Walmart SWOT Analysis: Marketing and Management Problem Solving

This report presents a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis of Walmart, examining its position in the market. The analysis highlights Walmart's cost leadership, high-quality goods, and skilled employees as key strengths. Weaknesses include issues with e-commerce, supply chain disruptions, and high employee turnover. Opportunities for expansion in untapped markets, utilizing efficient resources, and capitalizing on fast-paced internet sales are also discussed. Threats include changing market conditions, intense competition, changing legal policies, and market saturation. The report further explores how the SWOT analysis assists marketing and management teams in problem-solving and offers specific recommendations for Walmart's management to address weaknesses, capitalize on opportunities, and mitigate threats. The recommendations include focusing on reducing employee turnover, improving supply chain management, enhancing integrated marketing communication, and strengthening the IT sector.

Running head: SWOT OF WALMART
SWOT Analysis of the Chosen Organization
[Walmart, United States]
Student name
Columbia Southern University

1
SWOT OF WALMART
Table of Contents
1. How does SWOT assist the marketing and management teams to solve problems within the
company?.........................................................................................................................................3
2. Based upon your research and this SWOT analysis, what recommendations would you make
for the management team:...............................................................................................................3
References:......................................................................................................................................5

2
SWOT OF WALMART
STRENGTHS
 Cost leadership
 Consistently provides high-quality
goods
 Employees are competent, capable and
knowledgeable
 World’s largest company by revenue
WEAKNESSES
 E-commerce websites now lags in
performance
 Disruption in supply chains for goods
unavailability and lack of transport
facilities
 Matured markets and also the limited
product expansion
 High employee turnover
OPPORTUNITIES
 Business expansion in markets that
remains untouched till now
 Availability of efficient materials and
skilled labors
 Emerging markets
 Fast paced internet sales
THREATS
 Changing market condition at the
global level
 Intense competition
 Changing legal policies
 Market saturation
Figure 1: SWOT of Walmart
(Source: Martínez, Galván & Alam, 2017)
The above table shows the SWOT analysis of Walmart which supplies some very helpful
information for making an analysis. Cost leadership is one of the unique selling points of
Walmart that has helped it perform exceptionally well in most circles. Consistently providing
high-quality goods to customers is another reason which has helped the organization to establish
a renowned position in the market. It is indeed necessary to win new customers and also to
maintain a healthy relationship with the loyal customers. It has highly skilled employees that
support the company with their strategic capabilities. Such workforce helps the organization with
their innovative thoughts which are of utmost need in the contemporary business market.
Walmart is the world’s largest company in regards to revenue. A revenue structure like such
helps to make further successes as such capability is immensely required while making
investments in research & development (R&D) process, at the time of recruiting skilled
professionals and also during integrated marketing communication.
There is disruption noted on the e-commerce websites which is not a very healthy sign
for few notable reasons. E-commerce platforms attract a healthy customer base which is a
profitable sign for any company. Additionally, customers get the opportunity to find their best
match needs on such platforms. Moreover, competition is immense there; however, it also
provides utmost opportunities to elevate the business success. The supply chain operation is

3
SWOT OF WALMART
also being disrupted which had served the company for long. This is quite a challenge to the
company as supply chain operation needs to be controlled with effective strategies. If not this
may create issues like shortage of materials and hence, real-time delivery of product will also
hamper. It is operating mostly in matured markets and with very little consideration on
product diversification. Matured markets do not bring much of a difference to revenue growth.
Offering a very similar kind of product is also not good as there are others that follow product
diversification strategy. Moreover, such thing weakens the competency in the market. High
employee turnover is another issue that is threatening to any organization. Such thing put an
enormous burden on human resource management.
Walmart has opportunities in the form of new markets that are yet to be touched. By
doing so, the company will be able to break the jinx that it mainly operates in the matured
market. It can target the emerging countries like India. The shortage of materials can be sorted
out by approaching new suppliers probably in emerging nations. Skilled labors can also be
found through sorting out the issues which are responsible for incremented employee turnover.
As discussed, emerging markets like India can be better prospects for the company. Fast-paced
internet sales are also a good platform for cash-on. Walmart should put additional emphasis on
internet sales.
There has been a global change in the market condition. Such changes are in terms of
innovation and the employee management. However, Walmart is facing the challenge in the
form of a high employee turnover. There is a need for effective counter-strategies to respond to
the changing global dimensions. Intense competition at the global level is another threat as
competition can only be narrowed down if it is being countered with effective and timely
strategies. Changing legal policies is a global issue and it really affects the business
performance. Walmart needs to have answers for such circumstances to keep its success
happening. Market saturation is one of the threats which are a challenge to other multinational
companies as well. In such cases, moving to a new market will be required. However, every such
movement does also attract few challenges like uncertain legal policies, the socio-economic
culture of the target country, infrastructural growth and others.
1. How does SWOT assist the marketing and management teams to solve problems within
the company?
SWOT analysis is a good tool to analyze where a specific organization stands in the
market. It communicates the most important aspects of organizational weaknesses and threats
that may take away things from it in future (Bell & Rochford, 2016). Weaknesses need to be
consulted with effective management strategies. On the other hand, threats require a pre-planning
for it in the form of management related changes, technological advancement, and a top-notch
workforce. Most importantly, SWOT analysis of a specific organization educates its
management in the area of excellence and the areas which needs improvement (Bell & Rochford,
2016).
2. Based upon your research and this SWOT analysis, what recommendations would you
make for the management team:
The management team at Walmart is known for performing. However, they have seen
ups and downs in both domestic and overseas circles. Most importantly, they should now focus
on sorting out things which have been worrying the management. Apart from that, there is a need

4
SWOT OF WALMART
to put incremented emphasis on high employee turnover and use of innovative strategies. If
employee turnover gets reduced, this will allow the human resource management focus on other
things like incrementing the competency in the market through incepting innovative technologies
in vital domains like supply chain operation, integrated marketing communication, and the
information & technology (IT) sector. These three sectors undeniably form the backbone of an
organization. An improved supply chain management will also improve a timely delivery of
products. An advanced integrated marketing channel will enhance the capability to connect with
the target audience which is necessary to enhance the customer loyalty. A prospering IT sector
will bring innovative things to the company which helps to remain stronger in competition.

5
SWOT OF WALMART
References:
Bell, G. G., & Rochford, L. (2016). Rediscovering SWOT’s integrative nature: A new
understanding of an old framework. The International Journal of Management
Education, 14(3), 310-326.
Martínez, A. B., Galván, R. S., & Alam, S. (2017). Financial Analysis of Retail Business
Organization: A Case of Wal-Mart Stores, Inc. Nile Journal of Business and
Economics, 3(5), 67-89.