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V Wal-Mart is a powerful retail brand. It has a reputation for value for money,
convenience and a wide range of products all in one store.
V Wal-Mart has grown substantially over recent years, and has experienced global
expansion (for example its purchase of the United Kingdom based retailer ASDA).

V The company has a core competence involving its use of information technology to
support its international logistics system. For example, it can see how individual
products are performing country -wide, store-by-store at a glance. IT also supports
Wal-Mart's efficient procurement.
V A focused strategy is in place for human resource management and development.
People are key to Wal -Mart's business and it invests time and money in t raining
people, and retaining a developing them.

  

V Wal-Mart is the World's largest grocery retailer and control of its empire, despite its IT
advantages, could leave it weak in some areas due to the huge span of control.
V Since Wal-Mart sell products across many sectors (such as clothing, food, or
stationary), it may not have the flexibility of some of its more focused competitors.
V The company is global, but has has a presence in relatively few countries Worldwide.

 

 

V To take over, merge with, or form strategic alliances with other global retailers,
focusing on specific markets such as Europe or the Greater China Region.
V The stores are currently only trade in a relatively small number of countries.
Therefore there are tremendous opportunit ies for future business in expanding
consumer markets, such as China and India.
V New locations and store types offer Wal -Mart opportunities to exploit market
development. They diversified from large super centres, to local and mall -based
sites.
V Opportunities exist for Wal -Mart to continue with its current strategy of large, super
centres.

  

V Being number one means that you are the target of competition, locally and globally.
V Being a global retailer means that you are exposed to political pro blems in the
countries that you operate in.
V The cost of producing many consumer products tends to have fallen because of
lower manufacturing costs. Manufacturing cost has fallen due to outsourcing to low -
cost regions of the World. This has lead to price co mpetition, resulting in price
deflation in some ranges. Intense price competition is a threat.

'Wal-Mart Stores, Inc. is the world's largest retailer, with $256.3 billion in sales in the fiscal
year ending Jan. 31, 2004. The company employs 1.6 million ass ociates worldwide through
more than 3,600 facilities in the United States and more than 1,570 units.

McDonalds Swot Analysis


Mc Donald¶s Case SWOT Analysis:

Strengths
1. Strong Global presence: McDonald¶s is the leading fast -food organization in the
world with 32,060 restaurants serving burgers and fries in 118 countries.
2. Worldwide brand image and reputation: It has the same strategy in every market all
over the world, but also takes into consideration the local beliefs and likes of p eople of the
respective country. That is the reason why, it is considered most famous and loved brands in
the world.
3. Innovative products to attract the customers: McDonald¶s launches several different
innovative products regularly to attract the customers such as: happy meals for kids, giving
away small toys with the kid¶s meal, organizing birthday parties and other events in the
stores for the customers, considering the local favorites such as Aloo tikki burger and
Paneer salsa wrap in India.
4. McDonald¶s offers the consumers reasonable value, great service and choice.

Weaknesses

1. Quality issues across the franchise network: Customers require the same quality of food
in all the franchises which McDonald¶s fail to achieve.
2. The core products of McDonald¶s does not meet the trend towards healthier lifestyles of
adults and kids.
3. Poor marketing: McDonald¶s has incidents of poor advertising in China and Hong Kong
which was considered offensive by the locals which affects the bra nd image.
4. Poor management: Failure to respond to the changing needs and demands of the
customers.
Opportunities
1. Healthy lifestyle food segment: Introduction of a new segment which supports the latest
trend of health conscious groups.
2. Growth of fast-food industry.
3. Joint Ventures: Joint ventures with the supermarkets such as Costco.
4. Wi-Fi Internet, play zones for kids at all the franchises.
5. Using more environment friendly products and processes can help them achieve socially
responsible tag.

Threats
1. Growing awareness...

External Environments analysis of a fast food chain ( McDonald¶s) thorough porter¶s


Five forces Model:

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