WAL-MART SWOT Analysis – 2016
Presented here is a SWOT analysis of Walmart.
CEO: C. Douglas McMillon
Number of Employees: 2,300,000
A few words about Wal-Mart before moving on to SWOT:
Walmart has been the target of severe criticism and attacks regarding its supply chain and human resource policies including wage policies in the past. However, there is still enough reason that Walmart can be considered good for America. Its size has always enabled it to provide what the other retailers cannot. The retail giant has efficiently devoted its strengths to the American consumer. While being criticized for depressing wages and for its Bangladeshi suppliers, the retailer has still provided the American consumers the biggest benefit – the lowest prices. Undoubtedly, Walmart means smart retail and its size is a major factor that enables the brand to do the unbelievable things it does.
Being a big brand is not easy and the brands like Walmart have to face significant competition domestically and internationally. Competition poses a major threat to Walmart and especially that from Amazon and Costco. Another major threat is that of a stronger dollar. A stronger dollar internationally means that the profits will be low for Wal-Mart. The recent years saw dollar grow stronger internationally which meant that the profits of the international division of Wal-Mart had to suffer.
Apart from focusing more on E-commerce, Wal-Mart needs to revive its Sam’s Club strategy. There is also a need to attend to other needs like working on improving employee morale to make the brand image stronger. Overall, Walmart has been doing well in terms of low prices. However, it’s time that it made serious attempts to revive the brand image which has been tarnished by its continued lack of attention to the human resource issues.