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Walmart is the biggest retailer in the world, selling everything including foodstuffs to musical instruments. Weekly basis, more than 270 million consumers shop at Walmart, with many more making internet purchases through its portals. In 1962, Walmart began as a single modest discount store in Arkansas. It has developed into the world's largest retailer during the last 50 years, with over 11,200 stores in 27 countries and ten nations' websites (e-commerce). Doug McMillon is Walmart's chief Executive. Place a request for Walmart HR Functions case study help at Tophomeworkhelper.com
This SWOT analysis of Walmart demonstrates how the world's biggest firm leverages its comparative advantages to compete and develop in the retail market.
Strengths - Walmart is the most well-known retail franchise in the market, with thousands of people shopping every day. Walmart's online marketplace has over 60 million things to choose from. Walmart just acquired ASDA, a UK-based store, as well as Flipkart, an Indian e-commerce powerhouse. It has also established a joint venture with Bharti, India's largest retailer. The company's international operations have demonstrated to be a huge success. Walmart opened 47 new locations in Central America, 15 in Chile, 11 in the United Kingdom, and four in China in 2017. Its revenues and global footprint have expanded as a result of its overseas operations. Walmart's business model is founded on economies of scale, which explains why it can provide such low pricing. It has set prices for tens of thousands of items. As a result, it is one among the least expensive shopping destinations. Walmart's most valuable asset is its workforce. It devotes a significant amount of time and money to training and managing its staff. It effectively manages its capabilities, which include information technology, supply chain partners, distribution centers, knowledge, and other abilities. Its activities are outstanding in every place. Our assignment experts are here to provide you with the necessary case study assignment help.
Weaknesses – Walmart's employees has been the subject of numerous criticisms and lawsuits. Low salaries, insufficient healthcare, and unsafe working conditions are just a few of the concerns that have been brought to the public's attention. Walmart's vast size and scope of control may make it vulnerable in some places. Walmart is pursuing a cost-cutting plan. As a result, the corporation's production costs are razor-thin. In 2007, a complaint was filed against Walmart, alleging discrimination against women in job chances at the retailer. According to this case, female employees are prejudiced against in terms of determining pay scale.
Opportunities- Walmart may take advantage of the opportunity by expanding its company into other markets. China, the Middle East, and Latin America may be among them. It has the potential to form strategic alliances with significant corporations or combine with other international merchants. Walmart may be able to benefit from the acquisition of small businesses. Bringing sophisticated advances in human resource practices to Walmart could be a good opportunity. Because it is so reliant on its employees, introducing creativity in human resource management is a critical opportunity. Occasionally, low-cost products result in bad quality. Walmart has the chance to improve the performance of the company in order to address customer medical issues.
Threats - Walmart has recently been in the news due to the “Impeach 45” debate. It offered T-shirts with the phrases "Rope. Tree." emblazoned on them. There will be some assembly required.' These t-shirts were said to promote violence. Walmart, on the other hand, claimed that the T-shirts were sold by third-party vendors on Walmart's Marketplaces rather than by Walmart. In 2017, Walmart was prosecuted for selling phoney local beer. The beer was labelled and promoted as ‘Trouble Brewery,' a non-existent manufacturing firm, despite the fact that it was brewed by WX Brands. Walmart, the nation's biggest food retailer, is a constant target for competition. Target, a serious competitor, sells products that are similar but of greater quality. Costco, likewise, allows customers to buy in quantity. Furthermore, when compared to Walmart, these organizations have a pretty good reputation for paying their customers well. Both companies are backed by the government in these areas. Many micro and small scale internet selling businesses have flooded the business, offering identical products at similar costs. It could jeopardize the company's long-term viability. Customers have repeatedly expressed their dissatisfaction with Walmart's website due to technological difficulties. The products are poorly categorised on the website, and it is slow to load. Amazon, on the other hand, is known for its speedy, functional, and well-organized website, which provides users with a fantastic online buying experience.
Political - Walmart, as the world's largest retailer, is involved in a variety of political issues. Over the last two decades, Walmart has steadily expanded its lobbying costs. Its lobbying costs have increased from $2 million in 2000 to $15 million in 2014. In addition, the business has spent nearly $25 million on lobbying to gain access to the lucrative Indian market. This is done in order to persuade government officials to adopt policies that are beneficial to the company's operations. Walmart has routinely ranked among the top 100 political donations in the United States. Walmart has already asked its employees to donate to the ‘Republicans.' Walmart officially took a firm stand on extending the age requirement for gun licences and gay rights in July 2018 in attempt to woo the people.
Economical- Walmart is well-known for its work environment and employee contentment. Walmart chose to raise the minimum wage of its employees to $9 in 2015 in order to improve its image, however this resulted in a drop in revenues and earnings. Walmart recently planned to grant promotions to almost 230,000 of its personnel, which would of had a substantial impact on company revenues. Aside from labour costs, the United States' government's protectionist measures may potentially pose a danger to Walmart's operations. Walmart has a list of over 26 items, including furniture, air conditioning units, and travel bags, that are likely to be impacted by the hefty tariffs imposed on Chinese goods.
Social - People's purchase patterns are shifting as a result of rapid technological advances and the increased usage of digital platforms. People may now purchase from the comfort of their own homes and get thorough information about various goods thanks to the arrival of E-commerce. This puts merchants like Walmart at danger of using out-of-date sales strategies. Walmart has more than 11,000 retail locations in 27 countries, but its e-commerce capabilities are only available in 11 of them. Walmart's operation in the United States generates about 64% of its sales. As a result, the corporation must adapt to the country's shifting population. The population of the United States is ageing, and by 2030, more than 20% of the inhabitants will be over 60 years old. As a result, the corporation should concentrate on focusing on the older population.
Technological - Walmart has recently made a concerted effort to keep up with technological advancements. Walmart has released a smartphone application. The app contains a lot of features that help customers have a better purchasing experience. Members will be able to keep a record of the many Walmart locations in their area, as well as the different types of products they provide, using the app. Customers will be able to indicate the products they want to buy after they go over to the store using the application. People will be able to go straight to the store without having to carry a handwritten list. In 50 of its shops, the business has also installed a robot that maintains track of the inventory, pricing, and other functions.
Legal - Walmart has continually been in the headlines due to new legal charges and issues. Gender Discrimination against Women is one of the primary legal issues that Walmart has been a part of at the right time. Despite the fact that the Supreme Court of the United States ruled in favour of Walmart in the Gender Discrimination Case in 2011, it has once again become a subject of dispute. Some women have complained about being "devoid of any advancements" and "pay prejudice" at their previous jobs. In 2015, there have also been claims that Walmart did not provide sick leave to its individuals, and that some of those staff members were dismissed as a result.
Environmental - Walmart is making significant progress in the area of sustainability. It has set a goal for itself of obtaining 50% of the energy required for its business from renewable energy sources by 2025, and it claims to have achieved this objective up to 28% of the time. It is also attempting to reduce landfill waste, claiming to have diverted 78 percent of its waste away from landfills. The ‘Gigaton' system aims to reduce harmful emissions by one gigaton by 2030.
Conclusion
Thus from the above discussion of the PESTLE analysis, it can be understood that the various elements like the political, economic, social, technological, environmental and legal factors impact the performance of the business. Also from the SWOT analysis it can be concluded that the company should be improving its HR management standards and also resolve the issue of the employees. Further, it can explore its opportunities in the developing markets and bring advancements to the global supply chains. Further it also needs to address the controversial issues of the company.
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