5.Sum the weighted scores.
EFE Matrix of Wal-Mart
Opportunities | Weight | Rating | Weighted Score |
Exploit untapped markets of Asia and Europe | 0.25 (25%) | 4 | 1.0 |
Market penetration in USA market | 0.05 (5%) | 3 | 0.15 |
Cost competition | 0.10 (10%) | 3 | 0.30 |
Merger and acquisition | 0.10(10%) | 1 | 0.10 |
Online existence on Internet for shopping | 0.10 (10%) | 3 | 0.30 |
Threats | |||
Strong competition | 0.15 (15%) | 4 | 0.60 |
New entrants in retail industry | 0.05 (5%) | 3 | 0.15 |
Online sales increasing which will results in increasing competition | 0.10 (10%) | 3 | 0.30 |
Economics recession | 0.05 (5%) | 1 | 0.05 |
Political issues | 0.05 (5%) | 1 | 0.05 |
Total Weighted Score | 1.0(100%) | 3.20 |
We can conclude from the result that Wal-Mart is responding to opportunities and threats in a superior way.
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