Analyze the case study of Walmart department store Lana D August 2, 2022
Analyze the case study of Walmart department store
Walmart department store

Walmart is among the top retail businesses in the global. It is incorporated in America and runs overseas outlets in various countries. In this post, let’s analyze the Walmart department store case study.

Overview of Walmart department store

Overview of Walmart department store

Founded in 1962 as a Rogers-based discount store, it has expanded into the globe’s biggest grocery store. 6 years later, in Bentonville, AR, the 1st Walmart department store provided home items and clothing. After that, it started to run stores with electronics, televisions, and specialty stores that stock jewelry and books.

Competitors 

Walmart experiences tough competition from specialty discount retailers and general retail businesses such as Kmart, Woolworth, and Target. For example, when it comes to Kmart, it has been the largest Walmart rival. After being severely affected by crises, Kmart failed to keep Walmart from reaching it and taking the lead.

SWOT analysis of Walmart

SWOT analysis of Walmart

Evidently, SWOT analysis (̣̣̣̣̣̣̣̣̣̣̣̣̣̣in full strengths, weaknesses, opportunities, and threats) is crucial in any business’ strategic management. We hope you know that SWOT refers to an interdisciplinary approach that works on corporate strengths and weaknesses.

Strengths:

When it comes to Walmart’s strength, it is a strong and reliable retailer all over America. The Walmart department store is famous as a destination of value. It is so convenient that products are all in a unified location. 

Besides, the store has relatively established key competencies in comparison with its rivals. That key competence results from its global logistical system and decent IT system, ensuring good procurement. Also, Walmart has paid attention to HR management that involves staff training and retention, which strengthens its position in the sector.

Moreover, the Walmart department store has an edge over competitors because of its cost leadership, which allows the store to provide shoppers with services and products at reduced prices. This cost advantage likewise lets it attain better purchasing power suppliers than other firms.

Weaknesses:

When it comes to the weak side, this general store focuses on offering various products. That inflexibility makes it fail to handle specialty-centered retailer rivals. Besides, while the firm is global, its international presence is only in some countries. Finally, considering the corporate expansiveness, Walmart faces challenges related to controlling its outlets.

Opportunities:

The external environment analysis presents the Walmart department store with a wide range of opportunities. To begin with, given the company’s stature in the sector, it has a good chance to look for strategic alliances and mergers with top-notch international and local retail businesses centering on specific market niches.

In addition, Walmart enjoys a chance of boosting its investment in overseas countries. This is particularly in emerging markets like China as well as European countries. 

Threats:

On the one hand, it is presented with many opportunities. But the company cannot underestimate the threats, the biggest of which is more competition from global and local rivals.

In conclusion, hopefully, after analyzing the case study of the Walmart department store, you understand better the SWOT of the Walmart department store. It needs to make use of the opportunities presented to cement its market leadership position. For further information, call us.

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