Walmart SWOT Analysis [Update 2022] ❤️

Walmart SWOT Analysis 2022

Walmart SWOT Analysis: In this modern era, people’s lifestyle is updating day by day, and due to that, their demands are increasing extremely. With this updating lifestyle, the businesses are also expanding more and more.

On the other hand, if the customers are not satisfied with the company then, unfortunately, it may wind up, which is a big peril for the business. Hence, the SWOT analysis is a very important part of insight into this current market.

The Walmart SWOT Analysis 2022 elaborates on the company’s Internal Factors (Strengths, Weaknesses),  and External Factors (Opportunities, and Threats).

It will give a visual overview of the company’s policy, situation, and potential. In addition, If anyone wants to begin a business with Walmart inc., then a SWOT Analysis of Walmart is the main source.

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An Overview of Walmart:

Walmart ( Formerly: Wal-Mart Stores, Inc.) is a popular world’s largest retail corporation in the United States, as well as it is the world’s largest company by revenue. It operates a chain of hypermarkets, discount department stores, and grocery stores.

Company Name
Walmart Inc.
Logo Walmart Logo
Industry Type Retail Public Corporation
Founded July 2, 1962 (in Rogers, Arkansas)
Founder Sam Walton
Headquarters
Bentonville, Arkansas, U.S.
Number of locations
11,443 stores worldwide (January 31, 2021)
Area served
Worldwide
CEO
Doug McMillon (President, CEO)
Products
  • Electronics
  • Movies, music, and games
  • Home and furniture
  • Home improvement
  • Clothing
  • Footwear
  • Jewelry
  • Toys
  • Garden supplies
  • Health and beauty
  • Pet supplies
  • Sporting goods and fitness
  • Auto
  • Photofinishing
  • Craft and party supplies
  • Grocery
Revenue  US$559.2 billion (in 2021)
Annual Net income
 US$14.88 billion (in 2020)
Owner Walton family (50.85%)
Number of employees
  • 2.2 million, Worldwide (2020)
  • 1.5 million, U.S. (2017)
  • 700,000, International
Main Competitors Alibaba, Amazon, Costco, Dollar General, Dollar Tree, Kohl’s, Macy’s, Sears Holdings, Target, and many other retailers/wholesale companies.

Walmart Milestones/Development Timeline

1962 Sam Walton opens his first Walmart store in Rogers Arkansas
1967 Walmart has 24 stores with US$ 12.7 Million in sales
1969 Walmart Stores, Inc.
1970 Walmart went public
1971 Bentonville, Arkansas was the first location of a distribution center.
1972 Walmart is registered on the New York Stock Exchange
1979 Walmart Foundation established
1980 Walmart’s annual sales reach US$ 1Billion
1988 Washington’s Walmart Supercentre opens
1991 Walmart and Cifra join forces
1996 Walmart opens in China
1988 Walmart acquires Asda in the UK
2002 Japan: Walmart
2009 After acquiring a large stake in D&S S.A., Walmart enters Chile
2010 Bharti Walmart, a joint venture, opens its first store in India
2011 After the purchase of Massmart Holdings Limited’s 51% share, Walmart South Africa has been established
2013 Walmart acquires Bharti Walmart
2015 Walmart acquires Yihaodian, China
2017 Walmart buys ModCloth and Bonobos from ShoeBuy.com
2018 Flipkart India and Eloquii acquisitions, Bare Necessities, Art.com

Walmart SWOT Analysis

SWOT analysis can be a strategy-oriented design framework that is used by corporate executives to ensure a successful state of affairs review of the business. 

The Walmart SWOT framework could help them understand the strategic elements within their organization, such as the strength and weaknesses of their organization as well as external strategic elements like threats and opportunities.

Walmart Inc. maintains its formidable presence within the industry solely through checking the SWOT analysis regularly and eventually. So Walmart SWOT analysis is likely to be a great asset for the company.

The Strengths of Walmart

❤️ One of the major strengths of Walmart is its brand name which is well-known around the globe.

❤️ Walmart efficiently maintains its resources including information methods, supply chain systems, delivery facilities, knowledge, and other skills. They track down their inventory, sales, and everything technologically.

❤️ Because of, its low product prices, it became a household name. Walmart is able to purchase its products in large quantities so it gives a big discount. Customers pay less at Walmart than at other stores.

❤️ Employees are the key assets of Walmart. It hugely invests its time and money in developing and managing its employees.

❤️ It can hire people from any country it wants. So, by hiring skilled people and people from other cultures, it can set up a new retail shop in a new place easily.

❤️ Walmart has abroad technological advancements, which makes its work much easier than its competitors.

The Weaknesses of Walmart

❤️ Due to naming bigger discount Store. If the price goes up, people will start leaving the products of Wal-Mart. That’s why the company cannot offer a bigger price and make more profit. 

❤️ Several times, Walmart has received criticisms and claims regarding its employees. Low wages, inadequate healthcare, and poor working conditions are a few of the issues that can be affected the brand name.

❤️ Many high-end specialty retailers have the upper hand in bringing quality exploring buyers who have a low sensation to rate.

❤️ Due to large expansion in the world and a massive spread of control, Walmart could leave weak in some areas.

❤️ A gender discrimination lawsuit was filed against Walmart in 2007. As per this lawsuit, Female employees are discriminated against in regard to promotions and pay scales.

❤️ The company doesn’t own any specific competitive edge over its rivals except for its huge business size that’s why Walmart’s business model can be easily copied.

The Opportunities of Walmart

❤️ Walmart can concentrate on expanding its business to the markets which are not yet been tried such as Latin America and China.

❤️ So far, Walmart has extremely poor physical stores, but they could improve with their online business. By opening the store, the offerings, and shipping, they could spread their wings worldwide, similar to Amazon.

❤️ In a deep Walmart case study, Walmart can promote its grocery products to compete with other grocery retailers in the market. It will eventually increase their brand value.

❤️ They could offer more healthy-food alternatives in their grocery section like the health-conscious bandwagon which will be unique from other competitors.

❤️ There’s also the opportunity to tie up with bigger companies to branch into other services such as health insurance, coffee stores, and travel agencies.

The Threats of Walmart

❤️ The competition is increasing day by day. There are many competitors of Walmart like Target, its direct competitor, which provides similar products. Similarly, Alibaba, Amazon, Costco, Dollar General, and many others.

❤️ This is also a threat to Political and legal affairs that can always hinder the company to operate in some countries.

❤️ The healthy lifestyle trend is a threat because the retail giant currently does not prioritize healthful products in its stores. 

❤️ Customers have complained many times about some technical issues with Walmart’s website. However, Amazon is known for its fast, effective, and organized website for customers.

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Recommendations

These are the recommendations that are provided that will help Walmart could improve its weak spots and enhance its market position in the future:

  1. Enhancing the company’s HR management practices and resolving employees’ concerns. A strong HR system can protect Walmart from being subject to critiques of its workforce.
  2. Expanding business into international markets — Walmart must look for opportunities in emerging markets to improve its position and increase its market share.
  3. It will bring new advancements to the global supply chain and distribution network It will strengthen its huge retail empire.
  4. Addressing the controversy as soon as is feasible. Walmart must improve its online sales website and only include authentic products to stop further public criticism.
  5. The company is upgrading its online e-commerce websites. Walmart has to address technical issues that hinder its websites in their development and provide satisfaction to the customers.
  6. Promoting marketing and promotional activities can help the business to improve its image and brand image, and also attract new customers.
  7. Walmart must also play an active role in the field of environmentally sustainable methods to establish an image that is positive within the business.

Limitations of SWOT Analysis for Walmart

While SWOT analysis is a popular tool for strategic planning, SWOT analysis is extensively used to plan strategic strategies however, it does have its fair share of drawbacks.

  • Certain abilities or aspects of an organization can be both strengths and weaknesses at the same time. This is among the most important limitations that SWOT analysis has. For instance, changing environmental regulations could be an opportunity and a threat to the company. However, as well as an opportunity in the sense that it can allow the company to compete on the same level or even gain an advantage over competitors if it can develop its products quicker than competitors.
  • SWOT is not a method of determining how to gain competitive advantages It is not a strategy to gain competitive advantage, therefore it should not be considered a solution in and of itself.
  • The matrix serves as an idea to begin discussions on how suggested strategies can be implemented. It offered an evaluation window, but it did not provide an implementation plan based on the strategic effectiveness of Walmart
  • It is a static analysis and analysis of the current conditions with only a few potential modifications. As the environment, circumstances as well as threats, and strategies evolve, the dynamics of the competitive landscape will not be apparent through a single matrix.
  • SWOT analysis could make a firm overemphasize one external or internal element in formulating strategies. There are interrelations between the important external and internal aspects that SWOT doesn’t reveal, which could be crucial in determining strategies.

Weighted SWOT Analysis of Walmart

Due to the previously stated shortcomings of the SWOT analysis/ matrix, the corporate management determined to give weightage to every weakness and strength of the business. 

They also consider the likeliness of events that will occur in the near future and what the effect can be on the performance of the company.

This is referred to as the Weighted SWOT Analysis. It’s superior to basic SWOT analysis as using weighted SWOT analysis Walmart managers are able to focus on the most crucial elements and ignore the less crucial ones. 

It also eliminates the problem of the long list, which causes organizations to make a lengthy list but not address any of the elements that are considered to be important.

References

FAQ Walmart SWOT analysis

What is a SWOT analysis for Walmart?

The Walmart SWOT report will reveal how the largest firm in the world utilizes its competitive advantages to lead and grow successfully within the retail industry. It highlights the major strengths as well as weaknesses, opportunities, and threats that impact the business the most.

What are Walmart’s weaknesses?

Poor wages, inadequate health care, and bad work conditions are just a few issues that have been publicly criticized. Wide span of control The company’s size is extremely large and its huge span of control may make Walmart struggle in some areas.

What are Walmart’s biggest threats?

The fierce concurrence is a significant risk for Walmart Inc. there are numerous retailers like Amazon, Kroger, Tesco, Costco, Alibaba, and numerous others who are employing different strategies for marketing to outdo the competition and improve the image of their brand and increase their customer base.

What are some challenges Walmart faces?

Walmart has a number of problems to face, which include intense competition, a negative image, limitations in joint ventures and business acquisitions as well as strict cultural standards in the international market (Kneer 25). There is fierce competition from other stores which have adopted a low-price strategy.

Who is Walmart’s biggest competitor?

Here are the most significant competitors of Walmart in the US.
  • The Kroger Company:
  • Costco:
  • Home Depot:
  • Walgreens Boots Alliance:
  • Target:
  • Amazon:
  • Lowe’s:
  • Best Buy:

What makes Walmart so successful?

One of the major reasons Walmart always outperformed its competitors is its employees. The employees are the primary source of innovative customer experiences and are, affected by the culture of the company. Sam was aware that employees at Walmart serve as the link between the retailer and customers.

Conclusion

Lastly, Thank you for reading my post. I am sure that you have enjoyed this article regarded on SWOT of Walmart which will surely help out to develop your business.

The main prospect of the SWOT Analysis of Walmart Inc. is using its strengths to utilize prospects in the global retail market.

The company’s weaknesses and threats are secondary priorities. Besides, the company should be continually expanding to exploit economic opportunities in the developing markets.

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