Internal Analysis of Walmart

STRATEGIC MANAGEMENT

Internal Analysis of Wal-Mart

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Wal-Mart SWOT Matrix

Strengths

1 . Wal-Mart is a famous brand

2 . It has one of the largest net sales in the world

3 . It has a strong global presence

4 . It has a strong logistics system

5 . It efficiently uses technology to its advantage

6 . It practices corporate culture of frugality

7 . Everyday Low Prices ' campaign is great for consumers Weaknesses

1 . It has a weak global presence

2 . Reputation of being

anti-union

3 . Everyday Low Wages

4 . Discrimination against women employees

5 . Its growth has slowed down

6 . Lack of effective communication with consumers

7 . Risk of litigation Opportunities

1 . Opportunity for Expansion in the United States

2 . Opportunity for expansion in the other countries

3 . Opportunity for growth SO Strategies

1 . Identify different locations in the United States and set up new stores , super centers to take advantage of its brand name

2 . Identify target locations outside of the United States and set up new stores and super centers to take advantage of the strong brand name WO Strategies

1 . Attempt to balance compliance with laws with entrepreneurial culture

2 . Strong Public Relations campaign that Wal-Mart is not anti-union and that it is pro-employee

3 . develop new commercial model that will improve the company 's interaction with its customers

Threats

1 . Increasing competition

2 . Increased government regulation and scrutiny

3 . Increasing prices of raw

materials

4 . High consumer demand for cheaper goods

4 . Risk of litigation from anti-union policy , and non-compliance with existing labor laws

5 . Growth may slow down in the coming years . ST Strategies

1 . Take advantage of strategic alliances with other retail companies to ensure dominance in the market

2 . Ensure compliance with labor laws to avoid suits

3 . Establish active Public Relations campaign and try to change Wal-Mart 's image of being anti-union and anti-employee WT Strategies

1 . Closing or selling stores which are not performing well in terms of sales

2 . Ensure that there is no overcrowding of Wal-Mart stores within a certain location

3 . Outsource non-core functions

4 . Continue to import products from different countries Strengths

Wal-Mart is a famous and powerful brand that has a reputation for providing its clients value for their money . Since it has been in business for several decades , it has developed loyal clients and customers . It also has one of the largest net sales in the world According to Lee Scott , President and CEO of Wal-Mart Stores Inc , for the fourth quarter , we topped 100 billion in sales , the first time in history that any retailer has reached this milestone in a single quarter ( Wal-Mart Reports Record Fourth Quarter Sales and Earnings , 2008 ,

.2

Also , Wal-Mart has also started to expand its operations globally by putting up stores in other parts of the world . Wal-Mart also has a strong logistics system that enables is to ship and deliver its products from its distribution centers to its stores at a faster rate . This has not...