Wal-Marts Internal and SWOT Analysis - Essay Example

Different locations usually have different laws that govern labor issues. That implies that there are some regions that will employ lower wage rates as compared to other regions. That is beneficial to Wal-Mart because the profit margin of the company will increase. There are some regions that also have cheaper raw materials. That means that the cost of sales would reduce, and that will add to the profitability of the company.

Wal-Mart Company also has a number of intangible assets that give a competitive advantage to the business. The company has a reputation that is associated with products that are of high quality. A good reputation will add to the goodwill of the company and that would be advantageous in the running of the company operations. Quality products will lead to the emergence of brand royals. Brand royals will always prefer the products that are sold by Wal-Mart and that usually adds to the profitability of the company.

Wal-Mart has a management team that carries out its responsibilities in a manner that is useful in selling out the name of the company. The management team usually equips the company with the ability to coordinate activities that are decentralized in many locations. That ability creates organizational value. Value chain analysis A value chain is used to describe a way in which the activities of a business can transform inputs into outputs. A customer usually gets the value from low costs, differentiated products, and the customers accessing their services within the speculated time period.

Wal-Mart has the ability to meet the needs of the customers quickly and with convenience. The company has many stores in many locations and that has made it possible for customers to access the products sold by the company with ease. The accessibility of the company products by the customers of the company is strong and that can be used as a competitive advantage over the competitors to the company (googlefinance.com). The company tries to lower its costs by using improved processes. The processes used should be efficient enough to ensure that there are no extra costs that are incurred as a result of activities that are inefficient.

The company also differentiates its products. The products are differentiated according to location and the economic strength of the residents. The company also has a way that ensures that customers get access to their products within the required time period and in the required duration. The company also has a feedback system that ensures that customers are able to air their views in regard to the operations of the company.