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Learning Objective
Explain the componentsExplain the components
of a SWOT Analysis.of a SWOT Analysis.
11
SWOT Analysis
IdentifyingIdentifying
internal strengthsinternal strengths (S)(S)
and weaknessesand weaknesses (W)(W)
and also examiningand also examining
external opportunitiesexternal opportunities (O)(O) andand
threatsthreats (T)(T)
11
SWOT Analysis
©South-Western College Publishing
SS
WW
OO
TT
Things the company does well.Things the company does well.
Things the company does not do well.Things the company does not do well.
Conditions in the external environment
that favor strengths.
Conditions in the external environment
that favor strengths.
Conditions in the external environment
that do not relate to existing strengths
or favor areas of current weakness.
Conditions in the external environment
that do not relate to existing strengths
or favor areas of current weakness.
InternalInternal
ExternalExternal
11
SWOT Analysis
 Production Costs
 Marketing Skills
 Employee Capabilities
 Financial Resources
 Available Technology
 Company/Brand Image
Strengths and WeaknessesStrengths and Weaknesses
INTERNALINTERNAL
Strengths and WeaknessesStrengths and Weaknesses
INTERNALINTERNAL
11
Wal- Mart SWOT Analysis
Wal-Mart is powerful retail brand.Wal-Mart is powerful retail brand.
Wal-Mart has grown substantially over recent yearsWal-Mart has grown substantially over recent years
and has experienced global expansion.and has experienced global expansion.
Wal-Mart has a core competence involving its use of ITWal-Mart has a core competence involving its use of IT
to support its international logistics system.to support its international logistics system.
A focused strategy is in place for HRM andA focused strategy is in place for HRM and
development.development.
Strengths
11
Wal- Mart SWOT Analysis
Wal- Mart is the World’s largest grocery retailer andWal- Mart is the World’s largest grocery retailer and
control of its empire, despite its IT advantages, couldcontrol of its empire, despite its IT advantages, could
leave it week in some areas due to the huge span ofleave it week in some areas due to the huge span of
controlcontrol
Since Wal-Mart sell products across many sectors, itSince Wal-Mart sell products across many sectors, it
may not have the flexibility of some of its more focusedmay not have the flexibility of some of its more focused
competitors.competitors.
The company is global, but has a presence in relativelyThe company is global, but has a presence in relatively
few countries Worldwide.few countries Worldwide.
Weaknesses
11
SWOT Analysis
11
Opportunities and ThreatsOpportunities and Threats
EXTERNALEXTERNAL
Opportunities and ThreatsOpportunities and Threats
EXTERNALEXTERNAL
Social
Demographic
Economic
Technological
Political/Legal
Competitive
Wal- Mart SWOT Analysis
To take over, merge with, or form strategic alliancesTo take over, merge with, or form strategic alliances
with other global retailers.with other global retailers.
There are tremendous opportunities for future businessThere are tremendous opportunities for future business
expansion.expansion.
New locations and store types offer Wal-MartNew locations and store types offer Wal-Mart
opportunities.opportunities.
Opportunities exist for Wal-Mart to continue with itsOpportunities exist for Wal-Mart to continue with its
current strategy of large, super centres.current strategy of large, super centres.
Opportunities
11
Wal- Mart SWOT Analysis
Being number one means that Wal-Mart is the target ofBeing number one means that Wal-Mart is the target of
competition, locally and globally.competition, locally and globally.
Being a global retailer means that Wal-Mart is exposedBeing a global retailer means that Wal-Mart is exposed
to political problems in the countries where it hasto political problems in the countries where it has
operations.operations.
Intense price competition.Intense price competition.
Threats
11
Wal- Mart SWOT Analysis
Being number one means that Wal-Mart is the target ofBeing number one means that Wal-Mart is the target of
competition, locally and globally.competition, locally and globally.
Being a global retailer means that Wal-Mart is exposedBeing a global retailer means that Wal-Mart is exposed
to political problems in the countries where it hasto political problems in the countries where it has
operations.operations.
Intense price competition.Intense price competition.
Threats
11

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Swotanalysiswalmart

  • 1. Learning Objective Explain the componentsExplain the components of a SWOT Analysis.of a SWOT Analysis. 11
  • 2. SWOT Analysis IdentifyingIdentifying internal strengthsinternal strengths (S)(S) and weaknessesand weaknesses (W)(W) and also examiningand also examining external opportunitiesexternal opportunities (O)(O) andand threatsthreats (T)(T) 11
  • 3. SWOT Analysis ©South-Western College Publishing SS WW OO TT Things the company does well.Things the company does well. Things the company does not do well.Things the company does not do well. Conditions in the external environment that favor strengths. Conditions in the external environment that favor strengths. Conditions in the external environment that do not relate to existing strengths or favor areas of current weakness. Conditions in the external environment that do not relate to existing strengths or favor areas of current weakness. InternalInternal ExternalExternal 11
  • 4. SWOT Analysis  Production Costs  Marketing Skills  Employee Capabilities  Financial Resources  Available Technology  Company/Brand Image Strengths and WeaknessesStrengths and Weaknesses INTERNALINTERNAL Strengths and WeaknessesStrengths and Weaknesses INTERNALINTERNAL 11
  • 5. Wal- Mart SWOT Analysis Wal-Mart is powerful retail brand.Wal-Mart is powerful retail brand. Wal-Mart has grown substantially over recent yearsWal-Mart has grown substantially over recent years and has experienced global expansion.and has experienced global expansion. Wal-Mart has a core competence involving its use of ITWal-Mart has a core competence involving its use of IT to support its international logistics system.to support its international logistics system. A focused strategy is in place for HRM andA focused strategy is in place for HRM and development.development. Strengths 11
  • 6. Wal- Mart SWOT Analysis Wal- Mart is the World’s largest grocery retailer andWal- Mart is the World’s largest grocery retailer and control of its empire, despite its IT advantages, couldcontrol of its empire, despite its IT advantages, could leave it week in some areas due to the huge span ofleave it week in some areas due to the huge span of controlcontrol Since Wal-Mart sell products across many sectors, itSince Wal-Mart sell products across many sectors, it may not have the flexibility of some of its more focusedmay not have the flexibility of some of its more focused competitors.competitors. The company is global, but has a presence in relativelyThe company is global, but has a presence in relatively few countries Worldwide.few countries Worldwide. Weaknesses 11
  • 7. SWOT Analysis 11 Opportunities and ThreatsOpportunities and Threats EXTERNALEXTERNAL Opportunities and ThreatsOpportunities and Threats EXTERNALEXTERNAL Social Demographic Economic Technological Political/Legal Competitive
  • 8. Wal- Mart SWOT Analysis To take over, merge with, or form strategic alliancesTo take over, merge with, or form strategic alliances with other global retailers.with other global retailers. There are tremendous opportunities for future businessThere are tremendous opportunities for future business expansion.expansion. New locations and store types offer Wal-MartNew locations and store types offer Wal-Mart opportunities.opportunities. Opportunities exist for Wal-Mart to continue with itsOpportunities exist for Wal-Mart to continue with its current strategy of large, super centres.current strategy of large, super centres. Opportunities 11
  • 9. Wal- Mart SWOT Analysis Being number one means that Wal-Mart is the target ofBeing number one means that Wal-Mart is the target of competition, locally and globally.competition, locally and globally. Being a global retailer means that Wal-Mart is exposedBeing a global retailer means that Wal-Mart is exposed to political problems in the countries where it hasto political problems in the countries where it has operations.operations. Intense price competition.Intense price competition. Threats 11
  • 10. Wal- Mart SWOT Analysis Being number one means that Wal-Mart is the target ofBeing number one means that Wal-Mart is the target of competition, locally and globally.competition, locally and globally. Being a global retailer means that Wal-Mart is exposedBeing a global retailer means that Wal-Mart is exposed to political problems in the countries where it hasto political problems in the countries where it has operations.operations. Intense price competition.Intense price competition. Threats 11