Walmart Swot Analysis

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3.4 SWOT Walmart’s supply chain management has proved to be very effective, which has led the company to success. This case study analyzes the company’s strengths and weaknesses, and factors in what threats they face, as well as what opportunities that they can exploit. 3.4.1 Strengths Walmart is a very powerful retail brand that represents affordability. Their number one strength is their efficient supply chain network. They offer “Everyday Low Prices” and have a consistent level of inventory. Walmart achieves this through their bargaining power with their suppliers. These suppliers offer “just-in-time delivery” of merchandise to Walmart locations. These strengths help maintain Walmart’s market share and maintain customer loyalty.…show more content…
Walmart needs to continually develop effective strategies to withstand the threats of substitutes and new entrants. And, strategies that address the bargaining power of buyers and suppliers. 3.5.1 Competitive Rivalry The following external factors are the most significant for Walmart to consider regarding competition: There is a large number of organization in the retail market with a large variety of retail products and services they provide with high aggressiveness they saw the efficiency of what Walmart is doing and they copied their supply chain strategy. Thus, Walmart experiences the strong force of these external factors in competitive rivalry in the retail industry environment. 3.5.2 Bargaining Power of Buyers Walmart faces a low bargaining power of buyer because the large population of buyers are individuals that buys small purchases that makes it difficult for them (buyers) to impose significant pressure on retail firms. So, in effect, the bargaining power of buyers is weak in influencing Walmart and other retail firms. 3.5.3 Bargaining Power of Suppliers Walmart’s suppliers bargaining power is low. Since they used the Vendor Managed Inventory which meant their suppliers managed their own inventory at Walmart at the price Walmart wants which helps secure the lowest prices from its suppliers to sustain its everyday low price. Thus, the bargaining

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