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Wal-Mart: SWOT analysis

Wal-Mart: SWOT analysis

The top rung of Wal-Mart executive body has to do the analysis on these lines to identify the strengths and weaknesses and decide on an appropriate remedial course of action. The following is an enumeration of weaknesses in the supply chain of Wal-Mart. Most of them are a repetition of SWOT analysis done in foregoing, but to facilitate deciding on specific actions, they are briefly listed. 1. Many items going out of stock on one side and piling up of inventory on the other are pointers to ineffective management of inbound logistics.

Long-waiting lines at check-out counters due to insufficient staff will spawn consumers’ aversion to shopping at Wal-Mart. 3. Price-hungry consumers are given low- priced goods but poor ambience and inadequate facilities are clear service gaps which give chance to competitors to build improvements as their unique selling points. This is what Kroger and Target are already doing. 4. The product array and the current positioning of offerings do not appeal to middle income groups. 5. Consumers are bemoaning about the poor attention they receive while picking up or returning goods.

6. Wal-Mart stores wear an old look and in fact dispel customers looking for quality. 7. Human resources in Wal-Mart are by far a disgruntled lot as reflected in the number of lawsuits filed against the company alleging overworking, underpayment, and gender discrimination and so on. 8. Price-focused Wal-Mart rates poorly on process innovation and new product launches. 9. The shortcomings of procurement function are reflected in narrow merchandize variety, soaring inventory levels and so on. Strategies

The company has to expand into newly developing countries where there is a lot of scope for low-price offerings. Its size and bargaining power will give a distinct advantage in these countries. Within US, stores on a different positioning strategy like Super-center and Sam’s Club have to be conceived and launched in step with the expectations of various income groups. It has to be socially responsible to ward off criticism and resentment in respect of employment and remuneration as reflected in the high number of lawsuits by employees and public interest groups.

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