Dr. John W.

Lang
SWOT Example - Wal-Mart - 2000
Vision Statement

 To become the worldwide leader in retailing

Mission Statement Components

 1. Customers
 2. Products or services
 3. Markets
 4. Technology
 5. Concern for survival, profitability, growth
 6. Philosophy
 7. Self-concept
 8. Concern for public image
 9. Concern for employees
Mission Statement

 Our fist responsibility is to provide all consumers (1) the best

products and services with guaranteed satisfaction under
one roof. Wal-mart provides a wide array of products like
toys, electronics, groceries, jewelry, ladies, men, and
children’s apparel, and hard goods (2) at reasonable prices.
We will continue to offer scholarships to deserving high-
school graduates (8) in hopes of providing students with a
well-deserved education.
Mission Statement

 Consumers have been conveniently provided not only with

the use of on-line shopping (4) to show without ever leaving
home, but also with the concept of “one-stop shopping.”
The Wal-mart team is devoted to everything that Wal-mart
has accomplished as a universal competitor (3). We are
dedicated in recruiting rewarding, and retaining employees
of good moral standing (9) by providing benefits for
excellent performance, providing clean environments to
work in, and by providing equal-opportunity for all
individuals (7).
Mission (Cont.)

 We will continue to offer the highest quality

products at the lowest price (6) to strive to be
the best in the retail industry (5).
Opportunities
 Consumers want ease of shopping
 Internet shopping growing
 Dollar value increasing
 Similar shopping patterns worldwide
 Retail sales expected to increase
 Environment conscious consumers
 Elderly population growing
 Asian market virtually untapped by retail
 European Market untapped by retail
Threats

 Regulation of Wal-Mart pharmacies

 Small towns do not want entry of Wal-Mart
 Bad media exposure for Kathie Lee Brand
 Variety of competition nationally, regionally and locally
 Substitute products more easily because of intense
competition
Competitive Profile Matrix

Wal-Mart K-Mart JC Penny

Critical Success Weight Rating Weighted Rating Weighted Rating Weighted Score
Factors Score Score
Market Share 0.20 3 0.60 2 0.40 2 0.40
Price 0.30 4 1.20 2 0.60 1 0.30
Competitiveness
Financial Position 0.10 4 0.40 2 0.20 2 0.20
Product Quality 0.20 2 0.40 2 0.40 3 0.60
Consumer Loyalty 0.20 2 0.40 2 0.40 2 0.40
Total 1.00 3.00 2.00 1.90
External Factor Evaluation (EFE) Matrix

Key External Factors Importance

Consumers want ease of shopping
Internet shopping growing
Dollar value increasing
Similar shopping patterns worldwide
Retail sales expected to increase
Environment conscious consumers
Elderly population growing
Asian market virtually untapped by
retail
European Market untapped by retail
Regulation of Wal-Mart pharmacies
Small towns do not want entry of
Wal-Mart
Bad media exposure for Kathie Lee
Brand
Variety of competition nationally,
regionally and locally
Substitute products more easily
because of intense competition
Strengths
 Customer oriented
 SAM’S Club customers able to buy in bulk
 Supercenters offer one stop shopping
 Satisfaction guaranteed programs promoting customer goodwill
 Buy from local merchants when possible
 Stock ownership and profit-sharing with employees
 Leads industry in information technology
 Ongoing development of its employees
 Strong community involvement
Weaknesses
 No formal mission statement
 Membership only for SAM’S Club
 Keep poor performing employees on hand
 Old fashioned store policies
 Few women and minorities in top management
Internal factor evaluation Model (IFE)
Matrix
Key Internal Factors Importan
ce

Strengths

Customer oriented
SAM’S Club customers able to buy in bulk
Supercenters offer one stop shopping
Satisfaction guaranteed programs
promoting customer goodwill
Buy from local merchants when possible
Stock ownership and profit-sharing with
employees
Leads industry in information technology
Ongoing development of its employees
Strong community involvement

Weaknesses

No formal mission statement

Membership only for SAM’S Club
Keep poor performing employees on hand
Old fashioned store policies
Few women and minorities in top
management
TOWS Analysis

Strengths Weaknesses
1. Customer oriented 1. No formal mission statement
2. SAM’s Club consumers able to 2. Membership only for SAM’S
buy in bulk Club
3. Supercenters offer one stop 3. Keep poor performing
shopping employees on hand
4. Satisfaction guaranteed 4. Old fashioned store policies
programs promoting customer 5. Few women and minorities in
goodwill top management
5. Buy from local merchants when
possible
6. Stock ownership and profit-
sharing with employees
7. Leads industry in information
technology
8. Ongoing development of its
employees
9. Strong community involvement
TOWS Analysis continued
Opportunities S-O Strategies W-O Strategies
1. Consumers wan ease of 1. Advertise more for shopping 1. Improve employment
shopping on-line (S8, O2) techniques to hire and keep the
2. Internet shopping growing best performing employees
3. Dollar value increasing 2. Expand internationally because (W3, W5, O6)
4. Similar shopping patterns of similar shopping patterns
worldwide (S3, O4, O8)
5. Retail sales expected to increase
6. Environment conscious
consumers
7. Elderly population growing
8. Asian Market virtually untapped
by retail
9. European Market untapped by
retail
Threats S-T Strategies W-T Strategies
1. Regulation of Wal-Mart 1. Buy from local merchants to 1. Allow consumers to buy in
pharmacies promote unity in the community smaller bulk without having
2. Small towns do not want entry (S5, T4) membership to SAM’S Club (W2,
of Wal-Mart T5)
3. Bad media exposure for Kathie 2. Build more Supercenters for the
Lee Brand increased demand for one stop
4. Variety of competition shopping (S3, T4)
nationally, regionally and
locally
5. Substitute products more easily
because of intense competition