Environement Analysis (Walmart)

Walmart SWOT Analysis

Name
Institutional affiliation

Introduction
SWOT analysis gives an understanding of the internal and the external environmental forces significant in the life of any organization. It provides an insight of where the business has been and where it is likely heading. Majorly the success of an organization would depend on exploiting most of its opportunities while taking advantage of its strengths in the process of evading threats and minimizing its weaknesses.
The SWOT analysis of Walmart would entail looking at the numerous strengths and opportunities then comparing them with its weaknesses and threats that are facing the organization. Therefore, to get the SWOT analysis of Walmart well, it is essential to understand the analysis from a perspective that is the internal and external environment. (Robinson, 2009)
To begin with the internal environment, it entails the strengths and weaknesses of Walmart. The strengths of Walmart are those characteristics it contains within itself that makes it more competitive as compared to other similar organizations in the same industry. The strengths of Walmart are as follows; first is that it has a global field, whereby it is known for its organizational size. Walmart is known for its size regarding its scope it is a multi-continental business. Where it has spread its branches in many countries that have excellent economic stability, therefore, it is stable. The second strength is on the global supply chain; this is from its widespread.

It makes it more competitive since it has a vast market. It obtains its commodities from a broader scope as it has branches worldwide. The third strength is on the high efficiency of a supply chain; it does its work in a way that it minimizes costs. It achieves this through its advanced technologies that monitor and control the products, how they move in out of their stores.
The second part of the internal analysis is focusing on its weaknesses. The first weakness facing the company is the small profit margins per sales. Due to the reduction of prices the company is competing favorably with its competitors. This has caused a low-profit-margin which is a weakness as it makes it minimize other important parts of the business to achieve profits and avoid running at a loss. The second weakness is on the fact that Walmart runs an easily copied business model. This increases the chances if competition from upcoming business investors. (Robinson, 2009)
On the external forces of a business, they are factors outside the company that can affect the growth and success of a business. They include the opportunities and threats. First are the opportunities, Walmart has the following opportunities, first, is the ability to expand into developing countries, this is a chance in the market that they can shift their markets into these developing countries with an aim to expand their market. Second, it has the opportunity to improve its human resource practices. In the past, it has been known for not providing proper human resource practices for its employees. It, therefore, has that opportunity to improve their welfare hence getting the most output from them. The last opportunity is the improvements in quality standards; it has the opportunity to increase its quality standards, therefore, enabling it to improve customer satisfaction.( Holbeche, 2011)
The second external force is on the threats faced by Walmart, the first threat is on the aggressive competition. Several players in the retail market are fighting for the same customers with Walmart and are offering better customer service which makes it a threat to Walmart. The second threat is on the healthy lifestyle; customers are now going for healthier products. They leave Walmart’s products which are not fit for their health to go to other companies that provide such. (Holbeche, 2011)
In conclusion, Walmart has to check on the SWOT analysis well to reduce the threats and while maximizing its opportunities.

References
Holbeche L. (2011) Aligning Human Resources and Business Strategy, Rutledge
Robinson G. D. (2009) Strategic Business Partner: Aligning People Strategies with Business, ReadHowYouWant.com