SWOT Analysis of Wal-Mart (WMT)

Following are the Strengths, Weaknesses, Opportunities and Threats (SWOT) of Wal-Mart.

Strengths

1- Huge and loyal customer base.

2- Strong employees base.

3- Strong financial position.

4- Offer low prices to its customers in retail industry.

5- Holding top position in Fortune 500 companies.

6- Power brand in retail industry.

7- It has been offering wide range of products.

8- Wal Mart core competencies includes information technology, supply chain and inventory.

9- Strong operations in USA, UK and China.

10- Large network of retail outlets.

11- Domestic presence in USA is very strong.

12- Huge market share in USA.

Weaknesses

1- Complaints have been received regarding the product quality of Wal-Mart.

2- Improve HR policies for employee retention.

3- Product recall

4- Simple retail outlet structure.

5- Revenues are declining.

6- In past, Wal-mart was criticized for pressurizing employee Union.

7- Reducing suppliers profit margin.

Opportunities

1- Expansion in existing domestic and international markets.

[large]2- Market development by entering into countries; India, Pakistan and Bangladesh.

3- Offering products online for sale could increase revenues.

4- Opt for outsourcing or partnership model  for remote marketing.

5- Expand brand portfolio

6- Contribute to corporate social responsibility.

7- Improve perception of people via different programs.

8- Partnership or acquisition of supplier(s) would further reduce the cost of the products.

9- Promote labor laws and fair trade.

Threats

1- Economic slow down in USA reduces Wal-Mart revenues.

2- Government regulation in different countries.

3- Security concerns mainly due to terrorism.

4- Employee Unions.

5- it has been facing strong competition from Carrefour, Target and Costco.

6- Frequent changes in Taxes and currency exchange rates.