SWOT Analysis of Wal-Mart

Founded by Sam Walton, Wal-Mart is a chain of large discount department stores and a chain of warehouse stores.  Wal-Mart’s winning strategy in the U.S. was based on selling branded products at low cost. Wal-Mart serves customers and members more than 200 million times per week at more than 8,650 retail units. The company employees more than 2 million associates worldwide. The SWOT analysis of Wal-Mart is given below.




  1. Wal-Mart has strong financial position. According to the Forbes, Wal-Mart is the world’s biggest public corporation by sales in 2010.
  2. Wal-Mart is the biggest majority private employer and the biggest grocery retailer in the US. In 2009, Wal-Mart generated 51% of revenue from grocery business in the US.
  3. Wal-Mart has 8500 stores in 15 countries, with 55 different names. The corporation functions beneath its own name in the US, including the 50 states.   
  4. Wal-Mart has highly successful operations in the South America, UK, and China.
  5. They are providing wide range of services and products under one roof with guaranteed satisfaction.
  6. Wal-Mart is the number one retail-variety hoard in the world.





  1. Wal-Mart had some unsuccessful ventures in few countries; it was forced to pull out of the South Korea and Germany. 
  2. Wal-Mart does not have formal mission statement; the mission statement does not clearly states the type of business Wal-Mart is in.
  3. There are various criticisms about the issues with the company’s labor relations.
  4. Wal-Mart does not have any unions; this gives a perception that the organization is  treating its employees poorly.
  5. Wal-Mart’s top management is dominated by few females and minority employed.
  6. They do not have any research and development facility to open any store.
  7. Earnings per share, average collection period, and fixed turnover ratios are not good.
  8. Wal-Mart has the slowing speed of the depart lines due to frequent number of consumer. This may result in the switch of consumers to other stores.




  1. Wal-Mart’s industry is in the free trade zone. Since the government enters into free trade agreements with different countries this may result in new markets for Wal-Mart.
  2. Since the world is moving very fast, time has become a valuable resource for everyone. Consumers are becoming busy and they want to save their time by shopping at one place.
  3. Fast moving pace of today’s high-technology world has increased customers preference for internet shopping and they want friendly site designs and delivery.
  4. Asian markets are the biggest opportunities for the retail industry because they do not have strong one roof operation.
  5. Recovery of global economy is a very good opportunity for the Wal-Mart because it will increase demand for the consumer products.




  1. Wal-Mart is being criticized for its effect on local communities, mainly small towns with many stores. Various researches conducted on Wal-Mart show that small stores can lost their 50% of the business after Wal-Mart openings. 
  3. As Wal-Mart has strong presence in many countries therefore,  it has to face regulations of their respective governments as well.
  4. One of the important threat for the Wal-Mart is that the industry is not following consumer savor.
  5. Internet or technological advancement can be a big threat to the retail industry because such advancements promotes online sales due to which competition will increase.
  6. The sale of consumer products is directly related to the income of consumers. Due to the various economic recessions, the income of consumers is affected from time to time which ultimately impact the sales of consumer products.

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