Categories: SWOT Analysis

TOWS Analysis of Wal-Mart

&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad1" id&equals;"quads-ad1" style&equals;"float&colon;left&semi;margin&colon;0px 0px 0px 0&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;<p align&equals;"justify">TWOS is the acronym for threats&comma;weakness&comma;opportunities and strengths both refers to the same thing&period; SWOT or TWOS analysis use by the firm to develop strategies or we can say possible set of strategies&period; Strategist prefer SWOT or TWOS because it gives alternative set of strategies which help the firm to choose the strategies suit the firm in terms of available resources&period;<&sol;p>&NewLine;<h3>Strengths<&sol;h3>&NewLine;<p align&equals;"justify">1- Strong customer loyalty<&sol;p>&NewLine;<p align&equals;"justify">2- A well recognized brand all over the world&period;<&sol;p>&NewLine;<p align&equals;"justify">3- Affordable pricing<&sol;p>&NewLine;<p align&equals;"justify">4- Offers customer oriented products<&sol;p>&NewLine;<p align&equals;"justify">5- Diversified&sol;differentiated&&num;160&semi; products<&sol;p>&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad2" id&equals;"quads-ad2" style&equals;"float&colon;none&semi;margin&colon;0px 0 0px 0&semi;text-align&colon;center&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;&NewLine;<p align&equals;"justify">6- Wal-Mart shares its stock and profits with its employees&period;<&sol;p>&NewLine;<p align&equals;"justify">7- Customers who are members of SAM’s club are able to buy in bulk&period;<&sol;p>&NewLine;<p align&equals;"justify">8- Offers Satisfaction Guaranteed Program to create goodwill amongst its customers&period; <&sol;p>&NewLine;<h3>Weaknesses<&sol;h3>&NewLine;<p align&equals;"justify">1- Wal-Mart has no formal mission statement&period;<&sol;p>&NewLine;<p align&equals;"justify">2- Wal-Mart&OpenCurlyQuote;s has a vast product line but may lack some flexibility to compete against its rivals in some sectors&period;<&sol;p>&NewLine;<p align&equals;"justify">3- No reaction towards the incompetent employees&period;&lbrack;sky&rsqb;<&sol;p>&NewLine;<p align&equals;"justify">4- Store policies are obsolete&period;<&sol;p>&NewLine;<p align&equals;"justify">5- Lack of female employees’ empowerment&period;<&sol;p>&NewLine;<p align&equals;"justify">6- Wal-Mart faces many difficulties in countries like India and China&period; <&sol;p>&NewLine;<h3>Opportunities<&sol;h3>&NewLine;<p align&equals;"justify">1- In the economic slowdown many consumers prefer to bargain&comma; this will benefit Wal-Mart to further increase its sales&period;<&sol;p>&NewLine;<p align&equals;"justify">2- As many retail businesses are on decline due to drop off in disposable incomes&period; Therefore&comma;Wal-Mart is able to increase its customer base by providing bargaining to the potential customers&period;<&sol;p>&NewLine;<p align&equals;"justify">3- Online shopping has become very common&period;<&sol;p>&NewLine;<p align&equals;"justify">4- European and Asian market are still unexploited by retailers&period;<&sol;p>&NewLine;<p align&equals;"justify">5- Consumer’s buying patterns are similar worldwide&period;<&sol;p>&NewLine;<p align&equals;"justify">6- The retail sales are expected to increase in the long term&period;<&sol;p>&NewLine;<p align&equals;"justify">7- Strong distribution network&period; <&sol;p>&NewLine;<h3>Threats<&sol;h3>&NewLine;<p align&equals;"justify">1- Strong competitions amongst its rivals&period;<&sol;p>&NewLine;<p align&equals;"justify">2- As a global retailer&comma; Wal-Mart has to face political instability in the country which they operate in&period;<&sol;p>&NewLine;<p align&equals;"justify">3- Intense price competition can become a threat to the company as the manufacturing cost becomes low because of outsourcing from other regions of the world and therefore has lead to price deflation&period; <&sol;p>&NewLine;<h3>Strengths&sol;Opportunities &lpar;SO Strategies&rpar;&colon; <&sol;h3>&NewLine;<p align&equals;"justify">1- Being a well recognized brand known as retail market leader&comma; Wal-Mart can take advantage of this major strength by allowing customers to go for bargain and offers discounts as well while other retailers don’t do this so often&period; &lpar;S1&comma;O1&rpar;<&sol;p>&NewLine;<p align&equals;"justify">2- During economic slowdown most of the people disposable income gets reduced&period; At this time&comma; Wal-Mart is able to gain&sol;retain customer’s loyalty by offering products at affordable prices&period; &lpar;S3&comma; O2&rpar;&period;<&sol;p>&NewLine;<p align&equals;"justify">3- As the trend of online shopping has grown more over the years&comma; Wal-Mart can keep its customer up to date and allows them to order online by offering customer oriented products&period; &lpar;S4&comma;O3&rpar; <&sol;p>&NewLine;<h3>Weaknesses&sol;Opportunities &lpar;WO Strategies&rpar;&colon; <&sol;h3>&NewLine;<p align&equals;"justify">1- Wal-Mart has to set a clear mission statement as there is lot of potential increase in retail business in the future and this is one of the reasons&comma; Walmart could not achieve profits in other countries like India&period; &lpar;W1&comma;O6&rpar;<&sol;p>&NewLine;<p align&equals;"justify">2- Since customer buying patterns are similar across the world&comma; Wal-Mart can update its customers about its new products and policies on internet as well&period; &lpar;W4&comma;O3&rpar;<&sol;p>&NewLine;<p align&equals;"justify">3- European and Asian markets are still unexposed to retail shopping&semi; Wal-Mart can make use of this advantage by market expansion in other locations of the world by offering products at cheap prices specifically at the time of economic instability&period; &lpar;W6&comma;O4&rpar;<&sol;p>&NewLine;<p align&equals;"justify">4- Wal-Mart can also widen its distribution worldwide by exploiting countries unlike its domestic market&period; &lpar;W6&comma;O7&rpar;<&sol;p>&NewLine;<p align&equals;"justify">5- Wal-Mart should provide benefits to its employees who will boost up the morale of the employees and leads towards the sustainable growth of the organization&period; &lpar;W5&comma;O6&rpar; <&sol;p>&NewLine;<h3>Strengths&sol;Threats &lpar;ST Strategies&rpar;&colon; <&sol;h3>&NewLine;<p align&equals;"justify">1- Wal-Mart has a strong brand image&semi; it can face a massive competition against its rivals&period; This can be avoidable by offering differentiated products at affordable prices &lpar;S1&comma; T1&rpar; &lpar;S5&comma; T1&rpar;&period;<&sol;p>&NewLine;<p align&equals;"justify">2- Wal-Mart has been able to develop a brand value that is able to sustain itself even at the time of economic&sol;political instability in the country which they are operating by introducing differentiated products and satisfied guaranteed programs to create goodwill with the customers &lpar;S5&comma;T2&rpar; &lpar;S8&comma;T2&rpar;&period; <&sol;p>&NewLine;<h3>Weaknesses&sol;Threats &lpar;WT Strategies&rpar;&colon;<&sol;h3>&NewLine;<p align&equals;"justify">1- To avoid any tough competition&comma; Wal-Mart should focus on existing product line or to remain above the competition by investing more on advertising campaign to keep its competitors always on pressure &lpar;W2&comma; T1&rpar;&period; <&sol;p>&NewLine;<p align&equals;"justify">2- Make&&num;160&semi; a thorough study of the foreign market and adapt according to their culture&&num;160&semi; to establish itself in the Asian&sol;European market&period;&lpar;W6&comma;T2&rpar; <&sol;p>&NewLine;<h3>Reference&colon;<&sol;h3>&NewLine;<p align&equals;"justify">myessayexamples&&num;160&semi; &comma; TOWS analysis of Wal-Mart &lt&semi;http&colon;&sol;&sol;myessayexamples&period;blogspot&period;com&sol;2012&sol;05&sol;tows-analysis-walmart&lowbar;06&period;html&gt&semi; &comma;&&num;160&semi; &lt&semi;May6&comma;2012&gt&semi; &period; &NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad3" id&equals;"quads-ad3" style&equals;"float&colon;none&semi;margin&colon;0px&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;&NewLine;

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