WAL MART SWOT ANAYLSIS 2015

2. Since the first Walmart store opened in 1962 in Rogers,
Arkansas, we've been dedicated to making a difference in the
lives of our customers. Our business is the result of Sam
Walton's visionary leadership, along with generations of
associates focused on helping customers and communities
save money and live better.
This rich heritage defines who we are and what we do today.

3. "We save people money so they can live
better."

4. In addition to this mission statement, the
company looks to its founder, Sam Walton for
a company "purpose":
“If we work together, we’ll lower the cost of
living for everyone…we’ll give the world an
opportunity to see what it’s like to save and
have a better life.”

5. A SWOT
analysis (alternatively
SWOT matrix) is a
structured planning
method used to evaluate
the strengths,
weaknesses,
opportunities and
threats involved in a
project or in a business
venture.

6. Name Wal-Mart Stores, Inc.
Logo
Industries served Retail (Discount department stores and warehouse stores)
Geographic areas
served
Worldwide (11,453 stores in 27 countries)
Headquarters Bentonville, Arkansas, U.S.
Current CEO C. Douglas McMillon
Revenue
$485.651 billion (2015) 2% increase over $476.294 billion
(2014)
Profit
$16.182 billion (2015) 1.7% increase over $15.918 billion
(2014)
Employees 2.2 million (2015)
Main Competitors
Costco Wholesale Corporation, Dollar General Corporation,
Dollar Tree, Inc., Kohl's Corporation, Macy's Inc, Sears
Holdings Corporation, Target Corporation. and many other
retailers/wholesale companies.
Company Background :

7. Wal-Mart Carrefour Costco Tesco
Revenue (USD) $485.651
billion
~100 billion $110.212
billion
~$110 billion
Locations 11,453 10,105 671 7,305
Countries
served
27 34 9 12
Employees 2.2 million 364,969 195,000 505,544
Retail space
(square feet)
1.1 billion - 95 million 41 million

8. Strengths Weaknesses
1.Scale of operations
2.Competence in information systems
3.Wide range of products
4.Cost leadership strategy
5.International operations
1.Labor related lawsuits
2.High employee turnover
3.Little differentiation
4.Negative publicity
Opportunities Threats
1.Retail market growth in emerging
markets
2.Rising acceptance of own label
products
3.Trend toward healthy eating
4.Online shopping growth
1.Increasing competition from brick
and mortar and online competitors
2.Increasing resistance from local
communities
3.Rising commodity prices

9. Strengths:
1.Scale of operations. Walmart is the largest retailer in the world with more
than $400 billion in revenue and 10,130 stores. It makes Walmart the giant that
no other retailer can match. Due to such large scale of operations, the corporate
can exercise strong buyer power on suppliers to reduce the prices. It can also
achieve higher economies of scale than competitors because of its size. Higher
economies of scale results in lower prices that are passed to consumers.
2.Competence in information systems. The corporate achieves significant cost
savings because of its extensive information systems that tracks orders,
inventory levels, sales and other related information in real time. All this
information can be instantly accessed, analyzed and decisions made at each
store. Effective management of supply chain and logistics is one of the most
important factors for Walmart success.
3.Wide range of products. Walmart can offer wider range of products than any
other retailer. It sells grocery, entertainment, health and wellness, apparel and
home related products among many other categories and offers both branded
and own label goods. Wide range of products attracts more customers to
Walmart stores.

10. Strengths:
4.Cost leadership strategy. This strategy has helped Walmart to become the
low cost leader in the retail market. This strategy requires selling products ant
the lowest price possible and providing a no frill services to achieve higher
economies of scale and attract masses of consumers and that is exactly what
the company is doing. It sells products at much lower prices than competitors
do, builds warehouse style superstores that contain extensive range of
products but doesn’t offer much additional benefits or services. All of this
result in cost reductions and lower prices for consumers.
5.International operations. Walmart does not rely on sales from US stores only
as its competitors do. It has earned $135 billion in sales in 2013 from its
international operations, which grew at a much faster rate than sales in the
home market. Foreign markets open up new opportunities for Walmart’s
growth and provide new experience for the company as it operates quite
differently abroad than in the home market.

11. Weaknesses :
1.Labor related lawsuits. Walmart faces labor related lawsuits every year, which
costs millions of dollars for the company. It is criticized for poor work conditions,
low wages, unpaid overtime work and female discrimination. In addition to
litigation costs, corporate’s reputation has been damaged and fewer skilled
workers are willing to work for it.
2.High employee turnover. The business suffers from high employee turnover
that increases firm’s costs, as it has to train new employees more often. The
main reason for high employee turnover is low skilled, poorly paid jobs.
3.Little differentiation. Walmart has no differentiation compared to its
competitors, which might hurt the company in the future if commodity prices or
average consumer income would increase. In this case, low cost leadership
strategy wouldn’t be as effective as it currently is and Walmart’s main
competitive advantage would erode.
4.Negative publicity. The company is often criticized for its questionable
practices such as bribery of authorities or poor work conditions. Negative
publicity damages corporate’s reputation.

12. Opportunities :
1.Retail market growth in emerging markets. Retail markets grew by at least 5% on
average in emerging markets in the last year, opening huge opportunities for
Walmart’s revenue growth. The business currently operates in Brazil, Mexico, China
and India markets. Walmart should increase its presence in these markets to sustain
future growth.
2.Rising acceptance of own label products. The sales of private label products have
increased by more than 40% over the last 10 years. This reveals increasing consumer
acceptance of supermarket chain products compared to national brand products.
Walmart has an opportunity to increase the number of private label products sold at
its stores and earn higher profit margins.
3.Trend toward healthy eating. The current trend of eating healthier food has resulted
in higher demand for grocery products. Walmart has an opportunity to expand its
grocery stores to earn more income from this trend.
4.Online shopping growth. Online retail sector grew by 4.7% in the US in 2011,
reaching $197 billion. Walmart being the biggest offline retailer has huge
opportunities to expand its presence in online retail market. The company can offer
convenience to pick up the goods ordered online in its more than 10,000 stores and
can offer even lower prices online than at the store. As a result, Walmart can reach
more customers and increase its revenue.

13. Threats:
1.Increasing competition from brick and mortar and online
competitors. Competitors like Target, Costco, Amazon and Tesco (in UK) are
putting huge efforts to eliminate price differences that Walmart enjoys. Except
the lower prices, Walmart doesn’t differ from other low cost retailers and will
experience increased competition from them in the future.
2.Increasing resistance from local communities. Walmart superstores have a
negative impact on local retailers and communities. Some of the local retailers
are usually forced to close off when Walmart superstore opens in the area.
This affects not only the retailers but their families and the community as a
whole.
3.Rising commodity product prices. Rising commodity prices squeeze
Walmart’s profit margins and erode its competitive advantage. As prices go
up, the cost difference between the retailers decreases and competition shifts
from price to product and service differentiation.

14. THANKS
FOR
YOUR
TIME