Walmart - pestle, swot and porter\'s five forces analysis. PDF

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pestle, swot and porter's five forces analysis....

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SWOT Analysis ●

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Strength ○ The supply chain of Walmart is globally available. ○ Walmart’s retail chain has high efficiency because of the advanced technologies used for monitoring and controlling the movement of products from suppliers to its all stores in chains all around the world. ○ Walmart has With millions of customers visiting it every day, thus currently it is the most recognized retail brand in the world ○ Walmart is very efficiently managed its resources including information supply chain networks and distribution facilities etc. It has excellent operations in all locations. Weakness ○ Walmart has received lawsuits many times regarding its employee treatments. Low wages, inadequate healthcare facilities, and extremely poor working conditions are a few of the many issues that have been publicly criticized. ○ High extended size leads to the massive areas to control and thus makes it weak in few areas. Opportunities ○ Walmart can gain the opportunity by expanding its business to the markets which are not yet explored especially some developing nations. ○ Improving quality standards the trend of organized retail globally is up-to 85%, in developed markets. ○ 70% of the world's growth would come from developing Nations, where countries like India's growing purchasing power will contribute to the retail destinations.

● Threats ○ Being the world’s largest grocery retailer, it has always been a primary target for competitors. Target, who is Walmart’s direct competitor, offers similar products but they are of higher quality. ○ There are many complaints regarding some technical issues with Walmart’s website. The products are not listed in an organized way on the website, and it runs slowly. However, Amazon is known for its fast, effective, organized and nowadays smart algorithmic website, making an excellent online shopping experience for customers

PESTEL Analysis

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Political ○ The supply chain of Walmart is globally available. So political support globally could be an opportunity for them. ○ But political pressure can lead them to follow various rules as per different countries. One of the best examples could be of high wages.

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Economic ○ Economic changes can directly affect the revenue earned by Walmart a lot. ○ The growth of developing nations can be an opportunity for Walmart.

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Social ○ Walmart should keep in all the products as per different cultural diversities. ○ The demand for products in urban areas is different from other areas. So companies should make some strategy to get most of the consumer demands.

● Technology ○ Add Business analytics or big data. ○ Make much more user-friendly applications available all over the platforms. ● Ecological ○ Being the retailer chain, the only way Walmart could relate to the environment is through environmentally friendly products. ● Legal ○ Walmart should keep in mind the employment regulations. ○ Tax reforms and other legal reforms in different countries can affect them.

Porter Five Forces Analysis ●

Competitive rivalry or competition ○ A large number of firms in the retail market. ○ The large variety of retail firms. ○ The high variety of firms imposes challenges to Walmart. ○ The nearest and strongest rival for Walmart in India is Reliance Retail, who announced earlier their plans to open one hundred ‘Reliance Market’ wholesale stores in India by the year 2016, and had somehow already overtaken Walmart India in terms of a number of stores.  

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Bargaining power of buyers ○ A large population of buyers doesn’t have much pressure on retail firms like Walmart. Nor individual buyers have much effect. ○ The weak force of buyer diversity and the weak force of small individual purchases further weaken the bargaining power of customers.

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Bargaining power of suppliers ○ The large population of suppliers as having the weak potential to impact the company. ○ Individual suppliers have an almost negligible influence on large retailers like Walmart

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The threat of substitutes or substitution ○ Walmart offers a wide variety of goods and services that have a few or no substitutes.

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The threat of new entrants ○ Walmart should address the strong intensity of the threat of new entrants. ○ New retail firms can enter the market easily even in the presence of giants like Walmart. ○ Small retail shops can enter the market and compete with Walmart on the basis of convenience, location, specialty and other factors. SWOT Analysis

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Strength ○ The supply chain of Walmart is globally available. ○ Walmart’s retail chain has high efficiency because of the advanced technologies used for monitoring and controlling the movement of products from suppliers to its all stores in chains all around the world. ○ Walmart has With millions of customers visiting it every day, thus currently it is the most recognized retail brand in the world ○ Walmart is very efficiently managed its resources including information supply chain networks and distribution facilities etc. It has excellent operations in all locations. Weakness ○ Walmart has received lawsuits many times regarding its employee treatments. Low wages, inadequate healthcare facilities, and extremely poor working conditions are a few of the many issues that have been publicly criticized. ○ High extended size leads to the massive areas to control and thus makes it weak in few areas.

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Opportunities

Walmart can gain the opportunity by expanding its business to the markets which are not yet explored especially some developing nations. ○ Improving quality standards the trend of organized retail globally is up-to 85%, in developed markets. ○ 70% of the world's growth would come from developing Nations, where countries like India's growing purchasing power will contribute to the retail destinations. ○

● Threats ○ Being the world’s largest grocery retailer, it has always been a primary target for competitors. Target, who is Walmart’s direct competitor, offers similar products but they are of higher quality. ○ There are many complaints regarding some technical issues with Walmart’s website. The products are not listed in an organized way on the website, and it runs slowly. However, Amazon is known for its fast, effective, organized and nowadays smart algorithmic website, making an excellent online shopping experience for customers

PESTEL Analysis ●

Political ○ The supply chain of Walmart is globally available. So political support globally could be an opportunity for them. ○ But political pressure can lead them to follow various rules as per different countries. One of the best examples could be of high wages.

●

Economic ○ Economic changes can directly affect the revenue earned by Walmart a lot. ○ The growth of developing nations can be an opportunity for Walmart.

●

Social ○ Walmart should keep in all the products as per different cultural diversities. ○ The demand for products in urban areas is different from other areas. So companies should make some strategy to get most of the consumer demands.

● Technology ○ Add Business analytics or big data.

○ Make much more user-friendly applications available all over the platforms. ● Ecological ○ Being the retailer chain, the only way Walmart could relate to the environment is through environmentally friendly products. ● Legal ○ Walmart should keep in mind the employment regulations. ○ Tax reforms and other legal reforms in different countries can affect them.

Porter Five Forces Analysis ●

●

Competitive rivalry or competition ○ A large number of firms in the retail market. ○ The large variety of retail firms. ○ The high variety of firms imposes challenges to Walmart. ○ The nearest and strongest rival for Walmart in India is Reliance Retail, who announced earlier their plans to open one hundred ‘Reliance Market’ wholesale stores in India by the year 2016, and had somehow already overtaken Walmart India in terms of a number of stores.   Bargaining power of buyers ○ A large population of buyers doesn’t have much pressure on retail firms like Walmart. Nor individual buyers have much effect. ○ The weak force of buyer diversity and the weak force of small individual purchases further weaken the bargaining power of customers.

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Bargaining power of suppliers ○ The large population of suppliers as having the weak potential to impact the company. ○ Individual suppliers have an almost negligible influence on large retailers like Walmart

●

The threat of substitutes or substitution ○ Walmart offers a wide variety of goods and services that have a few or no substitutes.

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The threat of new entrants ○ Walmart should address the strong intensity of the threat of new entrants.

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New retail firms can enter the market easily even in the presence of giants like Walmart. Small retail shops can enter the market and compete with Walmart on the basis of convenience, location, specialty and other factors....