Walmart SWOT Analysis
Here is a detailed SWOT analysis of Walmart covering strengths, weaknesses, opportunities and threats.
SWOT analysis is a management strategy framework used by businesses like Walmart for assessing organization’s Strengths, Weaknesses, Opportunities, and Threats to guide strategic decision-making. Walmart is the leading Multinational retail corporation founded in 1962, and incorporated in 1969, it is headquartered in Bentonville, Arkansas. The company is a family business because it is mainly controlled by the Walton family. By examining these internal and external factors, Walmart can capitalize on advantages, mitigate risks, and chart a more competitive path forward. Walmart company operates across the globe with over 11,500 retail units in 28 countries and as e-retailers in 11 countries. Let us start the SWOT Analysis of Walmart below.
Walmart Strengths
- Walmart is one of the leading retail chains in the world & has a strong global presence
- Walmart attracts consumers as very less prices offered as compared to competitors
- The company has well developed supply chain and multiple supply of raw material from many vendors
- The brand has achieved economies of scale, so cost of production is very less
- Wide network of Walmart stores are present globally and therefore it is accessible to all types of individuals
- Walmart has more than 10,000 stores in more than 20 countries
- Over 2 million people are employed with Walmart
- It has private brand labels, customer loyalty programs & discounts for attracting its loyal customer base
- Excellent website & ecommerce portal enables consumers to shop online
- Walmart has been rewarded by several awards for its customer focus and services offered
- Acquisition of smaller retail chains & investments in ecommerce companies has strengthened its position in the market
- Walmart has diversified in fintech, digital marketing & online food ordering services
Above are the strengths in the SWOT Analysis of Walmart. The strengths of Walmart looks at the key internal factors of its business which gives it competitive advantage in the market and strengthens its position.
Walmart Weaknesses
- Being the biggest retailer brand, Walmart comes under scrutiny for any mishap or policy
- Controversies over its alleged strong-arm tactics of trying to suppress the unionization of its American workforce
These were the weaknesses in the Walmart SWOT Analysis. The weaknesses of a brand are certain aspects of its business which it can improve.
Walmart Opportunities
- Walmart stands in situation where disposable income have been decreased due to global slowdown
- Due to cost leadership is able to kill competitors
- High brand equity gives advantage over competitors to build customer loyalty
- Acquisition of smaller players can consolidate the position of Walmart
- Global reach can be a big option for the company to reach out to more customers
Above we covered the opportunities in Walmart SWOT Analysis. The opportunities for any brand can include prospects of future growth.
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Walmart Threats
- Gaining cost leadership in highly competitive environment
- Growing competition from unorganized sector and ecommerce websites can affect Walmart's business
- Low prices product sometimes get easily substituted by competitors
- High competition from other global brands means reducing market share for Walmart
The threats in the SWOT Analysis of Walmart are as mentioned above. The threats for any business can be external factors which can negatively impact its business.
Hence this concludes the Walmart SWOT analysis.
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About Walmart
The table below gives the brand overview along with its target market, segmentation, positioning & USP
| Walmart Overview | |
|---|---|
| Parent Company |
Walmart Inc |
| Category |
Retail |
| Sector | |
| Tagline/ Slogan |
Save money Live better |
| USP |
Walmart is one of the mot well renowned and global retail giant brand |
| Walmart STP | |
| Segmentation |
People looking for retail stores and supermarkets |
| Target Market |
Middle and upper class individuals |
| Positioning |
Walmart is a retail store which fulfills every need for it customer for a better life |
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