Wal-Mart SWOT Analysis

Essay by Casper24College, UndergraduateA, November 2008

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Wal-Mart has an abundance of strengths which is obvious due to its incredible success. Wal-Mart is the largest employer in the United States and the company is one of the few places left for people to get a decent job without a college education. Wal-Mart also has the second largest net sales in the world. This incredible number of sales is due significantly to Wal-Mart's aggressive growth strategy. In 2003 alone they added 425 new stores all over the world. An increase in customer demand for SuperCenters encouraged the company to add 4,000 more. Overall they added 48 million square feet of retail space ("Wal-Mart Company Profile" 6). They can also attribute their large amount of sales to the fact that they have stores all over the world. Their truly global presence is apparent in their operation of "around 1,350 Wal-Mart Discount Stores, 1,700 SuperCenters, 85 Neighborhood Markets and 550 Sam's Clubs in the United States, with numbers continuing to grow…and about 1,300 locations in Canada, Mexico, the UK, Germany, Asia and South America" ("Wal-Mart Company Profile" 5).

One of Wal-Mart's competitive advantages is their remarkable logistics system. They are able to ship merchandise from any of their numerous distribution centers in order to provide the cheapest and most efficient route. They even have their own distribution center for their online orders. The invention of sharing sales data with suppliers through computer programs has allowed Wal-Mart to consistently keep their shelves stocked with popular items. Technology in general is an unbelievable strength that Wal-Mart is able to invest in to improve their company. Having a website has allowed for increased sales all over the world. This not only provides convenience for customers, but with a logistics system like the one Wal-Mart has in place, online orders have become...