PESTEL ANALYSIS

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 PESTEL ANALYSIS

1. High stability of
1. Economic Stability 2. 
politics 2. 1. Labor Cost
Continued growth of
Political support for 2. Healthy lifestyle
developing countries
globalization trend 3. Cultural
3.
3. Political pressure diversity trend
Heavily relies on the
for higher wages 4.Failing to position itself
sales and consumption
4. to global audiences.
rate
Political Imbalance
 
1.      Increasing online
sales of online sales 2.      1.      Food safety
1.      Business
Growing risk of data regulations 2.     
sustainability trend
breaches 3.      Employment regulations
2.      Environmentally
Good supply chain 4. 3.      Tax law
friendly products trend
Automation, Robotics, reform 4. Law
3. Sewage Fiasco
and Digital Suits
Transformation.
 
SWOT ANALYSIS
 STRENGTHS WEAKNESSES
1. Brand Name/Recognition (World’s Largest 1. Behind rivals in e-commerce
Retailer) 2. Continuous Product Recall
2. Global expansion 3. A few products of Walmart’s suppliers are of poor
3. Global presence quality
4. Walmart is attractively renowned for its wide 4. Thin profit margins/ “Every Day Low Prices”
variety of products strategy/Walmart follows the strategy of economies
5. Good supply chain
6. No. of years in service
7. Most copied business model
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of scale
5. Competitive disadvantage against high-end
specialty sellers
8. Increase of sales by the most recognizable 6. Gender discrimination claims
brands available in their website 7. Wage and Hour claims
8. Over dependence on sales from U.S. market

OPPORTUNITIES THREATS
1. Global Expansion: new geographic areas 1. Intense Competition/Aggressive competition
2. Increasing online sales / increasing demand 2. Cultural barriers
of online sales 3. Slow market growth
3. Strategic alliances 4. Primary target of competition
4. Improving quality standards 5. High Employee Turnover
5. Improvement of Human resource 6. Growing risk of data breaches
6. A Healthy lifestyle trend 7. Instability in employee wages
7. Wal-Mart entered technological advancement 8. Future Lawsuits
8. Incorporate more on High-end products
 SO Strategies:

1. Being a well-recognized brand known as retail market leader locally and globally, Walmart can take
advantage of this major strength by allowing Walmart to expand more globally and form alliances with
other well-established companies with ease. (O1, O3, S1, S2, S3, S6, S7)
 
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2. Expand more sites globally and make use of technological advancement to present all products
offered to make it well known across the globe. (S2, S3, S6, O1, O2, O7)
 
3. Use brand image, Global expansion, Global presence to help growth in the market. (O1, O2, O3, O4,
O5, O6, O7, O8, S1, S2, S3)

4. Continue the diversification of Products to satisfy the consumer’s demand (S4, O6, O8)
 
5. Entering technological advancement, Walmart can increase its sales worldwide in both Walmart’s
physical stores and ecommerce (S1, S4, S8, O2, O4, O6, O7)
 
6. Should incorporate more on high-end products to get the high-end consumer for them to be more
attractively renowned for its wide variety of products and improve their quality standards. (O8, O4, S4,)
 
7. Companies within the supply chain of Walmart synchronize their projected sales through a
collaborative, planning, forecasting and replenishment system. Every chain in the link is connected by a
centralized database system, store-level point of sale system and a satellite system. (S5, O3)
 
8. One of the most important aspects of the business's success is to provide service to others.
Entrepreneurs who dedicate their lives to helping people to the best of their ability enjoy lives of
significance. (S6, O4, O6)
 WO Strategies:
 
1. Wal-Mart should provide benefits to its employees which will boost up the morale of the

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employees and leads towards the sustainable growth of the organization. (O2, O5, W6, W7,
W8)
 
2. Walmart can reduce the poor quality of its supplier by continuously checking and monitoring
of the products (O4, W2, W3)
 
3. Walmart has the ability to scale in dynamic geographies in order to have a greater value
proposition. (O1, W4)
 
4. Walmart must study more about specific health topics and what it takes for consumers to
meet their wellness goals, then provide healthy consumable products in both physical market
and ecommerce. (O1, O4, O6, O8, W1, W2, W3, W4, W5)

5. Walmart will use competitive remarketing to entice potential customers to return. (O8, W5)
 
6. Walmart must continue expanding its business to exploit economic opportunities in
developing markets to increase more sales and avoid over dependence on sales from U.S.
market. (O1, O3, W4, W8)
 
7. Walmart must form alliances or build connections with other well-established international
technology-based companies to help increase the sales on ecommerce. (O3, O7, W1)
 ST Strategies:
 
1. Meet competition with brand image, global expansion, and global presence. (T1, T4,

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S1, S2, S3)
 
2.Wal-Mart has a strong brand image over the years; it can face a massive competition
against its rivals. This can be avoidable by offering differentiated products at affordable
prices. (T1, T2, T3, T4, S1, S4, S6)
 
3. Walmart has a strong brand name and been recognized over the years. In order to
increase the sales of Walmart in their ecommerce, the company should improve the
security in their customers’ privacy data to avoid complaints and even future lawsuits.
(S1, S6, S7, S8, T1, T6, T8)
 
4. Through growing risk of data breaches, the company would lessen their global
presence and market recognition because of this factor. (T6, S1, S3)
 
5. Walmart has a better supply chain management so if the company would not motivate
the employee, it would cause a high employee turnover and slow market growth in the
industry. (S5, T5, T7, T3)
 
6. Wal-Mart has a strong brand image over the years, which they can expand in other
countries however, Walmart have to conduct a thorough study first about the country to
avoid cultural barriers. (S1, S2, T2)
 
WT Strategies:
1. To avoid tough competition, Wal-Mart should focus on existing product line
to remain above the competition by   rendering quality products which will also
generate reasonable income to Walmart to keep its competitors always on

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pressure. (T1, T3, T4, W1, W2, W3, W4, W5)
 
2. To reduce the High Employee Turnover Rate, Walmart should increase the
salary of the workers including their hourly wage employee. (T5, T7, W7)
 
3. To avoid future lawsuits they should be fair in terms of their employees
whether for its benefits or performance and improve the overall security of
their customers. (T6, T8, W6, W7)
 
4. Proper monitoring of supplier goods in order to improve the quality of the
products that they have to change slow market growth. (T1, T3, T6, W2, W3,
W5)
 
5. Conduct a thorough study about the product that a particular country really
needs and how they deliver it with good quality and affordable prices and
adapt according to their culture. (T2, W2, W3, W4, W8)
 BCG Matrix
STAR
 QUESTION MARK
1. Supercenters 1. Neighborhood market
2. The financial services strategic business  2. Local foods strategic business
3. Number 1 brand Strategic business unit 3.Confectionery strategic business unit
   
   
   
   
COW DOGS
1. Sam's Club and Walmart International 1. Discount Stores
2. supplier management service 2. Plastic bags strategic
3. Number 3 brand strategic business unit  3. Synthetic fiber products
4. International food strategic business unit 4. Artificially flavoured products
   
   
   
   
Critical Issues
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 Recommended Strategy
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1. To avoid tough competition, Wal-Mart should focus on existing product line
to remain above the competition by rendering quality products which will also
generate reasonable income to Walmart to keep its competitors always on
pressure.  
2. To reduce the High Employee Turnover Rate, Walmart should increase the
salary of the workers including their hourly wage employee.  
3. To avoid future lawsuits they should be fair in terms of their employees
whether for its benefits or performance and improve the overall security of their
customers.
4. Proper monitoring of supplier goods in order to improve the quality of the
products that they have to change slow market growth
5. Conduct a thorough study about the product that a particular country really
needs and how they deliver it with good quality and affordable prices and
adapt according to their culture.