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Swot Analysis of Walmart

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Swot Analysis of Walmart
Strengths

State-of-the-art information system gives edge to the Wal-mart to control and monitor supplier relations and inventories more competently than its competitors; it ultimately gives Wal-mart a price advantage.

According to the Global 500 and Fortune’s 500 lists, Wal-Mart Stores sustain its top position for two consecutive years. And it makes Wal-mart one of the largest company in the world.

Wal-mart is the world’s largest retailer and also the world’s largest private employer having over 2 million employees.

In the U.S it is the biggest grocery retailer. In 2009, it generated 51 percent of its revenue in the United States from grocery business.

It has more than 8,500 stores in 15 different countries, with 55 different names. It also operates in 50 states of U.S under its own name.

In 2009 Wal-mart launched "Sustainability Index" to make transparent of information to its customers and also assume accountability for its products’ origins.

Performance of Wal-mart is superior and stable in all aspects (financial, organizational and otherwise). For the FY 2011, it achieved a net income of $15.4 billion with a 24.7% GPM.

Wal-mart is developing new business, retailing concepts and rapidly expanding its operations.

Wal-mart is superior at strategic management and it has higher profitability throughout the financial years.

Weaknesses

Wal-mart has experienced a sales drop in United States; sales have dropped for 8 continuous quarters.

Wal-mart had Unsuccessful ventures in South Korea and Germany. In Germany its low price strategy not worked well.

In Germany its corporate culture was viewed negatively among customers and employees. Particularly its "statement of ethics", limited relationships.

In 2006 Wal-mart withdraw its operation from Germany due to losses and sold out stores to the German based company. Alternatively its competitors gaining market share

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