Walmart SWOT Analysis (2022 Business)

Walmart is one of the most successful operations in the United States. Many researchers, business people, and engineers like to look at the Walmart SWOT analysis to determine how the company achieved its massive success.

Let's take a look at Walmart's strengths, weaknesses, opportunities, and threats in the United States market.

What are Walmart's Strengths as a business?

1. Walmart has a very efficient supply chain and logistics network. The company's "just in time" inventory system ensures that products are delivered to stores only when they are needed, which reduces waste and keeps costs low.

2. Walmart is a master of big data analytics. The company collects and analyzes vast amounts of data on everything from customer behavior to supplier performance. This information gives Walmart a significant competitive advantage.

3. Walmart has a huge customer base in the United States. The company's low prices and wide selection of products attract millions of customers every week.

4. Walmart has a very efficient store layout and design. Everything from the merchandise layout to the checkout process has been carefully designed to minimize customer frustration and maximize efficiency.

5. Walmart is a very powerful retailer. The company's size and scale give it a significant advantage over smaller competitors.

What are Walmart's Weaknesses?

1. Walmart has been criticized for its low wages and poor benefits. Many of the company's employees are not able to make a living wage, which has led to protests and negative publicity.

2. Walmart has been accused of putting small businesses out of business. The company's low prices often make it difficult for small businesses to compete.

3. Walmart has been criticized for its environmental record. The company has been accused of polluting the environment and not doing enough to reduce its carbon footprint.

4. Walmart has been criticized for its treatment of suppliers. The company has been accused of putting pressure on suppliers to keep prices low, which can lead to poor working conditions and lower quality products.

5. Walmart faces stiff competition from Amazon.com and other online retailers. The company's brick-and-mortar stores are not always able to compete with the convenience and selection of online retailers.

What are Walmart's Opportunities?

1. Walmart can expand its operations into new markets. The company has been successfully expanding into international markets such as India and China.

2. Walmart can focus on its online business. The company has been investing heavily in its e-commerce operations and is now a major player in the online retail space.

3. Walmart can continue to grow its grocery business. The company's grocery business is one of its most successful segments and there is room for further growth.

4. Walmart can improve its reputation. The company has been working to improve its image in recent years and has made progress on issues such as sustainability and employee wages.

5. Walmart can take advantage of changes in the retail industry. The rise of e-commerce and mobile commerce is creating new opportunities for retailers.

What are Walmart's Threats?

1. Walmart faces the threat of competition from Amazon and other online retailers. The company's brick-and-mortar stores are not always able to compete with the convenience and selection of online retailers.

2. Walmart faces the threat of slowdown in the global economy. A recession or economic crisis in any major market would have a negative impact on Walmart's sales.

3. Walmart faces the threat of political and economic instability in international markets. The company's expansion into new markets such as India and China is subject to political and economic risk.

4. Walmart faces the threat of regulatory changes. Changes to laws and regulations, such as those pertaining to labor or the environment, could have a negative impact on the company's operations.

5. Walmart faces the threat of cyber attacks. The company's reliance on technology makes it susceptible to cyber attacks, which could lead to disruptions in its operations or the loss of customer data.

How can Walmart improve its business?

1. Walmart can focus on its online business. The company has been investing heavily in its e-commerce operations and is now a major player in the online retail space.

2. Walmart can improve its reputation. The company has been working to improve its image in recent years and has made progress on issues such as sustainability and employee wages.

3. Walmart can take advantage of changes in the retail industry. The rise of e-commerce and mobile commerce is creating new opportunities for retailers.

4. Walmart can expand its operations into new markets. The company has been successfully expanding into international markets such as India and China.

5. Walmart can continue to grow its grocery business. The company's grocery business is one of its most successful segments and there is room for further growth.

What is the cost leadership strategy Walmart uses?

Walmart's cost leadership strategy is based on the company's ability to offer low prices to customers. This is achieved through a number of initiatives, including a focus on efficiency and scale. Walmart has also been able to keep costs down by putting pressure on suppliers to keep prices low. This strategy has helped Walmart become the world's largest retailer.

Is global expansion in foreign markets a benefit to Walmart?

Yes. The company's expansion into new markets such as India and China is subject to political and economic risk.

Walmart's expansion into foreign markets can be a benefit to the company if it is able to successfully navigate the political and economic risks associated with these markets. Walmart has been successful in expanding into other international markets, such as Canada and Mexico.

Does Walmart have high customer satisfaction?

Walmart ranks among the top 10 retailers in the American Customer Satisfaction Index (ACSI). The company also ranks highly in other customer satisfaction surveys, such as the Harris Poll Reputation Quotient survey. In general, Walmart's customer satisfaction ratings are high.

Is the global supply chain a threat to the retail giant, Walmart?

Commodity prices, geopolitical risk, and other factors can create disruptions in Walmart's global supply chain. However, the company has a team of professionals who work to mitigate these risks and keep the supply chain running smoothly. In general, Walmart's global supply chain is not a major threat to the company.

Common FAQ's

Questions about the Walmart business.

Are thin profit margins a threat to Walmart?

No. In fact, Walmart's ability to generate significant profits despite its low prices is a competitive advantage. The company's focus on efficiency and scale allows it to keep costs low and pass the savings on to customers.

What is Walmart's policy on labor unions?

Walmart is opposed to labor unions. The company has been successful in preventing its employees from unionizing.

What is Walmart's environmental record?

Walmart has been criticized for its environmental record. The company has been accused of polluting the environment and not doing enough to reduce its carbon footprint.

What are some of the key issues facing Walmart?

The key issues facing Walmart are competition, the economy, regulations, and cyber security.

How has Walmart been doing financially?

Walmart has been doing well financially. The company reported strong sales and earnings in its most recent fiscal year.

Is Walmart a publicly-traded company?

Yes. Walmart is a publicly-traded company. The company's stock is traded on the New York Stock Exchange under the ticker symbol WMT.

How many employees does Walmart have?

Walmart has more than 2 million employees.

What is Walmart's website?

The Walmart website is www.walmart.com.

What is Walmart's customer service number?

The Walmart customer service number is 1-800-WALMART (1-800-925-6278).

Where is Walmart headquartered?

Walmart is headquartered in Bentonville, Arkansas.

What is Walmart's history?

Walmart was founded by Sam Walton in 1962. The company began as a small discount store chain and has grown to become the largest retailer in the world. Walmart operates more than 11,000 stores in 27 countries.

Favorite Resources

Our favorite resources are included below.

Job interview resources

• Common Interview Questions by Marquette University
• Prepare for Behavioral Interview Questions by Marquette University
• Preparing for Job Interviews by the University of Kansas
• Mock Interview Handbook by CSUCI
• Interview Guidebook by Lebanon Valley College

Resume and cover letter resources

• Writing a Resume and Cover Letter by USC
• Resume Writing Tips by the University of Wisconsin-Madison
• Resume and Cover Letter Guide by Harvard University

Job search resources

• Building and Engaging Your Network by UC Berkeley
• Career Ready Assessment by UC Berkeley

Interview Question and Answer Guide (PDF)

Download our full interview preparation guide. Complete with common interview questions and example answers. Free download. No email required.

Download PDF