Swot Analysis for Walmart

1637 WordsJun 27, 20127 Pages
SWOT Analysis for Walmart Fay Stewart MGT/521 February 1, 2012 Audrey Ellison A SWOT analysis looks at the strengths and weaknesses of a company and the opportunities and threats. When used in business it can help a company carve a sustainable niche in the market. A SWOT analysis can be a powerful tool that can assist a company in uncovering opportunities that they can exploit. If a company can comprehend their weaknesses they can then manage and eliminate threats that would otherwise have caught them off guard. By a company looking at themselves and their competitors and using this tool, a company can come up with a strategy that will set them apart from their competitors. Background Sam Walton had a dream of being able to…show more content…
To maintain constant low prices the products must be purchased in bulk and this can harm the revenue. Many time products fail in the market and they can be stuck with large amounts of product that will now move slow and take up space in their distribution centers. Another often mentioned weakness is that they tend to keep more part time employees than they do full time. The part time employees are paid and low wage and are offered no incentives, this leads to large turnover rates. Walmart has had many labor relations issues that include being sued by employees for being gender biased. The company’s top management is held by few women and minorities. They have tried to rectify this problem, but females and minorities getting promoted to manager positions remain issues for the company. The company does not believe or want a labor union; this can give the perception that the company treats employees poorly. The image this may cast can deter a person to apply for employment. Opportunities The opportunities for the SWOT analysis of Walmart end only where their resourcefulness ends. Walmart needs to focus on the future and develop their insight. The people and other businesses need to know and understand that they are not coming into their community to destroy the local businesses. The American consumer is driven by cost and that is now starting to change. People in America notice the bigger picture and Walmart needs to start endorsing optimistic ideals.

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