2. SWOT Analysis
S W
T
O
• Wide Scale of operations
• Cost leadership
• Competent Information
systems
• International Presence
• Economies of Scale
Strengths
• Negative Publicity
• Minimal Differentiation
• Labor Issues
• High Employee Turnover
Weaknesses
• E-commerce growth
• Expansion to emerging
markets
• Favorable shopping trends
• Increased acceptance of local
brands
Opportunities
• Increased competition
• Regulation
• Rising product prices
• Resistance in new markets
Threats
SWOT
Analysis
3. External Factors Weight Rating Weighted Score
Opportunities
International expansion 0.08 3 0.24
Growing online retail market 0.10 4 0.40
Technological advancements 0.09 5 0.45
Changing customer preferences 0.07 4 0.28
Threats
Rife Competition 0.10 3 0.16
Regulatory Bottlenecks 0.09 3 0.30
Economic Downturns 0.08 2 0.21
Fluctuating Currency rates 0.07 3 0.27
TOTAL 1.0 2.21
External Factor Evaluation (EFE) Matrix
External Factor evaluation looks into key external factors in Walmart's environment. The
EFE Matrix assigns a weight to each external Factor depending on its impact on the
company and the perceived importance. Calculation of the ratings of each factor is done
by multiplying the weights to achieve the total weighted score.
5. Walmart VRIO Analysis
• A VRIO Analysis of Walmart looks into the company’s internal resources and
capabilities. The major aspects represented in the acronym include Value, Rarity,
Organization, and Imitability
• From the VRIO table, it can be summarized that Walmart has immense capabilities
and resources that make it stand out from its competitors
• Walmart’s strong points are its strong brand reputation, robust IT infrastructure,
good inventory management, and its wide scale of operations. Each of these
elements are of a high value, are not easily imitable by other companies, and are
well developed
7. Porter’s Five Forces
VERY LOW
Threat of New Entrants
Medium-to-Low
Bargaining Power of Buyers
Low
Threat of Substitutes.
Very Low
Bargaining Power of Suppliers
Medium
Industry Rivalry
A Porter's five forces analysis of Walmart shows the company's
competitive landscape and looks into the different factors
affecting its competition. it examines the position of the
company based on aspects like threats of substitutes, threat of
new entrants, the bargaining power of suppliers, competitive
rivalry, and The bargaining power of buyers
8. Walmart’s Porter’s Five Forces Analysis
• Threat of new entrants- there is a lot rate of new entrants since there are both economical
and technological barriers like the required capital to enter the market, setting up a resilient
supply chain, and the technology required
• Threat of substitutes- Walmart has a low to moderate threat of substitutes because of its
strong online and offline presence. Walmart also provides cheaper rates for better services
• Competitive rivalry- there is moderate to high competitive rivalry. The company faces some
competition but utilizes its economies of scale to maintain a competitive advantage
• Bargaining power of suppliers- Walmart uses a vendor managed inventory and is a hub for
multiple supply chains. The company fulfills its order demand and suppliers have a low
bargaining power since no vendor would like to lose business with Walmart
• Customers have a low bargaining power since Walmart offers goods at the cheapest cost and
even provides home delivery and online orders
9. Walmart BCG Matrix
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Question Marks
• George
• Marketside
• Great Value pet food
Stars
• Walmart Grocery
• Sam’s Club
• Walmart Health
Dogs
• Mainstays
• Ozark Tail
• Equate
• Dogs
• Walmart Laundry Detergent
• Walmart Plastic Cutlery
10. EBIT/EPS ANALYSIS
EBIT- EPS analysis Looks into the financial
leverage; Walmart’s different financing
methods at different levels, and their
impact on earnings
This analysis shows the company's
earnings before income and taxes and is
a measure of the company's value and its
operating efficiency
Walmart’s Profit analysis shows that it
can satisfy its longer-term debt and
investment
