Walmart Swot Analysis (2011)

3.3 SWOT Analysis

Evaluating Wal-Mart situation in terms of the SWOT Analysis, where will view where its strengths, weaknesses, opportunities and threats in terms of its place in the retail industry. Wal-Mart being such a dominant force has elements, which plot and are willing to take it down given the chance. What makes Wal-Mart be such a dominant force and would break Wal-Mart dominance both here and globally by analyzing its position in terms of the SWOT. Start by looking at the first part of the SWOT analysis, which is the strength of the company.

3.3.1 Strengths

1. The first major strength is the model of Wal-Mart management structure that was cultivated by Sam Walton, the founder of Wal-Mart. In their management system all the managers and workers have a hands on approach to their jobs and that is one of the reasons why not to be totally committed to Wal-Mart main goal that is total customer satisfaction. Wal-Mart has a strategic control system, which allows employees at all levels a feedback about the performance inside of the company. That culture has pushed decision-making authority down to store managers, department managers, and individual employees. It creates a sense to the employees of sense thinking and behaving like an owner of the company, that is why Wal-Mart has higher employee productivity, less employee theft and lower costs than industry rivals.

2. The ability of Wal-Mart being able to offer the lowest prices compared to their rivals which has created customer’s trusting their pricing philosophy so they will always tend to go there before going to other store, this seems always to exceed a customer’s expectations and will tend to go back there over and over again.

3. The development of the hub and spoke system distribution system, which allowed distribution warehouses were strategically located to serve clusters of stores. This allows stores to replenish stocks. This has resulted in higher sales and more inventory turnover. This has...