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Task 1

• Explain why firms develop international marketing, and


prepare a PESTEL analysis of a chosen foreign market for
identified products/services.
• Generate ideas for an innovative product or service. Focus on
the following key steps:
o Idea generation, opportunity evaluation with SWOT analysis o
Market research for the new idea and new product/service
planning
• Devise an outline marketing plan for a foreign market. Your
plan should include your objectives, the marketing mix, and
consideration of relevant ethical and environmental issues.
International Marketing Management: LO 1, LO3; Entrepreneurship
and Innovation: LO 1
Task 2
• Evaluate international marketing research techniques for a
chosen market, and explain methods your choice of for entering
that market. Your response should show consideration of:
o The choice of distribution channels for export of identified
products/services o Analysis of how foreign investment decisions
are made.
• Identify, then evaluate a target market for the new product
(see task 1) and select an appropriate market segment.
• Construct a sound business proposal for the new
product/service.
• Individually, or in groups, prepare and deliver a presentation
for a business pitch for the new product/service.
International Marketing Management: LO 1; LO 2; Entrepreneurship
and Innovation: LO 2; LO 3

Task 3
 Carry out an environmental audit of a selected organisation and
evaluate its strategic position, using PESTEL and 5 Forces analyses.

Task 1: International marketing in fundamental terms


can be referred to the word expansion. Firms usually
use the international marketing to increase brand
awareness, to promote their standards globally and to
increase their productivity by expanding. Therefore
companies operate in such a way internationally
through which they can fulfill the consumers demand
without compromising on the quality served. To enter
a foreign market a firm needs to conduct pestel
analyses to confront the upcoming hurdles.
Pestel analyses:
 This analyses refers to the political factor that
includes the policies taxation and for example
changes in the trade block (EU).
 Then comes the economic factors that include the
business cycles, interest rates.
 Furthermore the socio-culture factors such as
population and lifestyle changes.
 Additionally the technological factors that include
the use of information communication technology
and innovations.
 Adding more to this the environmental factors
which include the energy consumption and global
warming is also a part of this analyses.
 Lastly the legal factor is there which accounts for
the competitive laws, commercial laws,
environmental laws etc.
Analyzing Wal-Mart according to the Pestel Analyses
in the international market:
 Due to the massive size of this organization, Wal-Mart has
been known to interfere with several political groups, to
keep its influence and political control over the business.
Wal-Mart has also been ranked among the top 100
political donors since 1989, In this Political category of
pestel analyses, Wal-Mart operates in politically stable
region, to protect its policies, to operate without
corruption as well.
 Secondly Wal-Mart is also influenced by the economic
factors, for example the currency exchange rates between
US dollar and other currencies can impact Wal-Mart profits
and sales.
 Strong USD relation to other currencies had negative
impacts on sales in 2015 due to the global scale of
Walmart operations.
 Moreover the social factors also play a great role over here
because Wal-Mart can establish strong profits and bonds
by focusing on the socio cultural factors, Wal-Mart can use
different varieties of products to satisfy the various socio
cultural preferences.
 Furthermore, If Wal-Mart improves it technology like
recently it is working on data mining, big data and data
analytics to gather the consumer information and to
enhance their vision towards the requirements to
consumers, it can therefore increase the productivity.
 Wal-Mart should also focus on the environment by
increasing business sustainability, resources shall not be
wasted and environmental friendly products should be
sold, thus this will help to increase productivity and will
improve the reputation and standard of Wal-Mart.
 Lastly Wal-Mart should also focus on the legal factors that
are the food safety regulations, employment regulations
and tax law reform. Wal-Mart must take these regulations
to improve the quality of their products. Moreover this
would make Wal-Mart legitimate to operate without
distorting the legal regulations.
Important aspects of promoting Whey protein in the
international market by Wal-Mart: To gain a
significant position in the international market, and to
promote the Whey-protein that has been unveiled by
Wal-Mart, this enterprise needs to consider several
import aspects that are as follows:
 Business sectors: Business sectors, a term that is
used to divide business into three sectors, the
primary sector (extraction of raw materials), the
secondary factor (manufacturing of the product)
and lastly the tertiary sector (Refers to services
rendered to consumers). For the product unveiling,
Wal-Mart needs to determine these factors and
then work out on the basis of the information
received.
 Products: Products are usually known as the raw
materials that are processed and made into items.
These products are later on sold and the company
generates profit after selling these products. Wal-
Mart has always been operating with a slogan or
motto of "Always low prices". If this product is sold
by Wal-Mart, this organization must keep the prices
low so that the consumer can plan a certain budget
and can buy this Whey protein.
 Country of Operations: This is referred to the
country where Wal-Mart can plan its operational
activities. The operational activities are really
important because if these are rendered efficiently,
the cost of production can decrease as well as the
productivity increases. However, to launch this
whey protein product, Wal-Mart also needs to
analyze the cultural factors of the country as well
and the cost of production that will incur.
 Targeting sector: If the selected sector is
appropriate then the results for unveiling this
product can be really astonishing, the enterprise
can generate a lot of revenue. In the case of the
selected sector to target for whey protein by Wal-
Mart, they need to focus on the sector that
comprises of teenagers and sectors where physical
health and strength is considered very important.
Generating ideas for an innovation of the Whey
protein product at Wal-Mart: Since Wal-Mart is one of
the global leading brands and it has a very fair
customer policy, thus the generating idea of launching
the whey protein product would not go futile. Many
customers are facing health issues due to lack of a
nutritious diet, therefore introducing this whey protein
in the global market can help to boost the immune
system because of its pure formula and zero side-
effects. This product will also help teenagers to gain
the protein which lacks in their diet and thus this whey
protein can actually tend to increase the muscle
strength and the overall immune system of the
consumer. However, it Wal-Mart needs to innovate
this idea it has to tackle a lot of challenges from other
multinational organizations such as Muscle-tech etc. To
overcome this gap, Wal-Mart needs to focus on the
following aspects:
 Brainstorming: Wal-Mart needs to receive the
customer feedback for their whey protein because
it can provide them with valuable information.
Thus if required alterations can be made for the
whey protein. Thus brainstorming will help to
resolve all the challenges that could have possibly
arrived from the consumer side.
 External sources: These can be known as the
outsourcing resources. To improve their quality of
work, Wal-Mart has to focus on the external
resources as well. They shall refrain from the
mistakes that have been previously made by other
manufactures and they can possibly adopt the
positive aspects to promote their whey protein
and to gain a recognition in the international
market.
 Involvement of Staff: Wal-Mart should choose a
dedicated team that is willing to overcome all the
challenges to manufacture this whey protein. Thus
the more involvement of staff, the more
commitment offered, the better the services will
be.
 Customers: This is the main objective that is faced
by any organization. For Wal-Mart to introduce
their whey protein to the consumer market, they
must make sure that it comes in the affordability
of the consumers, the quality shall not be
compromised. The consumer preferences shall be
valued according to their requirements. Through
these techniques Wal-Mart has gained a lot of
brand loyalty, therefore introducing whey protein
with these factors can actually lead Wal-Mart
towards success.
 Competitors: Wal-Mart has to make sure about
the rival companies. To break the monopoly of the
other organizations, Wal-Mart has to keep the
prices low and the quality high with much better
services to the consumers.
 Suppliers and distributors: It is really essential for
Wal-Mart to talk to the suppliers and other
distributors for their products. This can lead them
to have ideas about the market and the
competition they have to face in case of launching
their whey protein product.
 Idea screening: This process is usually done for
evaluation purposes regarding a product, whether
the product will promise future good returns of
investment of now. For the whey protein, Wal-
Mart needs to make ensure that this product can
be a stepping stone for them to expand their
business globally.
 Concept development: This is a part of the
product development. Wal-Mart needs to ensure
that the concept they are developing by unveiling
the whey-protein matches to the consumer
requirements and demands. This is one of the
most important steps for Wal-Mart.
 Testing product life cycle: These are the tests that
are conducted to see the reliability of the products
and the durability under extreme conditions for
each phase. In this scenario, Wal-Mart needs to
conduct this analysis for the whey protein to see
that if it is durable as compared to other rivalry
products.
 Market Research: Wal-Mart is the renowned
champ for serving the consumer needs, the
market research shall be carried out for the whey
protein to see that whether it is launched in an
affordable price for the consumers and does it
match the preferences and needs of the
consumers. This market research summarizes all
the above points because it also involves the
competition in the market.
SWOT analyses for Wal-Mart Whey Protein Product:
The main purpose of Wal-Mart to unveil its product in
the global market is due to the fact that this whey
protein can be a turning point for teenagers pursuing a
career in bodybuilding, for people who have diet
deficiency, and for various other reasons. A detailed
analyses can be as follows:
 Strengths: These can be referred to the extremely
great brand recognition, it's one of the most
renowned global enterprise with over 60 million
products. It has global expansion, one of the
examples could be the joint venture Wal-Mart has
with the India's biggest retailer store, BHARTI.
Wal-Mart works on the everyday low prices
strategy because it is based on the economies of
scale agenda. Wal-Mart has a strong power over
the supplier and distributors due to the large
organization size. Therefore launching the whey
protein product must be a key to a promising
future.
 Weaknesses: Due to the large span of Wal-Mart it
becomes really difficult to administer different
departments. Moreover Wal-Mart focusses on the
cost leadership strategy that can result in thin
marginal profits. Lastly Wal-Mart business
strategies can be copied, it has no advantage over
the competitors regardless of the giant
organization size. Wal-Mart needs to work on
these sectors to enhance its control over the
rivalries. These factors can eventually be the
downfall if whey protein is launched under these
circumstances.
 Opportunities: There are several opportunities for
Wal-Mart in launching whey protein. Wal-Mart
can expands its retail stores in areas like China,
Middle-East countries etc. Due to a high brand
recognition, Strategic alliances can be formed as
well that can also help to promote their product
of whey protein. Wal-Mart has already kept the
prices low, however to launch the whey protein
they can promise better quality to the customers
in future.
 Threats: Wal-Mart can receive several threats
while launching the whey protein. This threat
fundamentally comes from the rival companies.
Being one of the largest retailers, Wal-Mart is
always the primary target for other companies.
The political and legal issues can hinder the
operational activities of Wal-Mart in some
countries.
To overcome the threats and weaknesses, Wal-Mart
needs to use the policy of divide and rule,
administrative system shall be enhanced in order to
achieve better results. New business strategies are to
be used to collect consumer data such as data mining
and other techniques. To overcome the threats, Wal-
Mart firstly needs to know about the legitimate nature
of certain countries. For Example if they have to
operate in Middle East they must have to make sure
that their product doesn’t contain Pig fat as a source of
protein because it is not allowed in the countries that
have Sharia law such as UAE and Saudi Arabia.
Moreover, Wal-Mart has to stay ahead in terms of
quality and pricing and retain its consumer confidence.
Wal-Mart shouldn’t give a shot to any other rival
company to take lead.
Missions: The mission of launching the whey protein
product is to boost the strength of people around the
world, to increase physical stability as well as the
muscle resilience. If customers start consuming this
product, they can see better results without any side
effects.
Vision: To initiate this mission, the vision is to focus on
quality, reduced prices to enhance sales and to
decrease the marketing competition.
Objectives: To satisfy the customer needs, to offer a
promising whey protein product with positive results,
to increase the profits.
Marketing Plan for Whey Protein to enhance its
presence in the foreign market: For Wal-Mart to enter
a foreign market, they need to make sure that they
have a subjected marketing plan to address their issues
or threats. This marketing plan will set Wal-Mart on a
specific course, to implement such a strategy that
would attract consumers. This marketing plan must be
carried out after analyzing the scenario in the foreign
international markets. These include the following
points:
 Objectives: There are several objectives when it
comes to launching the Whey protein product in
the foreign market. The initial objectives can be
mentioned. Initially Wal-Mart wants to grow the
market shares by targeting more and more
consumers and by launching new products. To
receive more profit and revenue, by generating
more sales. Wal-Mart also wants to increase its
brand awareness. Moreover, to build relationships
with other allies and shareholders in the
international market so that Wal-Mart can target
the whole economy. Lastly the main objective is to
enhance the customer relationships.
Marketing mix and market segmentation: For Wal-
Mart to launch their new product of whey protein
marketing mix is an essential way to target the entire
market. Marketing mix refers to the actions and the
choices a company has to promote its brand or a
product or a service in a targeted market. The 4 P's in a
marketing mix refers to the product attributes, the
price strategy, the promotion (communication
strategy) and the place (distribution strategy). The
market mixed can be described ahead:
 Price strategy: Price strategy refers to a certain
cost or a specific price that is set up for a product
or service. This price also determines the firms
profit and survival in the short run as well as in the
long run. Adjusting the price of the product can lay
a big impact on the targeted market.
 The product attributes: A product is an item that is
manufactured to ease the needs of the consumers
or more significantly it can be said that a product is
made to meet the customer requirement.
Moreover it must be observed that the right type
of product is chosen for the type of targeted
market. For this purposes specific evaluations of
the market places shall be done in order to get an
estimate of the ability of the product performing
in a certain market. Besides this a product has a
certain life cycle that is the growth phase, the
maturity phase and lastly the sales decline phase
so the marketing strategy shall be used to regain
the value of products by providing better social
support for campaigning and promoting the
product.
 Place (distribution strategy): The placement of a
certain product or the distribution of the product
is a very important aspect of the marketing mix.
This means that the product shall be placed or
distributed in such a way that it can be accessible
to the consumers for purchasing purposes. Thus if
this strategy is followed correctly it can ensure
better payback results in terms of profit generated
globally.
 The promotion or communication strategy:
Promotion is an important aspect for marketing
because it can get high recognition to a certain
product of company. It can boost the brand
position in the financial and global market.
Promotion is done through a number of important
elements that help a company boost its position.
The sales organizations, the public relations, the
advertisements and the sales promotion.

Ethical and environmental issues in the marketing of


whey protein by Wal-Mart: Ethics are the set or norms
to shape the decisions of organizations. If Wal-Mart
follows the set of ethics prescribed, it can develop a
competitive stance over the other organizations.
Moreover ethical tradeoffs can be considered as a
mutual compromise between two organizations that
can be allies or rivalries. Furthermore an organization
must have managerial ethics that defines that the
upper authority shall guide the difference between
what is right and what is wrong, it helps lower
managerial workers to take better decisions in the
future. Organizations shall also refrain from price
discrimination and price fixing, similarly the
organization must prove its identity to the customers
to prevent scams and frauds. For the supply chain
purposes, restricted supply shouldn’t be done because
it can damage an organization by declining the profits.
Fake branding on a certain product shall also be
prohibited.
Consumer ethics: Consumers must also follow a set of
rules, and values. They should prevent false insurance
claims, warranty deceptions, fraudulent redemption of
vouchers, illegal download, stealing information etc.
There are several ethical issues which Wal-Mart is
currently dealing in such as employee discrimination
etc. There are several environmental issues that are
being faced by Wal-Mart as well, by omitting
greenhouse gases and the pollution created by
business activities have tended to increase. To
overcome these issues, Wal-Mart has to improve
sustainability, their efficiency and they have to work on
reducing pollution as well.
Globalization and the world trade scenario:
Globalization can be referred to the
interconnectedness between the states. Since the
world is becoming a global village, enterprises have to
pass through certain stages. Globalization gives
organizations like Wal-Mart a chance to expand and to
reach different parts of the world. Globalization has
certainly promoted brands through traditional and
digital means. There are 4 stages in the global market
for enterprises:
 The Domestic Market.
 The International Market.
 The multinational Market.
 The Global Market.
The globalization begins from the domestic markets,
which means operating regionally, then the enterprise
could expand internationally and moreover its can
regain more brand awareness after competing in the
multinational market and lastly the global market is the
place where the enterprise can establish its name
globally. Due to less sanctions there isn’t any problem
in trading as well despite certain areas.
Free market forces: These are the forces of supply and
demand that are free from any sort of intervention
from the government. These forces are free to
operate.
Trading relationships: This can be manifested as a
relationship between countries or organizations for
trading. Trading can be done conveniently in some
places whereas in other places sanctions can be
applied.
Stages in exporting the whey protein product: There
are several stages that Wal-Mart needs to overcome
before exporting their whey protein product:
 Initiative.
 Proper plan.
 Selling criteria and strategy.
 Targeted Market.
 Opportunities available.
 Threats that can occur.
 Legal factors.
 Transportation factors.
"C" factors for the whey protein: If Wal-Mart sell their
protein in the global market, the C factors will help to
understand the operation in the market and the norms
and values as well. These C factors include:
 Countries: The countries that are chosen to
operate within.
 Currency: The literal value in which whey protein
is going to be sold and in which profits are to be
generated.
 Competitors: The rivalry Wal-Mart will face after
launching their product.
Free Trade Policies: This is the policy that manifests
uninterrupted trade between importing and exporting
of goods and services between different countries.
Under this trade the government imposes no taxes,
and duties. This policy helps to promote trade and if
implemented, through this policy Wal-Mart can easily
export its whey protein globally in the regions that
have free trade policies.
Pestel analyses according to the marketing
environment: This analyses refers to the political factor
that includes the policies taxation and for example
changes in the trade block (EU). Then comes the
economic factors that include the business cycles,
interest rates. Furthermore the socio-culture factors
such as population and lifestyle changes. Additionally
the technological factors that include the use of
information communication technology and
innovations. Adding more to this the environmental
factors which include the energy consumption and
global warming is also a part of this analyses. Lastly the
legal factor is there which accounts for the competitive
laws, commercial laws, environmental laws etc.
TASK 2: International marketing research is systematic
process, analyses and reporting of information that
helps to take decisions regarding a specific marketing
decision which is taken by an enterprise operating
internationally. It basically works through market
survey planning, consumer feedback etc. There are
several international marketing techniques that can be
described as follows:
 Preparation: This refers to the mental and the
physical competencies to compete in the
international markets. This comprises of the
operational costs, the manufacturing, the
processing cost, the service costs etc. Moreover it
may include a proper business plan to work
against rivalries.
 Data collection: This technique refers to the
measurement and gathering of information about
the consumer's tastes and preferences. This can be
done through the latest techniques. An example of
it can be Wal-Mart which has adopted the data
mining process to gather consumer data.
 Communications and advertisements: These
communications are the means to interact with
consumers and well as to help consumers.
Communications can be in the form of customer
service. Advertisements can be done through
marketing, digital marketing and traditional
marketing.
 Analyses: Considering a consistent observation
about the marketing search and analyzing it to see
if it can prove productive.
 Presenting the results: This is the final stage
where the international business proposal is
defined to the respected investors/
Moreover, there are several factors which influence
these international marketing techniques.
 Needs of international consumers: This refers to
the preference of the international consumers,
their tastes and needs. It can be actually described
as the wants of consumers. In case of the whey
protein, the introduction of different flavors can
leave a strong impact on customers.
 Cultural aspects: Culture has a great impact on
international marketing. A marketer have to
analyze the local culture to enhance better
communication towards the consumers.
Methods of entering into the foreign market for
Whey Protein: There are several methods that are to
be followed while entering into the international
market. Competing in the international marketing
can bring out several prosperities for the business,
however on the similar side there can be threats and
competition as well. To enhance the business plan,
the whey protein business needs to consider the
right choice of distribution channels which includes:
 Product: Standardized whey protein if produced
can generate beneficial results.
 Market: Since this whey protein will be exported
by Wal-Mart, it is a large market retailer and has
several channels therefore can increase
productivity while selling this whey protein. This
will also help to gain a competitive advantage.
 Middlemen: Those who wants to provide
marketing services are the ones who are initially
preferred to promote the product. Larger the sales
and lower the cost gives the highest priority.
 Company: The larger the company size (Wal-Mart
one of the biggest retailers) the larger the account
size which leads to better cooperation from the
middlemen.
 Marketing environment: During recession and
depression, the preference it set up to shorter and
cheaper channels whereas during prosperity it has
a wide range of channels.
 Competitors: Rivalry in the market that can be
Tesco or Muscle-Tech for selling of whey protein.
 Customer characteristics: The preferences of the
customers, the average purchase rate and the
geographical distribution.
 Channel compensation: It fundamentally includes
cost benefit analysis, and there are several
elements despite the channels that include the
transportation, warehouse charges etc.
International distribution strategy: It is the process
and strategy that helps to get the product into the
overseas market, its fundamentally about entering the
international markets. It has 4 types of marketing
channels:
 Direct selling
 Selling through a middle person,
 Dual distribution
 Reverse channels.
Direct and indirect exporting: Direct importing refers
to selling the product directly into the external market,
and indirect exporting refers to exporting a product to
a third party organization which sell the product
onwards.
Alternative market entries: Alternative market entries
are alternative routes to enter the foreign market.
These comprises of the following aspects:
 Franchising: Franchising is the method in which
the owner of the product distributes its products
through affiliated dealers.
 Licensing: This is a legal paperwork that allows a
certain organization to work, sell and produce
their products in a specific regions accordingly.
 Joint Ventures: Joint Venture is a strategic alliance
where certain parties collaborate to sell their
products. In this case, Wal-Mart has a joint
venture with the India's biggest retailing store,
Bharti.
 Mergers and acquisitions: This is referred to the
consolidation of enterprises, in mergers two
organizations combine whereas in acquisitions one
organization takes over the other organization.
 Product lifecycle: This is the process in business
management in which a product will go through its
life cycle, it will involve several stages such as
introduction, growth, maturity and decline.
Significance of channel decision making:
Marketing channel decisions are as important as
the decisions companies make about the features and
prices of products. Channel partners are firms that
actively promote and sell a product as it travels
through its channel to its user.
Task 3: Environmental Audit of Wal-Mart: This
environmental audit refers to the practice in which the
organizational observes the rules of the environment
providing minimum harm to the environment. Wal-
Mart strategic position is really stable due to the fact of
it being the largest retail center as well having the
largest bulk quantity of more than 60,000 products.
Moreover, it operates on the strategy of keeping the
costs low to increase consumer affordability.
Marketing mix and market segmentation in Wal-Mart. For
Wal-Mart to launch their new product of whey protein
marketing mix is an essential way to target the entire market.
Marketing mix refers to the actions and the choices a
company has to promote its brand or a product or a service
in a targeted market. The 4 P's in a marketing mix refers to
the product attributes, the price strategy, the promotion
(communication strategy) and the place (distribution
strategy). The market mixed can be described ahead:
 Price strategy: Price strategy refers to a certain cost or
a specific price that is set up for a product or service.
This price also determines the firms profit and survival
in the short run as well as in the long run. Adjusting the
price of the product can lay a big impact on the
targeted market.
 The product attributes: A product is an item that is
manufactured to ease the needs of the consumers or
more significantly it can be said that a product is made
to meet the customer requirement. Moreover it must
be observed that the right type of product is chosen for
the type of targeted market. For this purposes specific
evaluations of the market places shall be done in order
to get an estimate of the ability of the product
performing in a certain market. Besides this a product
has a certain life cycle that is the growth phase, the
maturity phase and lastly the sales decline phase so the
marketing strategy shall be used to regain the value of
products by providing better social support for
campaigning and promoting the product.
 Place (distribution strategy): The placement of a
certain product or the distribution of the product is a
very important aspect of the marketing mix. This means
that the product shall be placed or distributed in such a
way that it can be accessible to the consumers for
purchasing purposes. Thus if this strategy is followed
correctly it can ensure better payback results in terms
of profit generated globally.
 The promotion or communication strategy: Promotion
is an important aspect for marketing because it can get
high recognition to a certain product of company. It can
boost the brand position in the financial and global
market. Promotion is done through a number of
important elements that help a company boost its
position. The sales organizations, the public relations,
the advertisements and the sales promotion.
Marketing Mix 7 P's at Wal-Mart: This is basically an
extended version of the 4'p model and this is generally used
in businesses that provide services rather than products.
Here is the expansion of the 7 P's model from 4 P's
 People: This part of the marketing mix can be defined in
a scenario that the more the people in the targeted
market, the more the products shall be sold and the
more the demands that will occur generally. People
gives rating and feedbacks for the products and once
people are specifically attracted to a certain product or
are satisfied with services then it will attract the
employers to give their best shot in terms of production
and services. For Wal-Mart it has the highest customer
loyalty because of better services rendered.
 Process: The process is the methodology of
manufacturing a product, thus the manufactures have
to ensure that they produce a well standardized product
at a minimal cost or in literal words the more efficient
the process the better the outcomes. Wal-Mart keeps
operational costs low to enhance profits.
 Physical evidence: There shall be a physical evidence
that a certain organization provided these products and
services. For example when consumers needs to buy
products or to claim products, they have to visit the
Wal-Mart store thus physical existence is very
important.
Ethical issues in the marketing of whey protein by Wal-
Mart: Ethics are the set or norms to shape the decisions of
organizations. If Wal-Mart follows the set of ethics
prescribed, it can develop a competitive stance over the
other organizations. Moreover ethical tradeoffs can be
considered as a mutual compromise between two
organizations that can be allies or rivalries. Furthermore an
organization must have managerial ethics that defines that
the upper authority shall guide the difference between what
is right and what is wrong, it helps lower managerial workers
to take better decisions in the future. Organizations shall also
refrain from price discrimination and price fixing, similarly
the organization must prove its identity to the customers to
prevent scams and frauds. For the supply chain purposes,
restricted supply shouldn’t be done because it can damage
an organization by declining the profits. Fake branding on a
certain product shall also be prohibited.
Customer 4'Cs: Customer 4'cs gives organizations a
broad range to think about the consumer preferences
first, it has the following aspects:
 Consumer
 Cost
 Convenience
 Communication
Analyzing it with respect to Walmart, it can be
manifested that the consumer factor in the 4'c
denotes the customized functionality at Wal-Mart,
with wide range of products to choose and
exceptional variety of purchase and delivery options.
Secondly the Cost Factor can be manifested with the
motto of Lowest prices-ALWAYS! Wal-Mart offers low
cost prices as compared to amazon and other
rivalries. It offers the third factor of convenience by
having multiple channels for consumers as well as an
e-commerce store. Lastly the communication is
proceeded by having new campaigns for products to
enhance customer perspective.

Possible Impact on Strategy and mitigation of Issues:


Strategy is one of the most important step an
organization takes to reach its aims and goals. It
involves the future and current objectives to achieve
long and short term goals. However there are three
types of strategies in an organization:
 Corporate strategy: This focuses to manage the
resources that includes the risks, returns, profits
and loss across the firm
 Business Unit Strategy: This strategy is used to
choose and create the best capital to get promised
good returns on investments.
 Operational Strategy: Operational strategy is the
way an organization chooses to operate.
 Mitigation of Issues Strategy: This strategy include
risk, transfer, and elimination at an acceptable
level. The mitigation strategy is therefore used to
counter these risks.
The operational costs of Wal-Mart is very low, thus
they work with efficiency and productivity.
If these strategies goes wrong, the organization can
face severe consequences therefore they need to make
sure that they are consistent and confident about the
strategies being used.
Strategic position of Wal-Mart can be analyzed as
follows:
 Current marketing situations: The current markets
represents the competition, the rivalries, the
opportunities and the targeted audience. Wal-
Mart uses the type of markets accordingly, it
targets the single customer segment and play the
greatest part by keeping prices low.
 Marketing objectives of Wal-Mart: Wal-Mart has
the marketing objectives to expand their retail
center and therefore it is the largest retail center
due to its consumer friendly policies. The bulk
sales of Wal-Mart is one of the marketing
objective because most consumers tend to buy
products in large bulk. Moreover another objective
is to keeps the operational and supply chain costs
low, therefore Wal-Mart has excellent
procurement policies.
 Issues Faced by Wal-Mart: Wal-Mart has faced
issues and criticism due to employee policies that
included low wages, poor working conditions etc.
 Marketing strategies by Wal-Mart: Wal-Mart uses
the demographic and psychographic segmentation
strategies that helps to understand the consumers
in a much better way helps to communicate the
tastes of the consumers to the organization.
 Wal-Mart implementation plan: Wal-Mart has
used the strategic initiatives to conduct a plan with
consumers and stakeholders for the investment
community meeting, this means that Wal-Mart is
implementing on a new strategy to enhance its
brand awareness and to increase sustainability.
 Budget and monitoring control in Wal-Mart: The
departments in Wal-Mart have to focus on the
strategy to monitor their budget and to control
their expenditures to ensure that it doesn’t use
much on investment. Similarly Wal-Mart has low
operational and over-head costs, thus it has a very
dedicated budget for the investment.
Analyzing Wal-Mart according to the Pestel Analyses:
 Due to the massive size of this organization, Wal-Mart has
been known to interfere with several political groups, to
keep its influence and political control over the business.
Wal-Mart has also been ranked among the top 100
political donors since 1989, In this Political category of
pestel analyses, Wal-Mart operates in politically stable
region, to protect its policies, to operate without
corruption as well.
 Secondly Wal-Mart is also influenced by the economic
factors, for example the currency exchange rates between
US dollar and other currencies can impact Wal-Mart profits
and sales.
 Strong USD relation to other currencies had negative
impacts on sales in 2015 due to the global scale of
Walmart operations.
 Moreover the social factors also play a great role over here
because Wal-Mart can establish strong profits and bonds
by focusing on the socio cultural factors, Wal-Mart can use
different varieties of products to satisfy the various socio
cultural preferences.
 Furthermore, If Wal-Mart improves it technology like
recently it is working on data mining, big data and data
analytics to gather the consumer information and to
enhance their vision towards the requirements to
consumers, it can therefore increase the productivity.
 Wal-Mart should also focus on the environment by
increasing business sustainability, resources shall not be
wasted and environmental friendly products should be
sold, thus this will help to increase productivity and will
improve the reputation and standard of Wal-Mart.
 Lastly Wal-Mart should also focus on the legal factors that
are the food safety regulations, employment regulations
and tax law reform. Wal-Mart must take these regulations
to improve the quality of their products. Moreover this
would make Wal-Mart legitimate to operate without
distorting the legal regulations.

SWOT analyses for Wal-Mart:


 Strengths: These can be referred to the extremely
great brand recognition, it's one of the most
renowned global enterprise with over 60 million
products. It has global expansion, one of the
examples could be the joint venture Wal-Mart has
with the India's biggest retailer store, BHARTI.
Wal-Mart works on the everyday low prices
strategy because it is based on the economies of
scale agenda. Wal-Mart has a strong power over
the supplier and distributors due to the large
organizational size
 Weaknesses: Due to the large span of Wal-Mart it
becomes really difficult to administer different
departments. Moreover Wal-Mart focusses on the
cost leadership strategy that can result in thin
marginal profits. Lastly Wal-Mart business
strategies can be copied, it has no advantage over
the competitors regardless of the giant
organization size. Wal-Mart needs to work on
these sectors to enhance its control over the
rivalries.
 Opportunities: There are several opportunities for
Wal-Mart. Wal-Mart can expands its retail stores
in areas like China, Middle-East countries etc. Due
to a high brand recognition, Strategic alliances can
be formed as well that can also help to promote
their product of whey protein. Wal-Mart has
already kept the prices low.
 Threats: Wal-Mart can receive several threats
while launching the whey protein. This threat
fundamentally comes from the rival companies.
Being one of the largest retailers, Wal-Mart is
always the primary target for other companies.
The political and legal issues can hinder the
operational activities of Wal-Mart in some
countries.
Five Forces Analyses of Wal-Mart: This five forces
analyses was given by Porter. It describes the following
factors:
 Threats of new substitutes: These are the threat
of products delivered by rival companies.
However, in case of Wal-Mart this is low due to
the reason that no other rivalry offers as low
prices as Wal-Mart does.
 Threat of New entrants: This is the threat of new
companies originating in the organization market.
Since Wal-Mart is one of the biggest retail stores,
this threat is very low because of its organization
size.
 Bargaining power of buyers: This can be referred
to the pressure that customers put on the
business. In case of Wal-Mart the bargaining
power of buyers is not high at all due to the fact
that they don’t make big purchases
 Bargaining power of Suppliers: This can be
manifested as the pressure suppliers can put on an
organization. In case of Wal-Mart it is one of the
largest organizations and if one supplier gets away,
there are many suppliers in the market who shall
be willing to accept the offer form Wal-Mart at any
cost. So this isn’t a big threat to Wal-Mart.
 Rivalry among existing competition: The rivalry is
the competition between organizations. Wal-Mart
has a medium threat from this because it has
different strategic policies to operate as compared
to Tesco and Amazon. Wal-Mart has the policy of
low prices which none other organization is willing
to offer, so Wal-Mart has a competitive advantage.
BUSINESS TO BUSINESS (B2B) and BUSINESS TO
CONSUMER (B2C).
B2C (Business to consumer): This model sells its
products directly to the consumers through e-
commerce. Wal-Mart has established its online e-
commerce so that consumers can directly purchase. A
consumer can gain information regarding the product
and can purchase it online. The consumer can order
the product online, for which the customer has to sign-
in the website, then once the order is processed a
confirmation mail is sent to the consumers email
address to confirm shipping. Secondly highlighting the
B2B (Business to Business) model. This model sells its
products to the middle buyer who then serves as a
median towards the final customer. For instance, an
example could be that a wholesale unit orders a
product from a certain website and then latterly after
receiving the order sells it to the final customers. With
respect to Wal-Mart, it has an online e-commerce
website known as WalMart.com. Walmart B2B Cash &
Carry Business Supports Kirana Members with
PhonePe’s payment options for secure shopping and
therefore enhances the experience.
Globalization due to B2B and B2C models: The B2B
and B2C models have increased the global competition
in the international market. The interconnectedness
have increase, therefore the consumer dependency on
global online marketing have increased. Thus the world
is becoming a global village and these two models play
an important role in it.

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