WeaknessesFirstly, Walmart’s employee turnover rate is high because Walmart cannot guarantee employees’ basic welfare and only gives them a minimum wage. It can be detrimental to the company’s productivity if skilled workers often leave and existing employees lack motivation.Secondly, Walmart lacks product differentiation. Walmart is only one of the retailers with the same products and has to compete with stores such as Target and Amazon. In addition to cost leadership strategy, Walmart has no other core competencies.
Thirdly, Walmart has had negative publicity and experienced many lawsuits in recent years. Walmart has been criticized for its practices, such as poor work conditions, unpaid overtime, and discrimination.OpportunitiesFirstly, Walmart can conduct future business in developing countries, such as India and China.
Walmart can open up local markets by establishing strategic partnerships with local brands in the emerging markets.Secondly, Walmart can pay more attention to online shopping and provide customers with the convenience of shopping at home. Walmart can use its regional warehouse to increase the efficiency of its distribution network.Thirdly, as the trend towards healthy eating, Walmart has the opportunity to launch its own brands associated with this trend, opening a new avenue.Fourthly, Walmart can use technology-leading information systems for order tracking, customer relationship management, and sales in order to develop supply chain management.
ThreatsFirstly, the biggest threat Walmart faces is the fierce competition from similar brands inside and outside the U.S., such as Target and Costco. These retailers are working hard to give a reasonable price while offering a more enjoyable shopping experience. Secondly, some local communities do not like Walmart to enter their area because Walmart’s entry would make it unable for some small businesses to compete on price so that there is no choice but to shut down.