Weaknesses Of Walmart

1359 Words6 Pages
1.1. Internal analysis of Wal-Mart The Internal Analysis of strengths and weaknesses focuses on internal factors that give an organization certain advantages and disadvantages in meeting the needs of its target market. Strengths refer to core competencies that give the firm an advantage in meeting the needs of its markets. Weaknesses refer to any limitations a company faces in developing or implementing a strategy. 1.1.1. STRENGTHS 1.1.1.1. Scale of operations Wal-Mart is one of largest retail company in the world. With more than $400 billion revenue and more than 10.000 stores, it exercises great buyer power on suppliers to reduce prices (Laura Barbera Marcilla, 2014). Also, its size allows the company to advantage from economic of scale, which in time conduce to a lower price of products for the final consumer. 1.1.1.2. Wide range of products The retailer sells a bigger variety of products than any of its retail competitors. Grocery, health and wellness, apparel, entertainment, electronics and so many other products are sold in its shelves. Also it is remarkable the fact that Wal-Mart sell both, brand products and own label products, that are even cheaper. 1.1.1.3. Competitive in information systems The retailer was the developer of many technological and innovative advances, as the bar code. Lately, the company has launched an app called Scan & Go with which users can scan and bag merchandise and pay at a self-checkout kiosk after presenting the data from their phones.