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Matrix

This document contains an analysis of Walmart's external and internal factors through various matrices: The EFE Matrix scores Walmart's external opportunities and threats as a 3, indicating a stable external environment. The IFE Matrix scores Walmart's internal strengths and weaknesses as 3.04, suggesting it has some weaknesses to address. Two strategic options are quantitatively evaluated: expanding into European countries through joint ventures scores higher at 3.4; and pursuing backward integration scores 3.22. Both options align well with Walmart's strengths and opportunities while mitigating external threats.

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Umair Khan
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0% found this document useful (0 votes)
1K views12 pages

Matrix

This document contains an analysis of Walmart's external and internal factors through various matrices: The EFE Matrix scores Walmart's external opportunities and threats as a 3, indicating a stable external environment. The IFE Matrix scores Walmart's internal strengths and weaknesses as 3.04, suggesting it has some weaknesses to address. Two strategic options are quantitatively evaluated: expanding into European countries through joint ventures scores higher at 3.4; and pursuing backward integration scores 3.22. Both options align well with Walmart's strengths and opportunities while mitigating external threats.

Uploaded by

Umair Khan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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EFE MATRIX

Key External Factors Weight Rate Score


Opportunities
Online shopping growth 0.14 4 0.56
Promote greenworld 0.08 2 0.16
Free trade 0.12 3 0.36
Rising acceptance of own label 0.14 4 0.56
Recovery of global economy 0.1 3 0.3

Threats
Increasing competition with online competitors 0.12 3 0.36
Technological Revolution 0.1 3 0.3
Tax and Tariffs 0.06 2 0.12
Local community critics 0.06 2 0.12
Regulations of respective countries 0.08 2 0.16

Total 1 3
IFE MATRIX
Key Internal Factors Weight Rate Score
Strengths
Shopping under one roof 0.15 4 0.6
Wide variety of merchandise 0.13 4 0.52
Stores in all 50 States 0.12 4 0.48
New concept of Supermarkets 0.1 3 0.3
Great employee benefits 0.1 4 0.4

Weaknesses
Lack of formal mission statement 0.08 2 0.16
Lack of R&D Facility 0.06 1 0.06
Centralized management 0.08 2 0.16
Little Differentiation 0.08 2 0.16
Resistance of management for putting women in BOD. 0.1 2 0.2

Total 1 3.04
COMPETITIVE PROFILE MATRIX
Walmart Target Costco
Critical Success Factor Weight Rating Score Rating Score Rating Score
Advertising 0.1 4 0.4 3 0.3 2 0.2
Service/Product Quality 0.09 3 0.27 4 0.36 2 0.18
Price 0.1 4 0.4 2 0.2 3 0.3
Management 0.03 3 0.09 2 0.06 1 0.03
Financial Position 0.09 4 0.36 2 0.18 3 0.27
Customer Loyalty 0.1 4 0.4 2 0.2 3 0.3
Product Line 0.1 4 0.4 3 0.3 2 0.2
Market Share 0.06 4 0.24 3 0.18 2 0.12
Customer Service 0.09 2 0.18 3 0.27 4 0.36
Technology 0.1 4 0.4 3 0.3 2 0.2
Employees 0.05 2 0.1 2 0.1 3 0.15
Global Expansion 0.09 4 0.36 1 0.09 2 0.18
Total 1 3.6 2.54 2.49
SO Strategies WO Strategies
Opportunities

Walmart has to set a clear mission


Add more additional stores in
international market where the company statement as there is lot of potential
increase in retail business in the future
has more brand recognition and take and to increase the revenue for the
advanntage of economy. (S3, O1, O4) betterment of economy. (W1, O5)

ST Strategies WT Strategies

Improve R&D to understand foreign


Massive competition against the rivals
Threats

markets before entering. This is reduce


can be avoided by offering differentiated
products. (S2, T1) the effect of difference in opinions,
values, and people. (W2, T4)
Internal Strategic Position External Strategic Position
Financial Position Stability Position
Investment Returns 4 Technological Changes -3
Inventory Turnover 3 Rate of Inflation -2
Operating Profit 4 Price Range of Competitors -2
Liquidity 6 Demand Variability -4
Profit Margin 6 Risk Involved in Business -3

Average 4.6 Average -2.8

Total Y-Axis Score


Average Financial Position Score 4.6
Average Stability Position Score -2.8
Total 1.8

Competitive Position Industry Position


Market Share -2 Growth Potential 5
Product Range -2 Profit Potential 6
Product Quality -4 Financial Stability 5
Product Life Cycle -5 Resource Utilisation 4
Customer Loyalty -4 External Leverage 5

Average -3.4 Average 5

Total X=Axis Score


Average Competitive Position Score -3.4
Average Industry Position Score 5
Total 1.6

FP and IP= 1(Worst) and 7(Best)


SP and CP= -1(Best) and -7(Worst)
Supercenters: Meat, baked goods, frozen food,dairy products, seafood, etc.
Neighbourhood: Full lines of groceries, pharmaceuticals,health and safety aids, etc
Sam's Club: Membership stores, sell in large quantity.
Discount Stores: Groceries, Pharmacy, Fast Food etc.
Division IFE Score EFE Score
1 3.04 3
Walmart falls in Cell I, that suggests and expects the company to grow and build.
QUANTITATIVE STRATEGIC PLANNING MATRIX
Enter European Countries
Backward Integration through Joint Ventures
Key Factors Weight AS TAS AS TAS
Opportunities
Trend towards online shopping 0.15 3 0.45 3 0.45
Potential of European markets 0.13 2 0.26 4 0.52
Customers of higher income groups 0.1
Trend towards one stop shop 0.07
Trend in sustainability awareness 0.05 2 0.1 4 0.2

Threats
Fast changing technology 0.2 3 0.6 2 0.4
Fierce price competition in retail
industry 0.13 2 0.26 2 0.26
High bargaining power of customers 0.07
Instabilities due to external factors 0.05 3 0.15 2 0.1
Laws requiring more investments to
employee benefits 0.05
1

Strengths
Well established brand awareness 0.18 3 0.54 2 0.36
Cost leadership 0.13 2 0.26 3 0.39
Continuous growth 0.1 2 0.2 4 0.4
Control over suppliers 0.09
Profitable organisation 0.05

Weaknesses
Lack of presence in many developed
countries 0.13
Failure of entering foreign countries 0.1
No formal mission statement 0.08 2 0.16 2 0.16
Continuous products recalls 0.08 3 0.24 2 0.16
Everyday low prices could be connected
to poor quality 0.06
Total 1 3.22 3.4

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