Wal-Mart’s major weaknesses might include the problems of attracting and holding the labor force, lack of flexibility in following the popular trends, the limitation of the supply to the low-cost products, not the customer’s demand, inefficient store management and insufficiently considered growth plan.
If we analyze the Wal-Mart’s internal activities in terms of the primary and the support components, one would find that the Research and Development (R&D), Production (manufacturing), Marketing and Sales, Customer Service are rather a weakness that a strength.
Conquering foreign markets, especially Asian-Pacific ones will need careful consideration of the strategies and approaches, but the initiative would most probably be extremely rewarding.
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Still, despite all the troubles and threats the company faces, it has certain impressive opportunities, including the amount to capital and facilities, with a proper approach to the management of these possessions, Wal-Mart could significantly improve the business models and the level of performance of these units.
Concentration of the existing businesses, their improvement, is probably the greatest business opportunity for Wal-Mart nowadays.
This lead to higher unemployment levels in the region.
The number and the quality of jobs Wal-Mart provides do not really compensate the losses. With this practice in force and the continuing growth (of 6000 superstores in a couple of years), Wal-Mart is facing a serious threat of underemployment or a risk of the need to increase the compensation levels.
Some manufacturers care for their name and image so much, they have to refuse to cooperate with the U. largest retailer in order to preserve the initial quality of the product.
The suppliers are also not very happy with the Wal-Mart’s recent Asia-oriented supply chain – Chinese manufacturers are able to keep the costs impressively low and even the import burdens do not impede the joy of the deal.