The Strengths of Walmart in SWOT Analysis

Walmart Storefront
Walmart is the Largest Retailer in the World if you compare with others in the same industry; and if you observe closely, you will see many strengths the Walmart built around its businesses. It started its physical operations as a discount retailer in Rogers, locating in Ark. If we see the number of shops, now 

Walmart has 11,348 retail units in 30 countries all over the world. In the USA, it currently has near to 5000 location and Walmart international number of locations consisting of 5,993. Walmart also is operating 10 eCommerce popular websites in 10 countries. Walmart employs 2.3 million people around the globe whereas near to 1.5 million are employed in America only.

The Strengths of Walmart in SWOT Analysis


Excellent Low Pricing Strategy of Walmart: the Supermarkets has two pricing strategies if you observer, that are discounts and the brilliant promotional pricing strategy. These strategic offers of temporary discounts on selected items allow them to achieve strengths. This is one of the key strengths of Walmart that is the strongest ability to maintain low pricing.


Strong Global Presence: In the past time, Walmart Company had tremendously grown to the largest retailer with a huge number of satisfied customer around the world. Walmart starts its International business or journey in 1992. Currently, it’s operating in 30 countries outside of America. Walmart acquired many retailers which have helped them to become one of the largest supermarkets in the United Kingdom. Walmart also acquired 77% shares of an Indian company named Flipkart for near to $16 billion. It will provide an excellent opportunity for the company to enhance International business segments.

Unique Supply Chain Management: Walmart is one of the leading global retailers. Its warehouse club operator includes near to 120,000 suppliers if considered the whole world. Walmart is utilizing advanced information technology to make a forecast of the future demand, to track it and to monitor the product's movements from suppliers to stores. Its supply chain strategy allowed the company to achieve many sustainable competitive advantages around the world. For example, inventory carrying cost, lower product cost, and providing low prices for the customers. There is not a single doubt that the supply chain is the key strength in the SWOT Analysis of Walmart.

Wal Mart always had a strong distribution system and it’s generally known as cross-docking. They always are continuously delivering goods to different places within a day. It surely great advantages over others. However, it gives a faster response to market demands in all locations they are operating but on a low level of an inventory storage system. But this unique system has allowed them to decrease its costs of sale. 

Research and development: all of the big companies in the world have strong research and development teams. Wal Mart is not different too. Wal-Mart’s continuous innovation helps it to secure a leading position in a leading retail industry as it is turning out new patents technology regularly. Innovation is always high at Wal-Mart Company about the offered products and services which give the ultimate profit. This in return allows creating a very strong strength. 

Every company runs for building strengths to be successful and to have sustainable growth in their industries. Walmart did it perfectly. The study discussed the best strengths of Wal-Mart Corporation as internal strategic analysis. These strengths can be used the part of the SWOT analysis of Walmart. 


Comments

Post a Comment