew
One of the realistic methods to analyze the performance of a business is to impartially examine all the important functions. This starts by analytically examining their strengths, weaknesses, opportunities and threats, which is also called the SWOT analysis. How Walmart managed to establish itself as one of the leading organizations in the US. Its SWOT analysis will reveal the success story.
Strengths
SWOT analysis on Walmart starts with the strengths of the business. Wal-Mart is a dominant retail product. It has a standing for value, simplicity and a broad product variety all under one roof. Wal-Mart has developed considerably over the years, and has gone through the process of worldwide growth, like acquiring of the ASDA, a UK based retailer. The business has proficiency that includes the extensive utilization of information technology to sustain its global logistic structure. Wal-Mart has the vision to appreciate the performance of specific products over the world. IT has also supported the procurement system of the organization. A focused strategy was conducted for the efficient employment of its human resources, to incorporate an excellent system of management and professional growth. Persons are secret of its success, as the organization has invested immensely in their training requirements. There are numerous products of Walmart, like Walmart photo center, which are considered excellent master pieces of the organization, and a great source of revenue. Focus is required to be maintained on such products, to keep the competitors away.
Weaknesses
Wal-Mart is the biggest global grocery retailer. In spite of the strength in information technology, there are some weak areas that need focus. Since Wal-Mart has the business of selling numerous categories of products, like food, clothes, it may be lacking in focus towards its key competitors. The organization has potential to expand its activities in numerous other countries of the world.
Opportunities
Walmart has great potential to acquire, merge, and create global coalition with other large retailers, concentrating on precise markets, like China and Europe. The company is presently trading in a comparatively less number of global regions, and has great opportunities for business in other customer markets. Different regions and kinds of products have offered Walmart great opportunities to capture the markets.
Threats
Being great implies that there are numerous threats from the competitors, and concerted efforts are required to encounter their strategies to capture the market share. Walmart may be experiencing political issues from the distant countries. Furthermore, the production cost has decreased due to large scale economic outsourcing to other global areas. This has caused cost competition, causing reduction of prices in some products, causing severe competition that needs to be carefully managed by Walmart. Another great threat to SWOT analysis on Walmart is a trade war that is in the process of being developed in a serious threat, between China and U.S. This situation may lead to rising prices and taxes charges that can seriously effect the organization.