Critical Success Factor Analysis for Wal-Mart

Critical Success Factors Weight Rating Weighted score Comments

Low pricing 0.15 5 0.75

Key success factors
Low cost 0.12 4 0.48
Easy access 0.10 4 0.40
Convenience
One stop shopping 0.10 3 0.30
Global business 0.04 2 0.08 Increase revenue
Customer service 0.10 3 0.30
Strong management team 0.08 3 0.24 Efficiency
Variety of merchandise 0.09 3 0.27 Variety of products
24 hour service 0.09 4 0.36
Information technology use 0.08 4 0.32 Latest technology
Community involvement 0.05 3 0.15 Environment friendly

Total 1 3.65

Internal Factor Analysis Summary (IFAS) Table

Internal Factors Wal-Mart Target
Weight Rating Weighted score Rating Weighted
score
Strengths:
Low pricing 0.10 4 0.40 3 0.30
Low cost 0.07 4 0.28 3 0.21
Technology usage 0.08 4 0.32 4 0.32
Global presence 0.05 2 0.10 1 0.05
Strong management team 0.07 3 0.21 3 0.21
24 hour service 0.08 4 0.32 1 0.08
Strong supply chain 0.06 3 0.18 3 0.18
Financial position 0.04 4 0.16 3 0.12
Weaknesses:
Quality 0.15 4 0.60 5 0.75
Globalization 0.08 4 0.32 1 0.08
Online marketing 0.14 3 0.42 4 0.56
Problems with suppliers 0.08 3 0.24 4 0.32

Total 1 3.55 3.18

External Factor Analysis Summary (IFAS) Table

External Factors Wal-Mart Target
 Weight Rating Weighted score Rating Weighted
score
Opportunities:
Poor economic conditions 0.08 4 0.32 3 0.24
Acquisition and mergers 0.10 3 0.30 2 0.20
Internet marketing 0.11 4 0.44 4 0.44
Expansion to new countries 0.09 4 0.36 1 0.09
Rise in sustainability concerns 0.06 3 0.18 4 0.24
Success of supercenters 0.08 4 0.32 1 0.08
Expansion to new segments 0.07 3 0.21 4 0.28
Threats:
Government regulations 0.10 4 0.40 5 0.50
Poor company image 0.09 3 0.27 4 0.36
Competition 0.08 4 0.32 3 0.24
Recession 0.06 3 0.18 4 0.24
Resistance of small retailers 0.08 4 0.32 3 0.24

Total 1 3.62 3.15

Strategic Factors Analysis Summary (SFAS) Matrix

Strategic Factors Weight Rating Weighted score Duration
Short Intermediate
Low cost 0.10 4 0.40
Low pricing 0.10 4 0.40 *
Quality 0.11 4 0.44
Online marketing 0.10 3 0.30 *
Internet marketing 0.12 4 0.48 *
Acquisitions and mergers 0.11 3 0.33
Expansion to new countries 0.09 4 0.36
Government regulations 0.10 4 0.40 *
Poor company image 0.09 3 0.27 *
Recession 0.08 3 0.24 *

Total 1 3.62
 Kmart
Rating Weighted
score

4 0.40
3 0.21
3 0.24
4 0.20
3 0.21
1 0.08
2 0.12
3 0.12
0.00
4 0.60
3 0.24
2 0.28
4 0.32

3.02

Kmart
 Rating Weighted
score

3 0.24
5 0.50
4 0.44
2 0.18
3 0.18
1 0.08
3 0.21

4 0.40
3 0.27
4 0.32
3 0.18
2 0.16

3.16

Duration
Long
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