SWOT ANALYSIS ON Sam's West, Inc (Sam's Club)

abhishreshthaa

Abhijeet S
Sam's Club is a chain of membership-only retail warehouse clubs owned and operated by Wal-Mart Stores, Inc., founded 1983 and named after Wal-Mart founder Sam Walton. As of January 31, 2009 (2009 -01-31), the Sam's Club chain operated in 48 of the 50 U.S. States,[1] and, as of 2008[update], served more than 47 million U.S. members. Sam's Club ranks second in sales volume among warehouse clubs behind Costco Wholesale, despite the fact that Sam's has more retail locations.

As of January 31, 2009 (2009 -01-31)[update], Sam's Club operated 602 membership warehouse clubs in 48 U.S. states (Oregon and Vermont are the only states without a Sam's Club), as well as four other territories: Brazil, China, Mexico and Puerto Rico. Locations typically range in size from 70,000–190,000 sq ft (6,500–18,000 m2), with an average club size of approximately 133,000 sq ft (12,400 m2).


Strengths

* Leverages Wal-Mart
* Data mining through Retail Link
* Limited amount of direct competitors (Costco, BJs)
* Serves business members' needs better than competition

Weaknesses

* Low asset productivity
* Real estate
* Overlap with Wal-Mart Supercenter
* Inventory management

Opportunities

* Member segmentation improvements
* Improve SKU assortment
* Improve mix of business vs. personal items inside its store
* e-Commerce



Threats

* Macroeconomic conditions affecting discretionary consumer spending
* Competition with Wal-Mart
* Costco, other retailers
* Being able to execute against member segmentation strategy
 
Re: SWOT ANALYSIS ON Sam's Club

SWOT Analysis Definition BY Philip Kotler

SWOT is a technique for analysing the internal and external environments of an organisation through the identification and assessment of its strengths, weaknesses, opportunities, and threats (SWOT). SWOT analysis entails a distillation of the findings of an internal and external audit that draws attention, from a strategic perspective, to the critical organisational strengths and weaknesses and the opportunities and threats facing the organisation (Kotler and Armstrong, 2011).
 
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