Transcript Document

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Learning Objective
Explain the components
of a SWOT Analysis.
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SWOT Analysis
Identifying
internal strengths (S)
and weaknesses (W)
and also examining
external
opportunities (O) and
threats (T)
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SWOT Analysis
S
W
O
T
Things the company does well.
Internal
External
Things the company does not do well.
Conditions in the external environment
that favor strengths.
Conditions in the external environment
that do not relate to existing strengths
or favor
areasCollege
of current
weakness.
©South-Western
Publishing
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SWOT Analysis
Strengths and Weaknesses
INTERNAL
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Production Costs
Marketing Skills
Employee Capabilities
Financial Resources
Available Technology
Company/Brand Image
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Wal- Mart SWOT Analysis
Strengths
Wal-Mart is powerful retail brand.
Wal-Mart has grown substantially over recent years
and has experienced global expansion.
Wal-Mart has a core competence involving its use of IT
to support its international logistics system.
A focused strategy is in place for HRM and
development.
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Wal- Mart SWOT Analysis
Weaknesses
Wal- Mart is the World’s largest grocery retailer and
control of its empire, despite its IT advantages, could
leave it week in some areas due to the huge span of
control
Since Wal-Mart sell products across many sectors, it
may not have the flexibility of some of its more focused
competitors.
The company is global, but has a presence in relatively
few countries Worldwide.
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SWOT Analysis
Opportunities and Threats
EXTERNAL
Social
Technological
Demographic
Political/Legal
Economic
Competitive
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Wal- Mart SWOT Analysis
Opportunities
To take over, merge with, or form strategic alliances
with other global retailers.
There are tremendous opportunities for future business
expansion.
New locations and store types offer Wal-Mart
opportunities.
Opportunities exist for Wal-Mart to continue with its
current strategy of large, super centres.
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Wal- Mart SWOT Analysis
Threats
Being number one means that Wal-Mart is the target of
competition, locally and globally.
Being a global retailer means that Wal-Mart is exposed
to political problems in the countries where it has
operations.
Intense price competition.
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