Walmart SWOT Analysis 2022 – Walmart Inc.

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Walmart SWOT Analysis, Walmart Everybody’s favorite big-box retailer, Walmart is the world’s largest retailer, selling everything from food items as well as musical instruments. More than the 270 million customers go to Walmart to buy their goods each week and many also purchase online through the websites of Walmart. SWOT Analysis Of Walmart can teach us a lot about Walmart Inc.

Walmart began as a small discount shop that opened in 1962 in Arkansas. Over the past the past 50 years, it’s developed into the world’s biggest retailer, with more than 11200 locations across the 27 nations and over a hundred websites (e-commerce) across the 10 nations. The CEO at present at Walmart is Doug McMillon..

Read the article and receive an in-depth description of this retailer’s giant via an analysis of SWOT for Walmart.

Walmart At A Glance – Walmart SWOT Analysis 

Walmart SWOT Analysis logo

Company: Walmart
Founders: Sam Walton
Year of establishment: July 2, 1962
CEO: Doug McMillion
Headquarters: Bentonville, Arkansas, United States
Employees (Dec 2020): 23,00,000
Ticker Symbol: WMT
Type: Public
Annual Revenue (Dec 2020): USD$424.40 Billion
Profit net income (Dec 2020): USD$15 Billion

Products & Services: Retail | Money Services | Health Services | Pet Services | Product Services | Registry Services | Auto Services | Business Services

Company Website: Walmart.com | Save Money. Live Better

Walmart Competitors 

Competitors: Target | Amazon | JCPenney | Best Buy | Kroger | KMart | Giant Eagle | Ikea | Alibaba | Home Depot | Lowe | 7 Eleven | Walgreens | CVS

Walmart SWOT Analysis – SWOT Analysis Of Walmart

SWOT Analysis Of Walmart analyzes the brand based on its strengths weak points, weaknesses, opportunities, and threats. With Walmart SWOT Analysis it is clear that the advantages and disadvantages are internal factors, while threats and opportunities are external elements. Here we are going to talk about Walmart SWOT Analysis. Below Is The Detailed SWOT Analysis Of Walmart.

Walmart’s Strengths – Walmart SWOT Analysis 

Walmart SWOT Analysis

1. Brand recognition with millions of people coming to Walmart every day, it’s the most well-known brand of retail worldwide. There are more than sixty million items on offer at Walmart. Walmart website. Based on Forbes Global 2000, Walmart is ranked 19th worldwide and is the most prestigious publicly traded company by sales, with an impressive $524.40 Billion in revenues for FY2020.

2. Global expansion Walmart recently acquired ASDA, a UK retailer with its headquarters in London, as well as Indian online shopping huge Flipkart. In addition, it has formed an alliance with India’s largest retail store Bharti. These international expansions have proved to be a huge achievement for the business.

3. Global presence as of the month of May, 2020 Walmart operates 11,484 shops and club that operate across 27 countries, under three different business divisions: Walmart U.S., Walmart International, and Sam’s Club. Walmart’s international stores are operated under a variety of names and has allowed the company to increase its international presence and boost sales. [2]

4. Everyday Low Prices strategy –Walmart relies on the economies of scale, which is why it can provide low prices. It has fixed prices for thousands of items. It’s therefore one of the least expensive stores anywhere in the world.

5. Supply chain logistics and supply chain system for the world logistics and distribution systems comprise the main strengths of Walmart. It makes use of Information Technology (IT) to effectively monitor the performance of each product sold in every retail store in every country.

6. Human Resource Management: Employees are the most valuable asset of Walmart. It invests hugely in its time and money into training and managing its employees. One percent of America’s population works at Walmart according to Business Insider.

7. Resource management that is effective: Walmart effectively manages its resources, including supply chain networks distribution facilities, information and other abilities. It is a top-performing operation across all places.

8. Strong market control over: competitors and suppliers Strong market power over competitors and suppliers massive size of its organization and its global reach has resulted in Walmart sufficient to have market power over competitors and suppliers.

9. Effective implementation of e-commerce: In the first and second quarters of 2020 the sales of Walmart grew to a record-setting record. Most of the time, the business relied heavily on sales in stores. Recent events have slowed the number of shoppers in stores and forced Walmart to improve its e-commerce channel that led to an growth in sales online. The strong online sales, combined with sales in stores and boosted Walmart’s total sales to record levels. [2]

Walmart’s Weaknesses – Walmart SWOT Analysis 

1. Workplace treatment and conditions: Walmart has faced criticisms and lawsuits a number of times about its employees. Insufficient wages, insufficient healthcare and working conditions are just a few of the problems that have been widely criticized.

2. Wide range of influence: Its extremely large size and huge control span could make Walmart vulnerable in certain areas.

3. Profit margins are thin: Walmart concentrates on cost leadership strategies. It leads to thin profit margins for the business.

4. Discrimination against women: A suit was brought in 2007 against Walmart in 2007, which was allegedly claiming discrimination based on gender regarding job opportunities at Walmart. Female employees are subject to discrimination with regards to promotions as well as pay scales, as stated in this lawsuit.

5. Imitation: Walmart’s business model is easily copied. Walmart doesn’t have any particular advantage over its competitors apart from its enormous company size.

6. Practices that are discriminatory to race: The recent racial discrimination protests have forced companies to reconsider their policies in question. In June of 2020, the anger was directed towards Walmart’s practice to lock multi-ethnic hair care products behind glass, while products designed for whites aren’t locked. Walmart has been forced to end this discriminatory policy, however the fury is still prevalent for people of race.

7. Safety concerns for employees: Walmart is accused of not taking safety measures in the wake of a recent health crisis, which led to the deaths of 2 employees. 

8. Independence upon the US market: as of April of 2020 Walmart operates around 11,500 locations across the globe and more than 4,700 are inside the US. The global sales of the company amounted approximately $120 billion, compared to $341 billion for market in the U.S. market.

9. Negative publicity: Walmart’s image was damaged due to allegations that it bribed foreign official from Mexico, China, and other countries. In 2019, the company accepted to pay $282 million to resolve the bribery allegations.

Walmart’s Opportunities – Walmart SWOT Analysis 

Walmart SWOT Analysis Walmart Opportunities

1. Expansion to new markets: Expanding to other markets Walmart could profit by expanding its business into markets that aren’t yet explored. These could comprise China, Middle East countries as well as Latin America.

2. Strategic alliances: Walmart is able to develop strategic partnerships with major companies or join forces with other retailers in the world. The acquisition of small businesses can also be profitable for Walmart.

3. Improving human resource practice: The introduction of advanced advancements in the management of human resources can be a great chance for Walmart. Since it is heavily dependent on its employees, innovating to its management of human resources is a major change.

4. Quality standards are being improved: Products that are cheap can be of inferior quality occasionally. Walmart can improve the quality of its products in order to address the health concerns of the consumers.

Walmart’s Threats – Walmart SWOT Analysis 

1. Impeach45 Controversy: Recently, Walmart was publicized for the “Impeach 45” controversy. It offered T-shirts that bore the words “Rope. Tree. Journalist. Some Assembly Required. The T-shirts claimed to be a the promotion of violence. Then, Walmart overturned the controversy and claimed it was distributed through third-party sellers on Walmart’s Marketplace instead of Walmart itself.

2. Fake craft beer controversy: Walmart was sued for selling fake craft beer in 2017. Although it was produced through WX Brands, the beer was advertised and labeled as Trouble Brewery, which was a production company that is not even in existence.

3. The primary target of competitors: The largest grocery store, Walmart is always a main goal for competitors. Target is its closest rival, provides similar products but with better quality. In the same way, Costco offers customers to buy bulk items. Furthermore, they have a good reputation for their treatment of employees when compared to Walmart. Both are publically recognized by the government in this area.

4. Legal as well as legal Problems: Also, this poses an danger to the political and legal matters. could hinder the business’s ability to operate in certain countries.

5. Smaller-sized E-commerce online firms: Many small-scale and small-scale online selling businesses have come on the scene, selling similar products and at comparable price on their websites. This could pose detrimental to the future of the company.

6. Issues with the site: Customers have complained numerous times that there are technical issues on Walmart’s website. The items aren’t displayed in a systematic manner on the site and it is also slow to load. Yet, Amazon is famous for its speedy efficient, effective, and well-organized website, which provides a great shopping experience on the internet for shoppers.

Walmart SWOT Analysis Template

Walmart SWOT Analysis Template

This is the SWOT report that Walmart has done. Please let us know if you have additional suggestions to add.


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