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Swot analysis

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Walmart-SWOT Analysis Strength Walmart is a powerful and established retail brand (Zenith). Kummer has observed that he was quite impressed by the “ endless rows and endless abundance” that unfolds before the eyes of a shopper in Walmart. This kind of presentation and the concept underlying it provides an impression of endless choices to customers. There is a programme run by Walmart which is called heritage agriculture, in which, “ farms within a day’s drive” are encouraged to grow crops which the farmers of those places had been traditionally growing in the past (Kummer). Through this, the local farming economy is strengthened and the customers get more fresh produce. Walmart also has a very competitive pricing pattern (Kummer). By promoting locally produced food items, they are saving on the side of transportation and middle men and are able to place smaller orders (Kummer). Weakness The prices are not really low but the company is only creating a perception that they are low with the slogan, “ always low prices” (Zenith). It has been pointed out that 80% to 85% of Wal-Mart’s items are more expensive” (Zenith). There has been allegation that the quality of goods sold at Walmart is poor and the service is also not up to the expectations of the customers (Zenith). Another bad reputation of the company has been that “ Wal-mart’s buying practices injure its vendors” (Zenith). Walmart’s poor services to its workers had come under criticism many a times (Zenith). The conventional “ business model and organizational rigidity” of Wal-Mart has been another weakness of this company (Zenith). Opportunities It has been an advantage of Walmart that, “ instead of establishing stores near major urban centers where the population concentrates, Wal-Mart expands from its Arkansas base by constructing new stores that are strategically located near distribution centers and in smaller towns” (Rao, Qingyuan yue and Ingram, 7). This gives the company an opportunity to to grow almost limitlessly. Walmart has been experimenting with new store structures including, “ Supercenters– stores with 150, 000-250, 000 square feet of space” and “ neighbourhood markets” (Rao, Qingyuan yue and Ingram, 7). Such novel innovations have been opening up new market avenues for the company. Threats Many local stores of Walmart have been forced to close down owing to protests from local organizations (Rao, Qingyuan yue and Ingram, 4-5). Walmart is accused of undermining the “ charecteristics of local communities” by driving out “ mom-and-pop stores” ((Rao, Qingyuan yue and Ingram, 7-8). The lower prices at Wal-mart have been alleged to be maintained at the cost of the wages paid to its workers ((Rao, Qingyuan yue and Ingram, 8). Also, “ its reliance on cheap imports from oversea”, has been seen as destroying “ jobs in American communities” (Rao, Qingyuan yue and Ingram, 8). Many individuals and local organizations have been taking legal measures against Wal-mart’s entry into their area (Rao, Qingyuan yue and Ingram, 9). Bullet Points Walmart-SWOT Analysis Strength Powerful and established retail brand (Zenith). One stop shop with wide variety of choices (Kummer) Cost reduction by promoting purchase from local farmers (Kummer) Giving fresh produces to customers by promoting purchase from local farmers (Kummer) Competitive price pattern (Kummer) Weakness The lower price claims are not real (Zenith). 80% to 85% of items are more expensive compared to other competitors (Zenith). Quality of goods and service, low (Zenith). Bad reputation of the company exploiting the vendors (Zenith). Bad reputation of maintaining the employees underpaid (Zenith) Conventional “ business model and organizational rigidity” (Zenith). Opportunities Expanding network of small town shops (Rao, Qingyuan yue and Ingram, 7). Experimenting with new store structures including, “ Supercenters” and “ neighbourhood markets” (Rao, Qingyuan yue and Ingram, 7). Threats Local stores being closed down owing to local protest (Rao, Qingyuan yue and Ingram, 4-5). Accused of undermining local communities by driving out “ mom-and-pop stores” ((Rao, Qingyuan yue and Ingram, 7-8). Accused of keeping lower prices at the cost of the wages of workers ((Rao, Qingyuan yue and Ingram, 8). Accused of relying on cheap imports, thereby destroying jobs of Americans (Rao, Qingyuan yue and Ingram, 8). Legal cases being fought against Wal-mart’s entry into new areas (Rao, Qingyuan yue and Ingram, 9). Works Cited Kummer, Corby. “ The Great Grocery Smackdown: Walmart vs Whole Foods”, ReclaimDemocracy, March 2010. web. 10 February 2011. http://reclaimdemocracy. org/walmart/vs_whole_foods. php Rao, Hayagreeva, Qingyuan yue, Lori and Ingram, Paul. Activists, Categories and Markets: Racial Diversity and Protests Against Walmart Store Openings in America, 19 March, 2010. web. 10 February 2011. https://msbfile03. usc. edu/digitalmeasures/qyue/intellcont/activists%20categories%20and%20markets-1. pdf Zenith Management Consulting, “ Case Study: How to exploit Wal-Mart’s Weaknesses”, Zenith Management Consulting, 2005. web. 10 February 2011. http://www. zenith- consulting. com/research/walMart/Wal-Mart-Strategy. pdf

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