Walmart swot analysis 2021
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Walmart Inc. is the world's largest retailer, serving over 240 million customers weekly and generating $559.151 billion in revenue for 2021, with 78.1% of its sales coming from the U.S. market. The company's strategy focuses on leading in price, improving customer-centric experiences through e-commerce, and maintaining a vast network of stores. Key competitors include Amazon, Costco, and Alibaba, while challenges involve dependence on the U.S. market and navigating complex regulations.
![Walmart business overview from the company’s financial report:
“Walmart Inc. helps people around the world save money and live better –
anytime and anywhere – in retail stores and through e-commerce.
Our strategy is to lead on price, invest to differentiate on access, be competitive
on assortment and deliver a great experience. Leading on price is designed to
earn the trust of our customers every day by providing a broad assortment of
quality merchandise and services at everyday low prices ("EDLP").
EDLP is our pricing philosophy under which we price items at a low price every
day so our customers trust that our prices will not change under frequent
promotional activity.”[1]
SLIDE | 3
BUSINESS DESCRIPTION (1/2)
“ ”](https://image.slidesharecdn.com/walmartswotanalysis2021short-210518132026/85/Walmart-swot-analysis-2021-3-320.jpg)
![“Through innovation, we strive to continuously improve a customer-centric
experience that seamlessly integrates our e-commerce and retail stores in an
omni-channel offering that saves time for our customers. Each week, we serve
over 240 million customers who visit approximately 11,400 stores and numerous
e-commerce websites under 54 banners in 26 countries.
EDLP is our pricing philosophy under which we price items at a low price every
day so our customers trust that our prices will not change under frequent
promotional activity. Everyday low cost ("EDLC") is our commitment to control
expenses so our cost savings can be passed along to our customers.
Our operations are conducted in three reportable segments: Walmart U.S.,
Walmart International and Sam's Club.”[1]
SLIDE | 4
BUSINESS DESCRIPTION (2/2)
“ ”](https://image.slidesharecdn.com/walmartswotanalysis2021short-210518132026/85/Walmart-swot-analysis-2021-4-320.jpg)
Walmart swot analysis 2021
- 1. WALMART INC. SWOT ANALYSIS 2021
- 2. SLIDE | 2 ABOUT WALMART Name Walmart Inc. Logo Industries served Retail (discount department stores, warehouse stores and online stores) Geographic areas served Worldwide (11,443 stores in 26 countries) Headquarters Bentonville, Arkansas, U.S. Current CEO C. Douglas McMillon Revenue (US$) 559.151 billion (2021) 6.7% 523.964 billion (2020) Profit (US$) 13.706 billion (2021) 9.8% 15.201 billion (2020) Employees 2.3 million (2021) Main Competitors Alibaba Group Holding Limited, Amazon.com, Inc., Best Buy Co., Inc, Costco Wholesale Corporation, Kmart Corporation, Schwarz Group, The Kroger Company, Target Corporation, Walgreens Boots Alliance, Inc. and many other retailers/wholesale companies.
- 3. Walmart business overview from the company’s financial report: “Walmart Inc. helps people around the world save money and live better – anytime and anywhere – in retail stores and through e-commerce. Our strategy is to lead on price, invest to differentiate on access, be competitive on assortment and deliver a great experience. Leading on price is designed to earn the trust of our customers every day by providing a broad assortment of quality merchandise and services at everyday low prices ("EDLP"). EDLP is our pricing philosophy under which we price items at a low price every day so our customers trust that our prices will not change under frequent promotional activity.”[1] SLIDE | 3 BUSINESS DESCRIPTION (1/2) “ ”
- 4. “Through innovation, we strive to continuously improve a customer-centric experience that seamlessly integrates our e-commerce and retail stores in an omni-channel offering that saves time for our customers. Each week, we serve over 240 million customers who visit approximately 11,400 stores and numerous e-commerce websites under 54 banners in 26 countries. EDLP is our pricing philosophy under which we price items at a low price every day so our customers trust that our prices will not change under frequent promotional activity. Everyday low cost ("EDLC") is our commitment to control expenses so our cost savings can be passed along to our customers. Our operations are conducted in three reportable segments: Walmart U.S., Walmart International and Sam's Club.”[1] SLIDE | 4 BUSINESS DESCRIPTION (2/2) “ ”
- 5. 1. Being the largest retailer in the world, with unmatched scale of operations and strong market power over suppliers and competitors SLIDE | 5 STRENGTHS S W O T Walmart is the world’s largest company by revenue and the largest retailer in the world. Comparison of the top 5 retailers in the world in 2021 Walmart Amazon.com Costco Kroger Carrefour Revenue (US$ billions) 559.151 294.034 163.220 132.498 87.55 Locations 11,443 576 795 2,742 7,193 Countries served 26 17 12 1 32 Employees 2.3 million 1,298,000 273,000 465,000 322,164
- 6. What does ‘being the largest retailer in the world’ mean to Walmart? • economies of scale; • efficient and effective use of resources; • huge gains from implementing best practices; • experimenting with less risk; • market power over suppliers and competitors. SLIDE | 6 STRENGTHS Walmart’s revenue reached US$559.151 billion in 2021, more than Amazon.com and Costco, the two next rivals, revenues combined. S W O T
- 7. 1. Overdependence on sales from the domestic U.S. market SLIDE | 7 WEAKNESSES In 2021, 78.1% of all company revenue and more than 85% of its operating income came from the U.S. Walmart’s net sales growth in 2019-2021 (in US$ billions) S W O T Walmart U.S. Walmart International Sam’s Club 2021 Net sales 369.963 121.360 63.910 Share of the total net sales 66.6% 21.9% 11.5% Net sales growth 8.5% 1% 8.7% 2020 Net sales 341.004 120.130 58.792 Share of the total net sales 65.6% 23.1% 11.3% Net sales growth 2.8% (0.1)% 1.6% 2019 Net sales 331.666 120.824 57.839 Share of the total net sales 65% 23.7% 11.3% Net sales growth - - -
- 8. $13.88 $14.58 $15.04 $20.02 $20.23 $20.34 $33.62 $38.67 $64.62 $367.19 Wayfair Costco Wholesale Kroger The Home Depot Target Best Buy Apple eBay Walmart Amazon 1. Strengthen and expand Walmart Marketplace and Walmart Fulfillment Services (WFS) to accommodate the growing number of smaller retailers SLIDE | 8 OPPORTUNITIES S W O T • An increased number of smaller retailers moving online opened up many new opportunities. • In 2020, walmart.com become the second highest earning e-commerce website in the U.S. • Increased traffic to the walmart.com makes the platform more attractive to the sellers who have not yet decided to offer their merchandise through Walmart Marketplace. Top 10 U.S. companies ranked by retail e-commerce sales in 2021
- 9. SLIDE | 9 OPPORTUNITIES S W O T • Walmart has an equally good opportunity to attract new sellers to Walmart Fulfillment Services (WFS) • In order for small retailers to be able to compete with the large store chains, they have to offer similar or even better fulfillment of their orders than top retailers can offer. • This is where WFS can offer huge benefits to smaller retailers. Curbside pickup growth
- 10. 1. New laws and regulations concerning food, safety, wage, work benefits and pharmaceutical business Due to Walmart’s size, geographic expansion and business complexity it is subject to numerous laws and regulations in domestic and foreign markets: “The regulations to which we are subject include, but are not limited to: federal and state registration and regulation of pharmacies; applicable governmental payer regulations including Medicare and Medicaid; regulations regarding food and drug safety trade regulations, and consumer protection and safety regulations, as well as state regulatory authorities, governing the availability, sale, advertisement and promotion of products we sell and the financial services we offer. Changes in laws, regulations and policies and the related interpretations and enforcement practices may alter the landscape in which we do business and may significantly affect our cost of doing business.” SLIDE | 10 THREATS “ ” S W O T
- 11. SLIDE | 11 GET THE FULL PRESENTATION BUY WALMART INC. SWOT 2021
- 12. 1. Walmart Inc. (2021). Form 10-K for the fiscal year ended January 31, 2021. Available at: https://d18rn0p25nwr6d.cloudfront.net/CIK- 0000104169/598c8825-536a-4371-ab8a-98b9ee761c43.pdf Accessed May 13, 2021 2. Fortune (2021). Global 500. Available at: http://fortune.com/global500/ Accessed May 13, 2021 3. Carrefour (2021). Consolidated Financial Statements as of December 31, 2020. Available at: https://www.carrefour.com/en/actuality/2021/2020-full-year-results-presentation Accessed May 13, 2021 4. Costco Wholesale Corporation (2021). Form 10-K for the fiscal year ended January 30, 2021. Available at: https://investor.costco.com/static- files/0db73805-069a-42e4-96f9-6ea26ade0a73 Accessed May 13, 2021 5. THE KROGER CO. (2021). Form 10-K for the fiscal year ended January 30, 2021. Available at: https://d18rn0p25nwr6d.cloudfront.net/CIK- 0000056873/30ee8aa9-7149-428d-b3a2-fb0c15ab36d8.pdf Accessed May 13, 2021 6. Amazon.com, Inc. (2021). Form 10-K for the Fiscal Year Ended December 31, 2020. Available at: https://d18rn0p25nwr6d.cloudfront.net/CIK- 0001018724/336d8745-ea82-40a5-9acc-1a89df23d0f3.pdf Accessed May 13, 2021 7. Forbes (2021). The World’s Most Valuable Brands. Available at: http://www.forbes.com/powerful-brands/list/ Accessed May 13, 2021 8. McCarty, T. at LendEDU (2019). Amazon vs. Walmart vs. Target Price Comparison. Available at: https://lendedu.com/blog/amazon-walmart- target-price-comparison/ Accessed May 13, 2021 9. Fulfilled by Amazon (2021). Locations of Amazon Fulfillment Centers. Available at: https://fba.help/list-of-amazon-fulfillment-centers Accessed May 13, 2021 10. Walmart (2021). History Timeline. Available at: http://corporate.walmart.com/our-story/history/history-timeline Accessed May 13, 2021 11. Walmart Inc. (2019). Form 10-K for the fiscal year ended January 31, 2019. Available at: https://d18rn0p25nwr6d.cloudfront.net/CIK- 0000104169/b23b2787-eb44-4e0b-82bd-fca01f140a3e.pdf Accessed May 13, 2021 12. Walmart Inc. (2020). Form 10-K for the fiscal year ended January 31, 2020. Available at: https://s2.q4cdn.com/056532643/files/doc_financials/2020/ar/Walmart_2020_Annual_Report.pdf Accessed May 13, 2021 SLIDE | 12 SOURCES (1/3)
- 13. 13. Trading Economics (2021). U.S. Retail Sales. Available at: https://tradingeconomics.com/united-states/retail-sales Accessed May 13, 2021 14. Osterndorf, C. (2015). 10 reasons Walmart is the worst company in America. Available at: http://www.dailydot.com/opinion/walmart-labor-unions-bad- company/ Accessed May 13, 2021 15. Sainato, M. at the Guardian (2020). Target and Walmart aren’t protecting staff amid pandemic, workers say. Available at: https://www.theguardian.com/business/2020/mar/22/target-walmart-coronavirus-workers-not-protected Accessed May 13, 2021 16. Corkery, M. at The New York Times (2019). Walmart’s Strategy When Wading Into Culture Wars: Offend Few. Available at: https://www.nytimes.com/2019/11/04/business/walmart-doug-mcmillon.html Accessed May 13, 2021 17. American Customer Satisfaction Index (2021). Available at: http://www.theacsi.org/index.php?option=com_content&view=article&id=147&catid=&Itemid=212&i=Department+and+Discount+Stores Accessed May 13, 2021 18. Digital Commerce 360 (2021). Charts: How the coronavirus is changing ecommerce. Available at: https://www.digitalcommerce360.com/2021/02/15/ecommerce-during-coronavirus-pandemic-in-charts/ Accessed May 13, 2021 19. Lebow, S. at eMarketer (2021). The top 10 US companies ranked by ecommerce sales. Available at: https://www.emarketer.com/content/top-10-us- companies-ranked-by-ecommerce-sales Accessed May 13, 2021 20. Ward, T. at Walmart (2021). From Ground-Breaking to Breaking Ground: Walmart Begins to Scale Market Fulfillment Centers. Available at: https://corporate.walmart.com/newsroom/2021/01/27/from-ground-breaking-to-breaking-ground-walmart-begins-to-scale-market-fulfillment-centers Accessed May 13, 2021 21. Walker, E. at Walmart (2020). Hi, Tech: Walmart Announces New High-Tech Grocery Distribution Center. Available at: https://corporate.walmart.com/newsroom/2018/10/18/hi-tech-walmart-announces-new-high-tech-grocery-distribution-center Accessed May 13, 2021 22. Goodchild, A. at ASCM (2019). Parcel Lockers Ease Urban Gridlock. Available at: https://www.ascm.org/ascm-insights/parcel-lockers-ease-urban- gridlock/ Accessed May 13, 2021 23. Jabil (2021). How Autonomous Robots Can Reform Retail Operations. Available at: https://www.jabil.com/blog/autonomous-robots-retails-new-secret- weapon.html Accessed May 13, 2021 SLIDE | 13 SOURCES (2/3)
- 14. 24. Retail Business Services (2019). Nearly 500 Robots, Powered by Retail Business Services and Badger Technologies, Hit the Floor at Ahold Delhaize USA’s GIANT/MARTIN’S and Stop & Shop Brands. Available at: https://www.retailbusinessservices.com/news-releases/news-release-details/nearly-500- robots-powered-retail-business-services-and-badger Accessed May 13, 2021 25. Smith, M. at Walmart (2020). New Checkout Experience Seeks to Eliminate the Wait and Add Options at the Register. Available at: https://corporate.walmart.com/newsroom/2020/06/30/new-checkout-experience-seeks-to-eliminate-the-wait-and-add-options-at-the-register Accessed May 13, 2021 26. ThreeKit (2021). 20 Augmented Reality Statistics You Should Know in 2021. Available at: https://www.threekit.com/20-augmented-reality-statistics-you- should-know-in-2020 Accessed May 13, 2021 27. Williams, R. at Marketing Dive (2019). 52% of retailers feel ill-prepared to support emerging mobile tech, study says. Available at: https://www.marketingdive.com/news/52-of-retailers-feel-ill-prepared-to-support-emerging-mobile-tech-study-s/560947/ Accessed May 13, 2021 28. Tode, C. at Retail Dive (2021). Walmart embraces augmented reality to enhance in-store shopping. Available at: https://www.retaildive.com/ex/mobilecommercedaily/walmart-embraces-augmented-reality-to-enhance-in-store-shopping Accessed May 13, 2021 29. Tode, C. at Retail Dive (2021). Walmart taps augmented reality to reward customers. Available at: https://www.retaildive.com/ex/mobilecommercedaily/walmart-rewards-customers-with-augmented-reality-scavenger-hunt Accessed May 13, 2021 30. Crecelius, J. at Walmart (2020). In This New Era of Retail, We’re Testing New Ways to Operate, and It’s the Customer Who Wins. Available at: https://corporate.walmart.com/newsroom/2020/10/29/in-this-new-era-of-retail-were-testing-new-ways-to-operate-and-its-the-customer-who-wins Accessed May 13, 2021 31. eMarketer (2021). Worldwide ecommerce will approach $5 trillion this year. Available at: https://www.emarketer.com/content/worldwide-ecommerce-will- approach-5-trillion-this-year Accessed May 13, 2021 32. Oberlo (2021). Ecommerce Sales by Country In 2021. Available at: https://www.oberlo.com/statistics/ecommerce-sales-by-country Accessed May 13, 2021 33. eMarketer (2020). Top 10 Countries, Ranked by Retail Ecommerce Sales, 2020 & 2021. Available at: https://www.emarketer.com/chart/242909/top-10- countries-ranked-by-retail-ecommerce-sales-2020-2021-billions-change Accessed May 13, 2021 34. Identity Theft Resource Center (2020). 2020 in Review. Data Brach Report. Available at: https://notified.idtheftcenter.org/s/ Accessed May 13, 2021 SLIDE | 14 SOURCES (3/3)
- 15. Ovidijus.Jurevicius@strategicmanage mentinsight.com Strategic Management Insight WALMART INC. SWOT ANALYSIS IS THE PROPERTY OF STRATEGIC MANAGEMENT INSIGHT AND ITS CONTENTS MAY NOT BE COPIED OR EMAILED TO MULTIPLE SITES OR POSTED TO A LISTSERV WITHOUT THE COPYRIGHT HOLDER'S EXPRESS WRITTEN PERMISSION. HOWEVER, USERS MAY PRINT, DOWNLOAD, OR EMAIL ARTICLES FOR INDIVIDUAL USE. THANK YOU MADE BY OVIDIJUS JUREVICIUS