SWOT Analysis
Wal-Mart
11/03/2013
SWOT Analysis of Company Name
S – Strengths:
The strengths of Wal-Mart are many. First, it is its sales volume. 200 million people visit 10,800 stores weekly worldwide. Its business model of increasing sales by lowering prices works very well for them. Wal-Mart deals directly with producers from local farmers to major product manufactures. This strategy allows them to secure the lowest prices possible for their customers. Wal-Mart’s supply chain is second to none. They are constantly exploring more efficient ways to transport products to customers in order to lower prices. Wal-Mart defiantly has one of the worlds most advanced global supply networks. Variety is key to Wal-Mart. If there is profit in selling a product, Wal-Mart does it. With four hundred and sixty six billion in sales for 2012, Wal-Mart is the world’s leading retailer and generates a huge cash flow. This allows them to expand internationally as well as geographically. The grocery section has grown to account for 51% of sales. Wal-Mart is now the biggest grocer in the country. The pharmacy has grown as well. With four dollar prescriptions, they have changed the prescription drug industry. Wal-Mart is the largest private employer in the world with 2.2 million associates worldwide. Wal-Mart tends to promote from within. Not only does this strategy help retain knowledgeable associates and managers who know Wal-Mart from top to bottom. Even with such strong growth, Wal-Mart still delivers to stock holders. First quarter dividends for 2013 were one dollar and nine cents per share, returning more than 200 million dollars to shareholders. Wal-Mart is a key component in most mutual funds. Wal-Mart’s size allows it to buy in volumes that no one else can. In general, the higher the volume the lower the price per Unit. By sticking to Sam Walton’s original business model of lower prices to
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