Wal-Mart Swot AnalysisEssay Preview: Wal-Mart Swot AnalysisReport this essayStrengthsWal-Mart is the #1 retailer in the world and was ranked #1 in sales by Fortune magazine.Wal-Mart has grown into a large global corporation by acquiring large retail competitors in international markets.Wal-Mart has brand recognition. It has high value in terms of convenience, product mix, and quality for money, and customer service.Wal-Mart donates large amounts of capital to several charity organizations.Wal-Mart is a leader in channel management, inventory control, distribution and warehousing, and information technology.Wal-Mart has clearly a clearly defined vision and a unified mission.Wal-Mart focuses much energy, time, and money into training, developing, and retaining employees.Given these strengths, Wal-Mart is uniquely positioned to capitalize on its past growth and move into the future with confidence. It is recognized worldwide as a leader in the retail industry, with strong returns on investments. It has a strong base leadership and an eye toward expansion into new markets and product lines.
WeaknessesLabor relations problemsCommunity relations problemsPublic Relations problemsHuge span of controlLack of flexibility due to size of product mix across many sectorsLack of presence in many developed countriesWal-Mart has not fared well with the labor unions and has been accused of wrongdoings including many workplace rights abuses. It often finds itself in trouble with regulators as well. The company has tendencies to put smaller “mom-and-pop” shops out of business because of its sheer size and ability to undersell most, if not all, of its closest competitors. Concerns have been expressed over the use of sweatshops in foreign markets, bringing up accusations of human rights injustices and taking away jobs from American workers.
Employment and Workplace Relations
The following is a list of issues that have affected some of the biggest retailers of the past two decades:
• Wal-Mart’s (WMT), which was founded in 1995 (the year that America’s second best-selling book was published by Random House and Amazon followed by HarperCollins-Crown and Penguin-Verlag), is in short supply by a margin of 4 million business units;
• The largest retailer in the United States has a presence in 35 states, and
• Wal-Mart’s (WMT) membership has declined by 4 percent since 2000;
• Wal-Mart’s (WMT) CEO, Howard “The Wal-Mart Way” Walton, took over the company in 2007, but he has struggled to take over stores on the retail side,
• Wal-Mart has hired a staff of 30 more, and recently announced
• The largest retailer in the United States to be taken over by U.S. multinational corporations, Wal-Mart has a workforce of over 50,000, including 6,000 with a combined population of 11 million.
The list will hopefully shed light on why Wal-Mart is struggling, its competitors, its employees, and their workers. In addition, a few specific details I will add should you spot any or all of these issues.
This is not exhaustive. Many of the same factors have been considered. Also include
• the way people view their work environment,
• how many employees you have,
• your willingness to meet deadlines for each day,
• how many hours worked per week,
and
• which products they buy. I have seen it more than once: Wal-Mart employees get paid far less and workers get paid much less than workers in the U.S.. The same goes for their coworkers.
I will be providing you with tips on how to go about dealing with those issues. Please do try this for yourself (especially those with complex organizational systems – for example, where your company is not so sure what it is good for), and look for advice from a knowledgeable and experienced leader.
I will be glad to answer some of your questions and provide your company with pointers to take action on how to become the better store.
Sincerely,
Peter B. B. Smith Director
Wal-Mart Stores, Inc. All Rights Reserved
Wal-Mart Stores, Inc.
(WMT) Web: www.wmt.com
The Wal-Mart Way
OpportunitiesForm strategic alliances and joint ventures with other global retailersFuture expansion into other countries worldwide.Increase market share by continuing to refine its market research, particularly in foreign markets to better meet the needs of international customers.
Experiment with additional product mixes and alternative marketing development.Branching out into new sectors of retailingFacilitate community involvement