Successful businesses regularly analyze their processes to ensure they’re operating

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Successful businesses regularly analyze their processes to ensure they’re operating as efficiently as possible and maintaining their competitive advantages.
Although you can assess a company in many ways, a common technique is the SWOT analysis. In this assignment, you’ll practice using SWOT analysis to better
understand the factors involved in making business decisions that promote a sustainable competitive advantage.
Note: You can view sample SWOT analyses by visiting the University Library > Databases > B > Business Source Complete: SWOT Analyses.
Select and research a company from the 2020 Fortune 500 list that demonstrates a sustainable competitive advantage in the marketplace. You may also choose
to use your current employer or a company you’ve worked for in the past as long as you have sufficient data to complete the assignment.
Evaluate the selected company’s sustainable competitive advantage using the SWOT analysis technique.
Write a 700- to 1000-word modified SWOT analysis that includes the following:
• An introduction with a detailed description of the company
• A SWOT analysis diagram that includes strengths, weaknesses, opportunities, and threats
• An evaluation of how specific internal factors (strengths and/or weaknesses) support and/or promote a competitive advantage. Examples may include:
• Financial, physical, or human resources
• Access to natural resources, trademarks, patents, or copyrights
• Current processes (employee programs or software systems)
• An evaluation of how specific external factors (opportunities and/or threats) support and/or promote a competitive advantage. Examples may include:
• Market trends (new products or technology advancements)
• Economic trends (local and/or global)
• Demographics
• Regulations (political, environmental, or economic)
• A conclusion with an evaluation of how the company has retained its competitive advantage

Sample Solution

Strengths

  • Global reach: Walmart is the world’s largest retailer, with operations in 27 countries. This gives it a significant advantage over its competitors, who are often limited to a single country or region.
  • Low prices: Walmart is known for its low prices, which attract customers from all walks of life. This is due in part to the company’s efficient supply chain and its ability to negotiate favorable prices with suppliers.
  • Brand recognition: Walmart is one of the most recognizable brands in the world. This gives it a significant advantage in terms of customer loyalty and market share.
  • Strong financial performance: Walmart has consistently generated strong financial results over the past several years. This gives the company the resources it needs to invest in new growth opportunities and to weather economic downturns.

Weaknesses

  • Competition: Walmart faces increasing competition from other retailers, such as Amazon and Target. These companies are using technology to disrupt the retail industry, and they are making it more difficult for Walmart to maintain its price advantage.
  • Labor practices: Walmart has been criticized for its labor practices. The company has been accused of paying its employees low wages and of providing them with poor working conditions. This could damage Walmart’s reputation and make it more difficult to attract and retain employees.
  • International expansion: Walmart’s international expansion has not been as successful as its domestic operations. The company has faced challenges in adapting its business model to different cultures and markets.

Opportunities

  • E-commerce: Walmart is expanding its e-commerce business in an effort to compete with Amazon. The company has made a number of acquisitions in this area, and it is investing heavily in its online infrastructure.
  • International expansion: Walmart is still expanding its international operations. The company is targeting emerging markets with high growth potential.
  • New product development: Walmart is investing in new product development in an effort to stay ahead of the competition. The company is launching new private label brands and is expanding its product assortment.

Threats

  • Economic downturn: A recession could hurt Walmart’s sales and profits. The company’s low-income customers would be particularly vulnerable to economic hardship.
  • Technology disruption: Technology could continue to disrupt the retail industry. Walmart needs to stay ahead of the curve in terms of technology adoption in order to maintain its competitive advantage.
  • Changing consumer preferences: Consumer preferences are changing, and Walmart needs to adapt its business model to meet these changes. For example, consumers are increasingly demanding more healthy and sustainable products.

Overall, Walmart is a strong company with a sustainable competitive advantage. However, the company faces a number of challenges, including increasing competition, labor practices, and international expansion. Walmart needs to address these challenges in order to maintain its position as a leading retailer.

Conclusion

The SWOT analysis of Walmart shows that the company has a number of strengths, including its global reach, low prices, brand recognition, and strong financial performance. However, the company also faces a number of challenges, including increasing competition, labor practices, and international expansion. Walmart needs to address these challenges in order to maintain its position as a leading retailer.

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