Swot Analysis of Wal-Mart in China
Wal-Mart in China
October 31, 2011
The team is playing the role of management consultants in the case study of Wal-Mart stores in China. The team decided that a SWOT analysis was the best approach to the case in the beginning stages of the project. The SWOT analysis was designed as a tool that identifies the strengths, weaknesses, opportunities and threats of an organization. The method of SWOT analysis is to take the information from an environmental analysis and separate it into internal (strengths and weaknesses) and external issues (opportunities and threats). Once this is completed, SWOT analysis determines what may assist the firm in accomplishing its objectives, and what obstacles must be overcome or minimized to achieve desired results.
Wal-Mart has been a leading retailer since Sam Walton first started the company in 1962. Sam Walton’s ability to use strategic thinking for Wal-Mart’s concept, “Every Day Low Prices”, launched the company to immeasurable heights. Although Wal-Mart is one of the world’s largest retailers, the company found it difficult and a long process to enter markets outside of the United States.
SWOT Analysis
Situation being analysed: Wal-Mart in China
Strengths * Financial stability * Experience * Supplier relationships * Every day low prices, Roll Back, and Special Buy * 10 foot rule | Weaknesses * Issues with transportation * US based operating strategy * Chinese government * Huge gaps in consumer needs * Inability to use Network system * Inability to use Supply Chain system * Other Foreign competitors * Workforce * Food needs | Opportunities * Flexible supply chain management * Logistics strategy * Technology levels * Financial matters | Threats * Lack of IT and roadway infrastructure in China * Income disparity in small-town locations * Disadvantages for adhering to government regulations * Local protectionism * Lagging global economy * High unemployment rates
October 31, 2011
The team is playing the role of management consultants in the case study of Wal-Mart stores in China. The team decided that a SWOT analysis was the best approach to the case in the beginning stages of the project. The SWOT analysis was designed as a tool that identifies the strengths, weaknesses, opportunities and threats of an organization. The method of SWOT analysis is to take the information from an environmental analysis and separate it into internal (strengths and weaknesses) and external issues (opportunities and threats). Once this is completed, SWOT analysis determines what may assist the firm in accomplishing its objectives, and what obstacles must be overcome or minimized to achieve desired results.
Wal-Mart has been a leading retailer since Sam Walton first started the company in 1962. Sam Walton’s ability to use strategic thinking for Wal-Mart’s concept, “Every Day Low Prices”, launched the company to immeasurable heights. Although Wal-Mart is one of the world’s largest retailers, the company found it difficult and a long process to enter markets outside of the United States.
SWOT Analysis
Situation being analysed: Wal-Mart in China
Strengths * Financial stability * Experience * Supplier relationships * Every day low prices, Roll Back, and Special Buy * 10 foot rule | Weaknesses * Issues with transportation * US based operating strategy * Chinese government * Huge gaps in consumer needs * Inability to use Network system * Inability to use Supply Chain system * Other Foreign competitors * Workforce * Food needs | Opportunities * Flexible supply chain management * Logistics strategy * Technology levels * Financial matters | Threats * Lack of IT and roadway infrastructure in China * Income disparity in small-town locations * Disadvantages for adhering to government regulations * Local protectionism * Lagging global economy * High unemployment rates
References: Farhoomand, A. (2006). Wal-Mart stores: “every day low prices” in China. Asia Case Research Centre. The University of Hong Kong. Hong Kong, China. National Security Network. (2011). The China economy challenge. Retrieved from http://www.nsnetwork.org/node/1837. Szamosszegi, A., and Kyle, C. (2011). An analysis of State-owned Enterprises and state capitalism in China. U.S.-China Economic and Security Review Commission. Washington, D.C.: Capital Trade. Xinhua. (2010). China’s economy faces new challenges despite steady growth. Retrieved from http://www.chinadaily.com.cn/bizchina/2010-12/15/content_11703700.htm. Xinhua2. (2010). China economy’s biggest challenge is restructuring. Retrieved from http://europe.chinadaily.com.cn/china/2010-12/07/content_11664288.htm.