Swot Analysis: SWOT Analysis Of Walmart Corporation

Walmart Corporation

Introduction

Walmart Corporation is a US-based retail company that operates in multiple countries. The multinational retail company focuses on selling groceries as well as general merchandise. The company is arguably the largest retailer in the world and one of the most esteemed corporations globally. Apart from the stated aspects, the Corporation is the third largest public company and employs an enormous number of employees. The company’s main competitors include Target Corporation, Sears Holdings Corporation, Dollar Tree, Inc., and Costco Wholesale Corporation among others. A SWOT analysis of the Walmart Corporation will be conducted to establish the strengths, weaknesses, opportunities, and the threats of the firm.

SWOT

The significant levels of operations are conducted globally in more than 10,000 stores. The large scales of operations allow the company to maintain a high bargaining power on the market and attract most of the consumers. Due to the economies of scale associated with wide operations, the corporation can charge low prices to consumers as compared to its competitors. Low prices attract consumers and supplement to its enormous collective market power (Norman, 2012).

Walmart deals with a broad range of products compared to its rival retailers. Some of the products that it sells on a wide scale include home related items, health and fitness products, entertainment, groceries, among other branded goods. The diversification of products allows it to experience minimal losses. Furthermore, offering a wide range of products is a competitive option that attracts more consumers (Roberts and Berg, 2012).

The corporation operates globally as it does not only depend on the US sales. Studies show that the company has earned more than 140 billion dollars in sales since 2013 in the international operations (Dess, 2012). Foreign markets prove to be a lucrative option as Walmart’s growth is supplemented by the new experience that customers get from the company.

Internalizations strategy has proved to create strong foundations for most corporate participants in the US market. Walmart should take advantage of this opportunity to increase its productivity (Norman, 2012).

10. The employment of low-cost leadership may allow Walmart to continue offering its products at lower prices through flexing the bargaining power.

Threats

1. Increased competition from online competitors restricts the company from reaching a larger market audience. Such competitors include Target, Costco, and Tesco.

2. Resistance from local communities brings difficulties in the expansion of Walmart operations. Local retailers also contribute to resistance as they may go out of business.

3. Escalating commodity prices interfere with the competitive advantage that the company has on the market. The profits margin decrease and competition may shift to differentiating products (Mullins and Walker, 2013).

4. Due to its leading operations, the company faces many imminent problems as most key competitors focus on exposing the flaws of the enterprise.

5. Due to its global operations, Walmart is likely to experience political liabilities as it operates in foreign