Rise of Wal-Mart Stores, Inc. 1962-1987 SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Rise of Wal-Mart Stores, Inc. 1962-1987
It is 1988 and David Glass has just taken over as CEO from the legendary Sam Walton at Wal-Mart. Meanwhile, Joe Antonini has just taken the CEO position at Wal-Mart's arch rival, Kmart. Although Wal-Mart is still well behind Kmart, it appears to be in great shape and is catching up fast. Glass seems committed to continuing with "business as usual." Is this enough? What might Kmart do to stop him?
Swot Analysis of "Rise of Wal-Mart Stores, Inc. 1962-1987" written by Travis Haglock, John R. Wells includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Kmart Wal facing as an external strategic factors. Some of the topics covered in Rise of Wal-Mart Stores, Inc. 1962-1987 case study are - Strategic Management Strategies, Innovation, Strategy execution and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Rise of Wal-Mart Stores, Inc. 1962-1987 casestudy better are - – there is backlash against globalization, banking and financial system is disrupted by Bitcoin and other crypto currencies, supply chains are disrupted by pandemic , competitive advantages are harder to sustain because of technology dispersion, increasing inequality as vast percentage of new income is going to the top 1%, cloud computing is disrupting traditional business models, challanges to central banks by blockchain based private currencies,
increasing energy prices, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Rise of Wal-Mart Stores, Inc. 1962-1987
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Rise of Wal-Mart Stores, Inc. 1962-1987 case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Kmart Wal, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Kmart Wal operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Rise of Wal-Mart Stores, Inc. 1962-1987 can be done for the following purposes –
1. Strategic planning using facts provided in Rise of Wal-Mart Stores, Inc. 1962-1987 case study
2. Improving business portfolio management of Kmart Wal
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Kmart Wal
Strengths Rise of Wal-Mart Stores, Inc. 1962-1987 | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Kmart Wal in Rise of Wal-Mart Stores, Inc. 1962-1987 Harvard Business Review case study are -
Highly skilled collaborators
– Kmart Wal has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Rise of Wal-Mart Stores, Inc. 1962-1987 HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Diverse revenue streams
– Kmart Wal is present in almost all the verticals within the industry. This has provided firm in Rise of Wal-Mart Stores, Inc. 1962-1987 case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Analytics focus
– Kmart Wal is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Travis Haglock, John R. Wells can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Low bargaining power of suppliers
– Suppliers of Kmart Wal in the sector have low bargaining power. Rise of Wal-Mart Stores, Inc. 1962-1987 has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Kmart Wal to manage not only supply disruptions but also source products at highly competitive prices.
Learning organization
- Kmart Wal is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Kmart Wal is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Rise of Wal-Mart Stores, Inc. 1962-1987 Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Strong track record of project management
– Kmart Wal is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Superior customer experience
– The customer experience strategy of Kmart Wal in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Organizational Resilience of Kmart Wal
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Kmart Wal does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to lead change in Strategy & Execution field
– Kmart Wal is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Kmart Wal in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High switching costs
– The high switching costs that Kmart Wal has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Training and development
– Kmart Wal has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Rise of Wal-Mart Stores, Inc. 1962-1987 Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Cross disciplinary teams
– Horizontal connected teams at the Kmart Wal are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Weaknesses Rise of Wal-Mart Stores, Inc. 1962-1987 | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Rise of Wal-Mart Stores, Inc. 1962-1987 are -
Low market penetration in new markets
– Outside its home market of Kmart Wal, firm in the HBR case study Rise of Wal-Mart Stores, Inc. 1962-1987 needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Skills based hiring
– The stress on hiring functional specialists at Kmart Wal has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Rise of Wal-Mart Stores, Inc. 1962-1987, in the dynamic environment Kmart Wal has struggled to respond to the nimble upstart competition. Kmart Wal has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High bargaining power of channel partners
– Because of the regulatory requirements, Travis Haglock, John R. Wells suggests that, Kmart Wal is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Rise of Wal-Mart Stores, Inc. 1962-1987 HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Kmart Wal has relatively successful track record of launching new products.
Lack of clear differentiation of Kmart Wal products
– To increase the profitability and margins on the products, Kmart Wal needs to provide more differentiated products than what it is currently offering in the marketplace.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Kmart Wal supply chain. Even after few cautionary changes mentioned in the HBR case study - Rise of Wal-Mart Stores, Inc. 1962-1987, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Kmart Wal vulnerable to further global disruptions in South East Asia.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Rise of Wal-Mart Stores, Inc. 1962-1987, it seems that the employees of Kmart Wal don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Slow decision making process
– As mentioned earlier in the report, Kmart Wal has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Kmart Wal even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
No frontier risks strategy
– After analyzing the HBR case study Rise of Wal-Mart Stores, Inc. 1962-1987, it seems that company is thinking about the frontier risks that can impact Strategy & Execution strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Kmart Wal is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Rise of Wal-Mart Stores, Inc. 1962-1987 can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities Rise of Wal-Mart Stores, Inc. 1962-1987 | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Rise of Wal-Mart Stores, Inc. 1962-1987 are -
Better consumer reach
– The expansion of the 5G network will help Kmart Wal to increase its market reach. Kmart Wal will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Kmart Wal to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Kmart Wal to hire the very best people irrespective of their geographical location.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Kmart Wal can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Developing new processes and practices
– Kmart Wal can develop new processes and procedures in Strategy & Execution industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Kmart Wal in the consumer business. Now Kmart Wal can target international markets with far fewer capital restrictions requirements than the existing system.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Kmart Wal can use these opportunities to build new business models that can help the communities that Kmart Wal operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Low interest rates
– Even though inflation is raising its head in most developed economies, Kmart Wal can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Kmart Wal can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Rise of Wal-Mart Stores, Inc. 1962-1987, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Kmart Wal is facing challenges because of the dominance of functional experts in the organization. Rise of Wal-Mart Stores, Inc. 1962-1987 case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Learning at scale
– Online learning technologies has now opened space for Kmart Wal to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Kmart Wal can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Kmart Wal can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Buying journey improvements
– Kmart Wal can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Rise of Wal-Mart Stores, Inc. 1962-1987 suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Threats Rise of Wal-Mart Stores, Inc. 1962-1987 External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Rise of Wal-Mart Stores, Inc. 1962-1987 are -
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Kmart Wal.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Increasing wage structure of Kmart Wal
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Kmart Wal.
Shortening product life cycle
– it is one of the major threat that Kmart Wal is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Consumer confidence and its impact on Kmart Wal demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Environmental challenges
– Kmart Wal needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Kmart Wal can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Easy access to finance
– Easy access to finance in Strategy & Execution field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Kmart Wal can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Kmart Wal with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Kmart Wal needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Kmart Wal can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Rise of Wal-Mart Stores, Inc. 1962-1987 .
Regulatory challenges
– Kmart Wal needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Strategy & Execution industry regulations.
High dependence on third party suppliers
– Kmart Wal high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Weighted SWOT Analysis of Rise of Wal-Mart Stores, Inc. 1962-1987 Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Rise of Wal-Mart Stores, Inc. 1962-1987 needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Rise of Wal-Mart Stores, Inc. 1962-1987 is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Rise of Wal-Mart Stores, Inc. 1962-1987 is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Rise of Wal-Mart Stores, Inc. 1962-1987 is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Kmart Wal needs to make to build a sustainable competitive advantage.
