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Wal-Mart: SWOT analysis Essay

Wal-Mart: SWOT analysis

Wal-Mart is one of world’s public corporation, located in America. It has many large discount stores. The stores were founded in 1962, in 1969 was incorporated, and in 1972, it was listed in New York stock exchange. Wal- Mart deals with grocery, consumables, and toy. Due to it’s many stores in United States, Wal-Mart is recognized world wide as the largest private employer. Wal-Mart incorporation operates in many states with different title. The incorporation has been successful South America and in China, in North America, there are results are mixed, but in Germany, the venture was totally unsuccessful.

Initially, Wal-mart had about thirty eight stores, a thousand and five hundred employees, and about $44. 2 sales. It had a rapid growth, such that within twenty five years of operation, about one thousand, one hundred and ninety eight stores had been developed, with about two thousand associates, and an increase in sales to $15. 9 billion. All its operating units are linked by a satellite network which has two way voice as well as data transmission, and a one way video communication. Apart from communication, the network facilitates tracking of sales and inventory.

The rapid growth of Wal-mart has subsequent effects on small

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towns businesses, and at the same time enhanced many developments such as railroad, and a pace which it set for other small and retail business in states where the stores are located. Currently the Wal-mart operates in a number of formats such as food and drug stores, supercenters, cash and carry stores, small markets, apparel stores, restaurants, soft discount stores and membership warehouse clubs (Matthew & Graham, 2006, 18-20).

SWOT Analysis Strength Wal-Mart has grown rapidly, and has expanded globally. Currently Wal-mart is a powerful retail brand. It operates in many states, countries, with many associates wide variety of goods and services in the brands. The company operates in Brazil, Argentina, Canada, UK, Puerto Rico, South America, China, Japan and Mexico. The company has reputation for convenience, value for money and ensures that every store contain varieties of products.

The company has human resource, management and development strategies. The strategies enhances investing on people where by the company trains people to work in the company, ensures the employees are retained to advance their experiences in operation, and to reduce the costs associated with recruiting and training new employees. Through the strategy, the company gets the best from the experience employees whose experience broaden for the benefit of the company with time through out their retention.

Wal- Mart supports its international logistics system through information technology. This has made Wal-Mart to develop core competence. Use of satellite network helps the company to get appropriate information pertaining every product, service and the units. The information give the knowledge on performance of products in every store, and country wide. With this, the company makes appropriate corrections to improve the performance of the product,and facilitates in efficient procurement (Bianco et al. 2007, pp. 46)

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