SWOT of Canadian Operations of Wal-Mart: Supply Chain Innovations to Fight Competition in Canada

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SWOT of Canadian Operations of Wal-Mart –Supply chain innovations to fight competition in Canada

Supply chain innovations should ensure on-shelf availability at retail outlets, improving collaboration between vendors and retailers, translating supply chain costs to product pricing, lean inventory and real time replenishment. Wal-Mart should ensure that process differentiation to determine the right method of moving products with varying demand characteristics (Akehurst, C., & Alexander, N. (1995)
SWOT Analysis of Canadian operations with particular focus on Supply Chain

Strengths

1. Strong distribution process- warehouse, assembly and direct-to-store based on demand variability and margin.
2. Leverage economies of scale to lower vendor
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Customer centric innovations and Technology enabled supply chain might be the game changing strategy.
3. High annual turnover rates with weak presence in tier 1 cities with higher discretionary consumer spend is hurting revenue realization.
Opportunities

1. Strong investment in Information technology to streamline information flows and product flows along supply chain(RFID, Retail-Link system)
2. Leverage vendor relationships to optimize supply chain performance(CPFR-collaborative planning forecasting and replenishment)
3. Consignment inventory-transferring ownership from vendor to improve inventory turn-over
4. Increase share of food & grocery market and converting stores to supercenter format.
5. Wal-Mart should invest in its internet channel excellence including e-commerce front end and back end fulfillment.
6. Wal-Mart should project a community friendly, environment caring and employee welfare seeking brand image to combat. Emerging threats. Investment in sustainability initiatives like solar energy and recycling could be possible opportunities.

Threats

1. Strong threat from Amazon.com as change in consumer purchase habits shows a trend towards home-shopping.
2. Increasing competition from Scrambled merchandising from Canadian tire & dollar store chains. Increasing competition is putting a pressure on profit margins as well.
3. Low pricing eventually results in loss of customer loyalty as pricing to bottom is a risky business strategy.
4.

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