Organizational Analysis Phase III Sara
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SarahMathenyOrganizationalAnalysisPartII.pptxWalmart SWOT Analysis
Sarah Matheny
Post University
Dr. Sunil Ramiall
MGT450
April 2, 2022
Walmart SWOT Analysis
The organization SWOT analysis reveals just how effective it utilizes its competitive advantages in dominating and successfully growing in the industry of retail. The analysis identifies the company’s strengths, weaknesses, opportunities and threats.
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SWOT Analysis for Walmart
| Strengths | Weaknesses |
| Massively dominates the world market It is a household name It has effective supply chain operations It exerts immense power over its suppliers It also utilizes economies of scale in manufacturing It offers a massive selection of products. | It has relatively low-profit margins Easy to duplicate business model It is essentially disadvantaged against premium retailers Consistent fire for its hiring and HR practices |
Walmart obtains some of the highest revenues and income than any other global organization cannot manage. The organization has one of the most recognized brands worldwide. In essence, Walmart has the strongest brand globally because it has increasingly presented its operations and marketing strategies worldwide. Walmart maintains tight control over its supply chain logistics by swiftly and efficiently moving its products across the globe. Despite having substantial sales and revenues, the company’s profit margin is often relatively low due to the competitive price it offers. Walmart also uses a general business model that its competitors can easily duplicate. Besides, it risks losing customers to premium retailers who have devoted their efforts and resources to focusing on offering exceptionally a single product type.
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SWOT Analysis for Walmart
| Opportunities | Threats |
| Expansion into developing countries Labor practices improvement Increasing the standards of its products Creation of strategic alliances with other companies | Low-wage and Low-skill jobs Lack of Healthy and sustainable lifestyle to its workforce Stiff competitive environment Presence of other retailers that perform better in the online space Victim in multiple product controversies |
It stands a chance of expanding its operations into emerging markets to increase its revenues, thereby remaining relevant and successful. The company can also continue improving its hiring practices and firing its workforce to build a positive image and remain a desirable option for employment. Moreover, it can look for ways to improve the quality of its products without altering its low price strategy. The company’s cost leadership strategy may lead the company to be perceived as a low waged and low skilled labor. Several cases have been reported regarding the company’s grocery to fail to deliver the healthiest and most sustainable lifestyle to its employees and consumers. The company also faces the risk of losing its global position to other competitive retail stores that offer aggressive competitive force to its business.
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Organizational Business Strategies
Protecting price advantage
Focusing on people
Operational efficiency
Committed to its culture
Reduction of expenses
Talent driving results
Walmart has continued to pursue its business strategy based on its slogan, 'Everyday Low Prices. In other words, the organization is pursuing its cost leadership strategy through economies of scale to attract and retain more consumers. It has efficiently utilised its online sales channels, which has significantly contributed to its level of cost-efficiency in operations related to its retail activities. More than 75 per cent of the organization's walmart.com sales come from its non-store inventory.
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Organizational Competitive Advantages
Attracting competitive prices
Increased focus on customer’s service
Improved groceries
Enhanced flexibility of the shopping
experience
The majority of Walmart's competitive advantages come from its cost leadership strategy. Besides, the management level of its strategy concurrently focuses on associating the organization's advantages with price, assortment, experience, and accessibility. It focuses on providing higher wages and more training experience to its workforce members. This enables the employees to replicate the benefits to customers through better services. It also focuses on increasing its range of fresh produce and organic options.
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Organizational Structure
Walmart uses a hierarchical organizational structure which is also known as matrix functional. There are hierarchy and function-based levels to this structure, and many multinational companies use this structure to deal with divisional and functional structures at one time. Also, it allows corporate managers to influence the organization as a whole. All of the company's stores, including their workforce, are under and reports to one single supervisor.
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Compatibility of the Structure
The organizational structure is compatible with its current operations. It replaces its most longstanding positions of leadership such as assistant manager, co-manager and department manager, which used to be time-consuming to practice and costly to the organization. Its new “future-focused” hierarchy of store leads, team leads and coaches has transacted to effective and efficient operations, which is low cost and less time consuming for the organization. It has also reduced the number of prompt complications with other approaches with multiple managers.
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