Swot Analysis of Walmart

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Threats

The retail industry has a strong competitive rivalry. Company’s all of sizes compete to be the industry leader. The external factors that affect Walmart the most includes: large number of companies in the retail market, a variety of retail companies and high aggressiveness of retail companies. Due to the extreme competition, Walmart must remain vigilant with its strategy. Most recently, Walmart announced it would slow opening new stores in order to focus more heavily on online sales (Johnston, 2016). This is in response to stores delivering products to the consumers’ doors. More and more consumers are utilizing companies such as, Amazon for the convenience of never leaving the house to shop. Additionally, Walmart can be exposed to political problems in the countries they operate in.

Conclusion

In conclusion, Walmart is the largest retailer in the world. They have a strong market power over its suppliers and competitors. Despite Walmart being seen as the largest retailer in the world, it still has weaknesses due to lack of flexibility. Along with its strengths, Walmart continues to have opportunities in the global and domestic markets. Finally, Walmart must remain vigilant with its strategy, due to the extreme competition.

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References

Barney, J. B., & Hesterly, W. S. (2015). Strategic management and competitive advantage: concepts and cases (5th ed.). Boston: Pearson. 

Bonacich, E., & Wilson, J. (2005). Organizing Wal-Mart's Logistics Workers. New Labor Forum (Routledge), 14(2), 67-75. doi:10.1080/1095760590934788

Hyde, R. (2015, January 18). The Momentum, And Methods, Behind Walmart's Model. Retrieved January 13, 2017, from http://www.investopedia.com/articles/personal-finance/011815/how-walmart-model-wins-everyday-low-prices.asp 

Johnston, L. (2016). Walmart Slowing Store Openings To Focus On Digital. TWICE: This Week In Consumer Electronics, 31(17), 42.

McTaggart, J., Chanil, D., & Dowdell, S. (2006). Survival of the fittest. Progressive Grocer, 85(6), 22.