Weaknesses of Walmart Case Study

Weaknesses of Walmart
Name
Institution
Date
Since Walmart was founded in 1962, it has grown in size to over 11, 000 stores across different countries with a total number of 71 brands. In addition to its presence in the different countries, it also brands under different names. It is also reputed as the biggest retailer and private employer with over 2 million employees in the world. A family owning the business controls more than 50 percent of shares. In the US alone, it is the largest grocery retailer (Roberts & Berg, 2012).
Walmart has several weaknesses that affect its operations.
Saturation – Walmart already holds a market leading position in the vast majority of US trading regions (Roberts & Berg, 2012). Despite having widespread presence in the US and many advantages due to its use of technology in production and operations, this could leave the store weak in some areas that may seek special attention. This is mainly because the administrative faction controls a huge span of area which may be difficult to concentrate on specialized needs. On the other hand, there are supercenters in every state in the US which may pose a threat to its market share (Roberts & Berg, 2012).
Labor related lawsuits are a common phenomenon to the Walmart business. To deal with the competition, especially with the dollar store, Walmart customers as well as the employees have been forced to bear the brunt of these loses. Most workers may complain of low pay because Walmart has been forced to cut the prices of their products to match the competitive prices of the dollar store (Scott & Hawkins, 2011).
While a diversity of products may seem like an advantage to the stores, it has grown to be one of the biggest weaknesses. This is because; few competitors who are specialized in some of the products Walmart offers are able to produce better goods in terms o...