Swot Analysis Of Walmart Stores

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About Wal-mart Stores, Inc. Wal-mart Stores Inc. is the world's largest multinational retail corporation, where it operates in retail and wholesale business. The company was founded by Samuel Moore Walton and James Lawrence Walton on July 2, 1962 with its headquarters based in Bentonville, AR. Wal-mart Inc. has three business segments such as: Wal-mart Stores U.S., Wal-mart International, and Sam’s Club. Wal-mart U.S. engages in physical and digital retail operations based in the U.S, and it also offers services such as: money orders, prepaid cards, wire transfers, check cashing and bill payment. For Wal-mart International, the company operates retail, wholesale, and other operations based outside of the U.S. To illustrate, these include supercenters,…show more content…
Wal-mart engaged in cut-throat competition with many other grocery retail chains and supermarkets such as Costco Wholesale Corp., Macy’s Inc., Sears Holding Corporation, Target Corp., and so on. However, if Wal-mart has the upper hand, then it is because of its pricing strategy. While Target and Costco are important competitors, the other brands seem to be not significant competitive threats to Wal-mart. Kmart, Sears, Best Buy, etc. are not strong enough to pose a competitive challenge because Wal-mart is the king when it comes to competition in the retail industry (Yahoo Finance, 2016). To elaborate, in 2015, Business Insider ranked Wal-mart as the most powerful company in the United States because of its high revenue, enormous scale and scope capabilities (Loudenback & Martin , 2015). As Wal-mart wants to make a shift into e-commerce, it has another huge competitor, which is Amazon.com, Inc. In 2016, Wal-mart acquired Jet.com which is one of the fastest growing e-commerce sites to save customers’ time and money. Wal-mart and Jet will continue maintaining distinct brands by having Wal-mart keeping its focus on the Everyday Low-Price strategy, while jet pays attention to the uniqueness and differentiation of customers’ experience (Wal-mart,…show more content…
There are several retail stores such as Target and Best Buy that customers can shop. Wal-mart sells thousands of products including groceries, entertainment, health, pharmacy, stationary, auto spares, accessories, hardware, apparel, home furnishings, and household appliances. The factor that keeps the threats from substitute products to the minimum is having Wal-mart sell a wide range of products and service, as well as, substitutes for these products. The external factor of the low variety of substitutes at other retail stores make is difficult for consumers to move away from the variety of products available in Wal-mart stores. Plus, Wal-mart has provided price advantage for customers, which incentivizes them to come to Wal-mart. To elaborate, Target charges about 15% more than Walmart for groceries. And, a price gap between Wal-mart and Target existed across all food categories, from fresh to packaged goods. Walmart has been offering products at least 20% cheaper than Target on the following items: eggs, milk, meat, olive oil, grapes, pasta, and so on. However, Target had offered lower prices on a few items such as: grapefruit, coconut oil, and canola oil. So, the total basket of the grocery at Walmart cost $95.98 while it cost $110.25 at Target (See Figure1.1) (Peterson,

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