Categories: SWOT Analysis

SWOT Analysis of Wal-Mart

  1. Wal-Mart’s industry is in the free trade zone. Since the government enters into free trade agreements with different countries this may result in new markets for Wal-Mart.
  2. Since the world is moving very fast, time has become a valuable resource for everyone. Consumers are becoming busy and they want to save their time by shopping at one place.
  3. Fast moving pace of today’s high-technology world has increased customers preference for internet shopping and they want friendly site designs and delivery.
  4. Asian markets are the biggest opportunities for the retail industry because they do not have strong one roof operation.
  5. Recovery of global economy is a very good opportunity for the Wal-Mart because it will increase demand for the consumer products.

 

Threats

 

  1. Wal-Mart is being criticized for its effect on local communities, mainly small towns with many stores. Various researches conducted on Wal-Mart show that small stores can lost their 50% of the business after Wal-Mart openings. 
  2. As Wal-Mart has strong presence in many countries therefore,  it has to face regulations of their respective governments as well.
  3. One of the important threat for the Wal-Mart is that the industry is not following consumer savor.
  4. Internet or technological advancement can be a big threat to the retail industry because such advancements promotes online sales due to which competition will increase.
  5. The sale of consumer products is directly related to the income of consumers. Due to the various economic recessions, the income of consumers is affected from time to time which ultimately impact the sales of consumer products.

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