Walmart Analysis LO 1

Executive summary
The company Wal-Mart is analyzed to know its competitive position by SWOT analysis.

The methodology used is descriptive and qualitative research to obtain relevant information

from secondary sources. Wal-Mart is found to have excellent retail position in the world as it is

a leading company with strong revenues. However, it is also found that amid strong brand

equity and customer loyalty, the company is accused of poor labor practices and inability to

cope with the different rules and regulations. It is also found that the company has

opportunism to expand into new markets and diversity it business to support because it is over

reliant on the USA market. It is also found that it does not exploit ecommerce platform to its

fullest potential. Therefore, it is recommended that Wal-Mart should diversity its business,

innovate new products, leverage ecommerce platform and find new markets to further

enhance its competitive position. These recommendations can help the company to enhance

competitiveness. Also, the company is required to leave poor labor practices to avoid lawsuits

and defame. These considerations can improve competitive position of Wal-Mart.

Contents
1.0 Introduction............................................................................................................................. 4
2.0 Methodology........................................................................................................................... 4
3.0 Competitive position of Wal-Mart...........................................................................................4
4.0 SWOT analysis..........................................................................................................................5
4.1 strengths.............................................................................................................................. 5
4.2 Weaknesses..........................................................................................................................6
4.3 Opportunities....................................................................................................................... 7
4.4. Threats................................................................................................................................ 7
5.0 Conclusion............................................................................................................................... 8
6.0 Recommendations................................................................................................................... 8
7.0 References............................................................................................................................... 9
1.0 Introduction
The company Wal-Mart is leading brand in the retail industry worldwide. The company

is founded in 1962 by Sam Walton. The growth of the company is phenomenal as it has 11000

stores worldwide. Wal-Mat operates in 26 countries. The company has strong position in terms

of revenue generation as it is the largest organization generating 548.74 billion yearly.

Furthermore, it is the largest retail company in the USA (Burbach, 2021).

2.0 Methodology
A descriptive research method is used for this purpose. The descriptive research method

uses secondary sources to gather important information about the company. Further, a

qualitative research method is used because it is flexible I nature to obtain relevant data.

3.0 Competitive position of Wal-Mart

The analysis reveals that the company has robust standing in the market. Wal-Mart is

known for its low prices and this makes it more competitive than competitors. For example, the

pricing strategy shows that the company charges 10 percent lower than the competitors and

this makes it more competitive. Everyday low pricing offered by the company makes it leader in

low price offerings. The strategy provides products at unbeatable prices to customers (Choo,

2024). An omni-channnel presence helps Wal-Mart to reduce competitors impact (Schmidt,

2018). The company also provides various financial services. A large customer base also signifies

that the company has strong foothold in the market.

4.0 SWOT analysis
4.1 strengths
Global presence with high range of products

The company has robust international presence and it provides a large numbers of products to

the customers. It also enjoys economies of scale and large customer base.

Efficient supply chain management

Wal-Mart has an upper hand to manage its suppliers and therefore, it purchases products at

lesser prices from them. Also the supply chain management is efficient helping the company to

save more (Miao, 2023). Such efficiency in supply chain management assists Wal-Mart to

enhance its competitiveness.

Strong loyalty of customers

The company enjoys loyalty of customers and it is recognized as trusted brand for them.

Ecommerce presence

The company also makes important progress on ecommerce platform to expand its sales.

Environmental supportive practices

Wal-Mart practices environmental friendly activities by reducing consumption of energy and

abiding by conscious marketing principles. Therefore, it fosters sustainability in its business

operation.

Sound information management system

The company has strong information management system. It assists the company to foster

strong relationship with suppliers (He, 2021).

Diverse revenue streams

The company earns from different kinds of products such as clothing, grocery, electronics and

home goods. Such diversity in revenue generation assists the company to build a large

customer base.

4.2 Weaknesses
Not enough utilization of ecommerce platform

Though Wal-Mart uses ecommerce but in comparison to competitors, it’s still behind them. The

revenue is mostly generated by physical stores (Miao, 2023). However, the growth of

ecommerce changed the buying patterns of customers and this is therefore, a weakness for the

company to not exploit ecommerce platform potential. Therefore, Wal-Mart has to provide

seamless experience to customers during online shopping and integrate its offline and online

channels well to exploit ecommerce benefits.

Inability to meet different rules and regulations

It is found that the company operates in many countries where different rules, regulations and

buying preferences of customers are found (Miao, 2023). Wal-Mart needs to consider cultures,

regulations and economic conditions to attract customers.

Reliance on the USA market

The company still earns most of revenues from the USA that is a weak link. If the economic

condition of the USA deteriorates, it will certainly affect revenue of Wal-Mart.

Poor labor practices

Even Wal-Mart is a leading name in retail sector; still its labor practices attract much criticism.

The company faces negative mouth publicity due to maltreatment of its employees (Pareira,

2023).
4.3 Opportunities
Expansion to other markets

Wal-Mart can expand its business to new markets.

Ecommerce exploitation

The company can exploit ecommerce platform to grow its sales.

Demand to provide sustainable products

The company can provide environmental friendly products to the customers.

Diversification

The company can diversity its business into other areas.

4.4. Threats
Intense competition

There is an intense competition with big and small players in terms of pricing and innovating

products.

Economic slowdown

Changing customer preferences and economic downturn may affect company’s profits.

Regulatory demand

Increasing demands by regulators to follow rules and regulation also pose threat.

Findings

The finding depict that Wal-Mart is positioned well and enjoys economies of scale. However, its

poor labor practices, and reliance of the USA market requires taking certain measures. The

company can expand itself into new markets and diversity its products. It is also found that

intense competition and regulatory requirements pose threats to the company.

5.0 Conclusion
It is found that Wal-Mart is leading retail organization who has strong presence in different

countries. It enjoys strong customer loyalty and brand identity. However, it requires tapping

ecommerce platform really well and stopping unfair labor practices. Further, it has opportunity

to diversity its business and provides innovative and sustainable products.

6.0 Recommendations
1. Wal-Mart should enhance its labor practices to retain employees.

2. It should invest in technology to innovate new products

3. It should exploit the ecommerce platform to realize its full benefit.

7.0 References
Burbach, C. (2021). Walmart Strategic Analysis.

https://digitalcommons.unl.edu/cgi/viewcontent.cgi?article=1373&context=honorstheses

Choo, J. (2024). Walmart business strategy: A comprehensive analysis.

https://strategyjourney.com/walmart-business-strategy-a-comprehensive-analysis/

#:~:text=Walmart's%20pricing%20strategy%20and%20its,retail%20trends%20and

%20pricing%20dynamics.

He, Z., Ding, Y., & Liu, W. (2021, September). The States Quo of Walmart and Challenges and

Opportunities of Their Online Transformation in China Based on SWOT Analysis. In 2021

International Conference on Financial Management and Economic Transition (FMET

2021) (pp. 353-359). Atlantis Press.

Miao, H. (2023). Walmart's Business Strategy and Financial Analysis Based on Porter's Five

Forces Analysis Model and SWOT. Highlights in Business, Economics and

Management, 23, 1156-1163.

Pareira, D. (2023). Walmart SWOT Analysis.

https://businessmodelanalyst.com/walmart-swot-analysis/

Schmidt, S. (2018). Wal-Mart’s Competitive advantage: 3 key success factors.

https://blog.marketresearch.com/walmarts-competitive-advantage-3-key-success-

factors
Change Barriers Analysis
Contents
1.0 Introduction............................................................................................................................. 3
2.0 Communication barriers analysis.............................................................................................3
2.1 cultural difference barriers...................................................................................................3
2.2 language variance................................................................................................................ 4
2.3 challenge of time zone.........................................................................................................4
2.4 technological hurdles........................................................................................................... 4
2.5 hierarchical barriers............................................................................................................. 4
3.0 proposed strategies................................................................................................................. 5
4.0 Effectiveness of proposed strategies.......................................................................................6
5.0 Conclusion............................................................................................................................... 6
6.0 References............................................................................................................................... 7
1.0 Introduction

XYZ leadership team faces strong resistance to change by employees while it introduces

major restructuring in the organization. Many barriers exist to introduce change such as

technology issue, cultural differences, and issue of different time zone, language variance and

hierarchical order. Therefore, all these communication barriers to change are analyzed.

Furthermore, the report describes strategies to mitigate these barriers. Effectiveness of

suggested strategies is also discussed in this report.

2.0 Communication barriers analysis

2.1 cultural difference barriers

The instructions offered by headquarter in the USA are not followed by Japanese

employees. They feel that such instructions to follow new procedures and policies are not

welcomed as employees show lack of cooperation. Here, feasibility of Hofstede dimensions is

essential to consider. It is found that power distance and uncertainty avoidance may cause

resistance to change. Comparing cultures of Japan and the USA reveals that Japanese tend to

follow orders and they like a hierarchical order. However, employees in USA are assertive and

they do not like hierarchical order. A high power distance is found in Japan and therefore,

Japanese people do not line equity principle. The next factor is uncertainty avoidance that is

quite high in Japan. Therefore, Japanese people do not tend to welcome new policies and

procedures until these policies and procedures are well accepted by people. In such case, the

USA headquarter is required to communicate clearly benefits of change to Japanese employees

to mitigate resistance towards change.

2.2 language variance
Language variance causes communication barrier between people. Language variance

may cause misunderstanding among employees and hamper work productivity (Ramlan, 2018).

XYZ management team also faces language variance issue as many Japanese employees are not

experts in English for reporting purpose. Moreover, Japanese have natural attachment to their

language. This causes a lack of collaboration with other employees. It is imperative for XYZ

Company to understand language issue to introduce change.

2.3 challenge of time zone

As the company has various teams in different locations, it is not possible to meetings

smoothly. Therefore, a lack of collaboration is evident among the teams. Such issue also causes

lack of communication between teams. Therefore, time zone challenge must be mitigated to

enhance communication.

2.4 technological hurdles

There are certain employees who are not comfortable to follow guideline to use a new

communication platform for virtual meeting. Older employees, particularly, are resistant to

adopt new technology. In this regard, training to these employees is necessary to surpass

technological hurdle.

2.5 hierarchical barriers

Hierarchical structure causes problems to employees as many employees do not prefer

to have a flat organizational structure. Employees belonging to those cultures where hierarchy

is commonly found are not comfortable to accept a reporting structure without hierarchy. In

certain cultures, where power distance is high, employees prefer to have a hierarchical
structure. Therefore, pleas of employees need to be listened before introducing a new

structure.

3.0 proposed strategies

 The first thing that XYZ Corporation should consider is offering cross-cultural

training to the employees. Cross cultural competence is necessary for

international business (Johhson, 2006). As XYZ Company has international

presence, it is vital to provide cross-cultural training to the employees. Such

training cans education about cultural differences (Cox, 1991). Therefore,

training is recommended to avoid cultural conflicts. Further, such training can

build empathy towards practices of other cultures. Therefore, this training is

required to address cultural differences.

 The next issue is language variance that can be addressed by offering training on

English language. By using simple language for reporting purposes can help

Japanese employees to use English language for reporting (Gratis, 2024).

 Addressing time zone challenges requires that time zone rules must be

established to avoid confusion (Dayibas, 2024). Considering necessity of meeting

is also required to avoid distraction and confusion. A virtual platform can be used

for communication.

 Addressing resistance of employees to learn new technology requires personal

training. Such training can help them to learn new technology. Communicating

benefits of learning new technology can also help them to learn (Lau, 2022).

Recruiting tech savvy volunteers can also help the organization.

  Addressing hierarchical barriers requires understanding the pleas of employees

and promoting open communication with them. Promoting collaboration with

them can also address hierarchical barrier (CHRMP, 2024).

4.0 Effectiveness of proposed strategies

The strategies recommended can enhance collaboration and communication with

employees. These strategies can help to recognize cultural differences, and foster open

communication. Further, these strategies can provide training to employees to address

resistance by understanding their pleas and needs. Therefore, these strategies are crucial for

XYZ organization.

5.0 Conclusion
The conclusion derived from XYZ company analysis reveals many communication

barriers. These barriers can be addressed by cross cultural training, training for English language

learning, collaboration and open communication with employees and using a virtual platform.
6.0 References

CHRMP. 2024. Hierarchy culture: A comprehensive guide+ 5 tips.

https://www.chrmp.com/hierarchy-culture/

Cox, T. H., & Blake, S. (1991). Managing cultural diversity: Implications for organizational

competitiveness. Academy of Management Perspectives, 5(3), 45-56.

Dayibas, S. (2024). How to overcome time zone challenge in remote teams?

https://www.icterra.com/how-to-overcome-time-zone-challenge-in-remote-teams/

Gratis, B. (2024). Overcoming language barriers to communication.

https://nulab.com/learn/collaboration/overcoming-language-barriers-communication/

Johnson, J. P., Lenartowicz, T., & Apud, S. (2006). Cross-cultural competence in international

business: Toward a definition and a model. Journal of international business studies, 37,

525-543.

Lau, G. (2022). 8 Strategies to help employees adapt to new technology in the workplace.

https://www.spiceworks.com/hr/future-work/guest-article/8-strategies-to-help-employees-

adapt-to-new-technology-in-the-workplace/

Ramlan, S., Abashah, A., Samah, I., Rashid, I., & Radzi, W. N. W. M. (2018). The impact of

language barrier and communication style in organizational culture on expatriate’s

working performance. Management Science Letters, 8(6), 659-666.