SWOT Analysis Example of Walmart

Calendar November 15, 2009 | Posted by lmfoong

 

 

I remember during several of my SWOT Analysis workshop conducted for my formal organizations, I used to mention Walmart as an example of a world class organization. I did a review of Walmart and discovered that it has many strong attributes as a world class organization. Below is my research information:-

About Walmart

Walmart has a customer and members base big enough to have served them more than 200 million times per week at more than 8,159 retail units under 55 different banners in 15 countries. Walmart has sales of $401 billion, and employs more than more than 2.1 million associates worldwide for fiscal year 2009

About Walmart History

Founded in 1962, the company open its first Walmart discount store in Rogers, Ark. on Oct. 31, 1969, the company incorporated as Wal-Mart Stores, Inc., Its shares began trading on OTC markets in 1970 and two years later, it was listed on the New York Stock Exchange. It grew to 276 stores in 11 states by the end of the decade. The company opened its first Sam’s Club membership warehouse in 1983 and opened the first supercenter in 1988 — now the company’s dominant format — featuring a complete grocery in addition to general merchandise. Walmart became an international company in 1991 when it opened its first Sam’s Club near Mexico City. Learn more about our history.

Walmart Mission – Saving people money to help them live better

This is the goal that Sam Walton envisioned when he opened the doors to the first Walmart more than 40 years ago. Today, this mission is more important than ever to our customers and members around the world. Learn more about our purpose.

Ed. Note: Wal-Mart Stores, Inc. (NYSE: WMT) is the legal name of the corporation. The name “Walmart,” expressed as one word and without punctuation, is a trademark of the company and is used analogously to describe the company and its stores. Use the legal name when it is necessary to identify the legal entity, such as when reporting financial results, SEC filings, litigation or governance matters.

The above are some facts about Walmart obtained from its website http://walmartstores.com/AboutUs/. I researched deeper into the company in the areas of SWOT analysis and obtained some key findings pertaining to the four factors of the SWOT. It is tabulated below:-

Walmart Strengths

Walmart Weakness

  1. Customer Service oriented

  2. Bulk purchase for SAM’S Club customers

  3. One stop shopping

  4. Satisfaction guaranteed programs

  5. Purchase from Local merchants as preference

  6. Profit-sharing include stock ownership with employees

  7. Leading information technology in its industries

  8. Employees development

  9. Strong community involvement

  1. No formal mission statement

  2. Membership benefits only for SAM’S Club

  3. Keep poor performing employees

  4. Outdated or old fashioned store policies

  5. Few top management staffs consist of women and minorities

Walmart Opportunities

Walmart Threats

  1. Increasingly consumers want ease of shopping

  2. Internet shopping becoming a new  preference

  3. Dollar value increasing

  4. Similar shopping  patterns worldwide

  5. Retail sales expected to increase

  6. Environment conscious consumers

  7. Elderly population growing

  8. Asian market virtually untapped by retail

  9. European Market untapped by retail

  1. Regulation of Wal-Mart pharmacies

  2. Small towns do not want entry of Walmart

  3. Bad media exposure for Kathie Lee Brand

  4. Variety of competition nationally, regionally and locally

  5. Substitute products more easily because of intense competition

source: http://www.mba-tutorials.com/strategy/96-swot-or-tows-analysis-tows-matrix.html

It is interesting to study the above example of Walmart SWOT Analysis and make a reflection of the company’s direction. Although these SWOT Analysis factors are derived from individual evaluation, it should have direct reflection of what the company is trying to do to its business future as well as to its customer and community

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