Walmart's Business Strategy and Financial Analysis Based on Porter's Five Forces Analysis Model and SWOT

Abstract

As one of the world's largest retailers, Walmart holds a crucial position in the retail industry. This article conducts an analysis of Walmart's operational performance to gain an in-depth understanding of its competitive position in the global retail market and identify potential growth opportunities and challenges. Focusing on industry analysis, company strategy, and comprehensive financial performance analysis of Walmart, the study employs SWOT analysis, value chain analysis, and Porter's Five Forces model to dissect Walmart's strategic and asset composition changes, shedding light on its profitability. While Walmart has consistently experienced revenue growth, it faces challenges in maintaining profitability. The debt-to-equity ratio displays a positive trend, indicating a balanced capital structure. However, the liquidity ratio has slightly decreased, warranting attention. The article recommends optimizing inventory management, strengthening digital marketing efforts, and prudently managing long-term debt to enhance Walmart's financial performance and competitive advantage. This article conducts a study of Walmart's operational performance within the retail industry, aiming to provide insights and support for investors and decision-makers in making strategic choices.