Thus, the weaknesses presented in this SWOT analysis of Walmart reflect business vulnerability to innovative competitors and disruptions in the industry environment, especially in the presence of major e-commerce firms like Amazon. These opportunities are linked to the global economic situation. Also, the human resources situation in the organization presents issues that are actually opportunities for the firm to improve.
Improving these practices can attract higher quality workers relative to other retailers. These factors should compel the company to make some competitive strategic changes. In the context of this SWOT analysis, the threats to Walmart are: Healthy lifestyle trend Aggressive competition Online retailers of various sizes The healthy lifestyle trend is a threat and an opportunity.
It is an opportunity for the company to improve its quality standards. However, this factor is more of a threat because the retail giant currently does not prioritize healthful products in its stores.
This SWOT analysis shows that Walmart must prioritize using its strengths to exploit opportunities in the global retail market. Walmart can improve its HR management standards and product quality standards to improve firm performance. Also, the company must continue expanding its business to exploit economic opportunities in developing markets.
Still, the company must implement strategic changes based on the weaknesses and threats presented in this SWOT analysis, to prepare the business for the long-term developments of a globalized and increasingly online retail market. References Bell, D. Globalization of Retailing. Cross Docking 1. Cross-docking ensures that orders placed at Wal-mart stores are monitored throughout their passage from warehouse to customer.
The system triggers automatic warehouse replenishment and so orders with suppliers. The whole process is customer-led. Inventory Management 1. Wal-mart standardizes space and layout in its stores and warehouses. Warehouse are automatically replenished to optimal levels through continuous cooperation with suppliers. Labor Relations 1. Wal-mart has traditionally been a low salary payer. Basic training is given, but staff turnover at Wal-mart stores is high.
Trade union membership is discouraged. Wal-mart has not always adapted to local market and service expectations. Extensions to Wal-mart's supply chain management retail applications from HP and Oracle, and contracts with the social networking company, Bazaarvoice have not brought anticipated benefits.
Wal-mart's online presence has fallen behind competitors like Amazon and Target. Wal-mart's systems may be victims of their initial success, i. Wal-mart has generally won its many court actions over alleged infringements of labor laws, pricing policies, health insurance and unfair competition, but arrival of a Wal-mart store is still seen as a mixed blessing: increased employment opportunities but competition that many local businesses cannot survive without major restructuring.
Points to Note 1. Supply chain management here more a private industrial network requires changes throughout a company. Wal-mart's obsessive commitment to lowest prices. Continuing profitability of Wal-mart. Another long-term problem that can be attributed to Wal-Mart, is in line with their management approach. This issue clearly speaks of unjust employee treatment and work discrimination, particularly among the members of the management.
While the company has employed useful promotional policies for the benefit of the employees, the lack of fair implementation makes these policies ineffective; moreover, the lack of appropriate managerial approach on the observance of these policies widens the gap between the management and the lower level employees of the company. Indeed, certain actions should have been done to avoid this matter from happening. One problem which is considered is that of Wal-Marts being replicable in the sense that competitors or new players find it easy to imitate Wal-Marts ability to attract suppliers by offering higher cost and value for their products.
This becomes an unintended problem for Wal-Mart because it compromises the reputation of the company of offering quality products because consumers always attached the company in offering lower prices. Being so, WalMarts specialty of offering its customers the lowest price in the market still remains a problem that should be given attention. Its major problem which can be at the same time considered to be a threat, remains to be that of the competitors who are striving hard to reach what Wal-Mart has attained.
Wal-Mart has been considered a veteran and a notorious in the game, running over even those that have been long there before its arrival. These stores end up closing because Wal-Mart incredibly beats them. In fact, to prevent Wal-Mart from monopolizing businesses, small-town locals have turned down proposals of building a Wal-Mart store in their area. In terms of employee and promotion issues, such as those among women and minorities, this has also been observed in Wal-Marts initial operations.
Discrimination for women and minorities for the business leaders have been evident as Sam Walton prefers other individuals for managerial positions. From the cited case and nature of promotional policies at Wal-Mart, the root cause of its problems on granting promotions appear to be the managers lack of ability to make appropriate personnel decisions. As they are the ones interacting with the employees, it is natural that they are given the responsibility to decide who among the employees should be promoted.
However, it is also important that the managers are subjected to proper trainings, particularly how to accomplish performance appraisals of the employees. Clear, specific and definite performance indicators that will make an employee eligible for promotion should also be established initially before the positions are filled in.
Another problem with the previous management of the company is its failure to stick to its own policies. In this regard, there is a need of a strategic change which enables Wal-Mart to sustain their competitive advantage in the market. The management of the company should focus of pricing approach and employment promotion and motivation approach. With this the company may consider the use of expense control.
This would be helpful in ensuring that the company still maintains low price for customers and low operating. It is then recommendable that company develop means that will ensure that its set policies, such as in personnel promotion, are strictly followed by the managers.
All job openings should then be posted by the managers and should be communicated well with the employees. The determinants for promotion should also be relayed to all employees. Moreover, all eligible employees must have an equal chance for the position offered.
Provide a short history of Wal-mart.
Theory has indicated that motivation of employees used to be focused on the provision of financial benefits. Wal-mart could require timesaving devices from supplies, e. Discrimination for women and minorities for the business leaders have been evident as Sam Walton prefers other individuals for managerial positions. In order to facilitate the development of the employees, a superior whom they can share their concerns with should be accessible. Wal-mart Stores, Inc. Harvard Business School.
However, not only the competition is different, several global retailers such as Target, Carrefour, Costco, and Amazon, are working hard to keep efficiency. With this type of strategy, Wal-Mart can increase its sales by means of modifying or enhancing its existing products and services. Through this, the company will have sufficient funds to support other relevant activities in the future. Wal-mart's online presence has fallen behind competitors like Amazon and Target.
It was confronting 6, lawsuits on a variety of issues, including one claiming that it discriminated against female employees.
Valentin, E. The firm can also use its strengths to counteract the threats to its retail business, especially its e-commerce operations. Thus, the weaknesses presented in this SWOT analysis of Walmart reflect business vulnerability to innovative competitors and disruptions in the industry environment, especially in the presence of major e-commerce firms like Amazon.