Swot Analysis of Wal Mart

Here is an example of a swot analysis of Wal Mart. This example is provided to show how simple it is to make a SWOT. 

When you actually take a look at Wal Mart you can see the thought behind the idea of the store and see that the founder had a brilliant concept. Sale the necessities that people need and use everyday. Make these accessible and affordable for the middle class of America.

One of the best ways to look at a business is to objectively take a look at the entire operation. This begins by looking at their strengths, weaknesses, opportunities and threats or to conduct a SWOT analysis of Wal Mart.

Swot Analysis of Wal Mart Strengths

When you begin to look a SWOT Analysis, you should look at what they do right and what their strengths are.

The strength of Wal Mart is that they have developed a loyal customer and employee base. This base is extremely loyal. They achieved this loyalty with good customer service for their customers, great pricing for the products they sell and by moving to areas of the country that are often ignored by other retailers. As for their employees they offer flexible hours, competitive wages, health insurance and discounts for their purchases.

• Loyal customers
• Great pricing
• Good locations
• Good benefits for full time employees

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Weaknesses

There is however weaknesses found in the Wal Mart SWOT. For example, in order to keep their pricing down they need to buy in large quantities. This need can lead to their inventory being a little unreliable. This means that you may not always be able to find certain things that you normally buy all the time or perhaps they will have it but you will need to buy a much larger size then you actually need. Another often mentioned weakness is that they tend to keep more part time employees than they do full time.

• Carry large inventories
• Stopped buying America
• Not many size selections for the consumer
• Staff is mostly part time employees that do not receive benefits
• Many communities dislike Wal Mart because they put their small business out of business
• Sales products from other countries with unfair labor laws
  

Opportunities

The opportunities for the SWOT analysis of Wal Mart end only where their resourcefulness ends. Wal Mart needs to focus on the future and improve thier perception. America consumer is driven by cost however that is now starting to change. People in America perceive the larger picture and Wal Mart needs to start promoting positive ideals.

• Expand to other countries
• Improve local communities perception
• Lobby Federal Government for tax breaks and incentives
• Promote fair trade and human labor laws
• Promote green world
  

Threats

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One of the biggest growing threats to swot analysis of Wal Mart is Washington D.C. where currently there is a brewing trade war between the U.S. and China that could lead to higher prices and tit-for-tat tariff charges that could negatively impact their bottom line.

There is also a push to get Wal Mart employees to unionize which will have a ripple effect all the way through the company, costing more in labor and not getting anything in return for it.

• Current economy
• Tariff taxes
• Employee unions
• Warehouse retailers like Costco