SWOT Analysis for Strategic Planning
Internal Factors: Strengths
The sizeable operational scale helps the company overcome competition resulting from its low-cost pricing philosophy. Firstly, the global functional size means that Walmart has deep pockets that can be used to finance expansion. Besides, the global supply chain safeguards the company from market-specific risks (Ofori-Nyarko et al., 2020). Also, Walmart uses high-end technology to monitor stock movement. These factors give the retailer a competitive edge over smaller retailers.
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Internal Factors: Weaknesses
Weaknesses originate from its generic operational strategy. The retailer pursues cost leadership, negatively impacting its resources, capabilities, and profit margins. By following cost leadership, Walmart has to reduce prices to retain its loyal customers. The company seeks high sales volumes as the only way to boost profits. Besides, the company’s cost-leadership strategy can be replicated by competitors. As a result, the retailer has limited differentiation factors other than the prices and large size. Also, the business cannot compete with high-end specialty retailers. Customers who patronize high-end retail stores have little regard for costs but instead focus on the quality of products (Ofori-Nyarko et al., 2020).
External Factors: Opportunities
Critical opportunities for Walmart include investing in developing economies. International markets will offer new investment opportunities. Besides, Walmart can attain energy sufficiency by investing in green and renewable energy. Investing in green energy will help the company save electricity expenses and boost its reputation in social welfare.
External Factors: Threats
Threats faced by Walmart include government policy changes. For instance, the Chinese government is trying to boost the value of its currency (Yuan). Since Walmart acquires over 80% of its merchandise from China, the retailer will likely pay slightly higher prices. Walmart is also increasingly facing internal resistance. Communities feel that Walmart has contributed to closing local stores wherever it starts operations. As local businesses close, many people lose jobs. Besides, Walmart causes market saturation in areas where it operates. Finally, the company’s limicompany of unhealthy groceries raises concerns among health-aware clients.
Reference
Ofori-Nyarko, N. S., Wang, F., & Annoh, W. O. (2020). SWOT ANALYSIS: WAL-MART STORES INC. International Journal of Recent Research in Commerce Economics and Management (IJRRCEM). https://www.paperpublications.org/upload/book/paperpdf-1595065803.pdf
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Question 
SWOT Analysis for Strategic Planning
The Strength/Weaknesses/Opportunities/Threats (SWOT) analysis is a critical step in the strategic planning. A SWOT strategically maximizes a company’s substantial opportunities while minimizing weaknesses and threats.
Instructions
Use the following template to complete the SWOT Analysis Strategy Template steps. Click for more options
1-Under Internal Factors, list at least two (2) strengths and two (2) weaknesses of the Walmart organization.
2- Under External Factors, list at least two (2) opportunities and two (2) threats for Walmart.
3- In 250 words or less, compose a WRITTEN SUMMARY OF YOUR OBSERVATIONS.
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