Swot Analysis And SWOT Analysis Of Walmart

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SWOT analysis is the combination of Strengths, Weaknesses, Opportunities and Threats. EFE matrix identifies the external opportunities and threats: whereas, the IFE matrix identifies the key internal strengths and weaknesses in the company. Both tools are used to create the SWOT analysis for benchmarking (IFE & EFE Matrices, 2018).

Strengths-Weaknesses-Opportunities-Threats (SWOT) matrix

Internal-External (IE) Matrix

EFE 3.00 - 4.00 I II III 2.00 - 2.99 IV
V VI 1.00 - 1.99 VII VIII IX 4.00 - 3.00 2.99 - 2.00 1.99 - 1.00 IFE

EFE= 2.73
IFE= 3.10
The strategic direction for Walmart is to Grow and Build (section I, II and IV) based on our analysis that resulted in an EFE of 2.73 and IFE of 3.10.
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Based on our analysis, Walmart is positioned in the first quadrant of the grand strategy matrix. The four possible strategies based on its position in the matrix are market development, product development, innovation, and diversification.
Walmart can use market development as an intensive growth strategy to enter new markets nationally and globally. For example, by introducing new stores, Walmart will be successful in market development and gain access to areas that they’ve never had access to before.
Product development is one of Walmart’s intensive strategy, however, they do not invest in the development of new products. On the contrary, their emphasis is more focused on sales and marketing of current products rather than investing in new products (FERGUSON, 2017).
Another possible strategy for Walmart’s products is innovation. By introducing cross-docking worldwide as their warehouse technique, they will reduce storage costs and product delay. Walmart’s unique implementation of this strategy shows that their competitors are not as advanced as they
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Walmart is considered the most diversified company in the world and will continue along this path.

Analysis Templates. (2018, February 04). Retrieved from https://www.smartsheet.com/14-free-swot-analysis-templates.
Boyle, M. (2017, June 12). Wal-Mart Will Punish Its Suppliers for Delivering Early. Retrieved from https://www.bloomberg.com/news/articles/2017-07-12/fined-for-arriving-early-wal-mart-puts-its-suppliers-on-notice.
FERGUSON, E. (2017, March 25). Walmart’s Vision, Mission, Generic & Intensive Strategies. Retrieved from http://panmore.com/walmart-vision-mission-statement-intensive-generic-strategies.
IFE & EFE Matrices. (2018, February 04). Retrieved from https://www.strategicmanagementinsight.com/tools/ife-efe-matrix.html.
Ingram, D. (2018, February 04). Link Between the SWOT Matrix & the Grand Strategy Matrix. Retrieved from http://smallbusiness.chron.com/between-swot-matrix-grand-strategy-matrix-77953.html.
Ways Wal-Mart Stores Inc. Is Using Technology to Improve Its Shopping Experience. (2018, February 04). Retrieved from

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