Essay about Wal-Mart Formal Case Analysis-Swot

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Wal-Mart Formal Case analysis June 2007 SWOT Analysis The SWOT Analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a business, in order to reach its objectives. Wal-Mart objective is to always offer low prices and to become the number one largest retailer in the world. Strengths refer to the attributes of the organization that help achieving its objectives. First of all, Wal-Mart is one of the largest retailers in the world. Its size it allows Wal-Mart to control suppliers, to control competitors and to open stores wherever they want. Their international presence contributes to its power. Having the second largest net sales in the world, this company is …show more content…

As well, the world’s economy is not at its best moments, people become more preoccupied about price, and use this as the number one shopping criteria. On top, Wal-Mart has the ability to diversify their products and service offerings. They could add travel agencies, kindergartens, cleaning services, tax services and much more. Another good opportunity is to improve in the areas they were criticized before, such as employee benefits and medical coverage, employees’ wages and even environmental issues as pollution. Wal-Mart could also focus on its online sales, as it is becoming the new shopping trend. Many opportunities await this retailer in the future. Threats refer to the external conditions which could damage to the business’s performance. A major threat to Wal-Mart’s expansion is its negligence to adapt to local markets. This will automatically lead to negative response from the populations and low sales. They might believe that their culture can apply everywhere, but failures as Germany proves them wrong. The slowing economy decreases people’s incremental income decreasing the number of sales. Moreover, locally and globally Wal-Mart can become the target of competitors. Mergers and acquisitions among opponents can pose a serious problem to its expansion. For example if Target and K-mart merge they might become the world’s largest retailer. Also, RFID could be a threat to

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