What Is Swot Analysis Of Walmart

Q 6.

(a). Within the topic of marketing plans, define and discuss SWOT analysis and their application/significance in building marketing plans.

(b). By using data/Websites such as Value Line, S&P NetAdvantage, and Yahoo Finance, analyze one firm from the 2016 Fortune Global 500 list and discuss its SWOT analysis (see Textbook p. 470 & Figure 14.6).

In our textbook, SWOT analysis has a role to document all present and possible future influence on performance, negative or positive. (Best, 2013, p 473). When designing a marketing strategy the SWOT analysis is a great tool that a straightforward model that analyzes the strengths, weaknesses, opportunities and threats of an organization. SWOT analysis can be extremely simple to conduct and

In the United States in 2015 it had 24.5% of the total grocery retailer’s market share, with its closest competitor having less than half of Wal-Mart’s share. Wal-Mart has a strong brand value and customer loyalty is very high, which is a direct result of successful strategic planning and their business model. Another great strength is Wal-Mart’s global presence, with only 60% of the company’s total revenues being produced in the U.S. Their commitment to diversity and global expansion has strengthened their brand and increased their cash flows and total revenues.

Weaknesses

Although I mentioned it as a strength, Wal-Mart’s business model is also a major source of weakness. The simple business model is simple to replicate and has a basis of offering the lowest price and a guarantee that they will not be beat. Although this attracts customers, it also sets the company up for small profit margins and even though it offers a competitive advantage, it does not place the company in a strong position in the case of another recession or even minor economic downturn, because there is little room for price adjustments before all profit is lost and the entire pricing strategy becomes an unplanned loss leading price