SWOT analysis of walmartA SWOT analysis of Wal Mart
This assignment is basically based on SWOT analysis of Wal-Mart, a leading biggest global retail company. Wal-Mart’s Sam Walton opened the first discount store in Rogers Arkansas back in 1962, and 47 years later, Wal-Mart operates 8,159 units in 17 countries. Wal-Mart employs over 2.1 million people worldwide, making them one of the largest private employers in both the US and Canada, and the largest private employer in Mexico.² Even in the midst of a recession it’s estimated that Wal-Mart stores’ retail market share has raised markedly³ and they are seeing sales gains for 2009. Wal-Mart has a dramatic story of success from its humble beginnings to its transformation into an industry leader; one can only wonder what the future holds for this corporate giant.
One aspect of Wal-Mart’s structure that has given them a competitive edge is their efficiency in logistics. Beginning in the early 1970’s, Wal-Mart utilized a warehouse distribution strategy facilitating bulk purchasing and streamlined distribution processes enabling them to dramatically minimize distribution costs. Today Wal-Mart has more than 147 distribution centres with the average facility serving 75-100 stores. Their truck fleet travels about 800 million miles a year and they move over 5.5 billion cases of products. A Wal-Mart distribution centre can have up to twelve miles of conveyor belts and about 500 - 1,000 employees. [via : http://walmartstores.com/FactsNews/FactSheets/]
Wal-Mart has also been able to gain competitive advantage with their embracement of Technology advance. This network included voice and video communication which streamlined the company’s communication and facilitated the flow of sales and inventory information to the corporate headquarters in Bentonville, Arkansas.6 During a period of slower growth in the early 21st century, Wal-Mart made substantial technology investments that were successful in gaining more inventory...