Walmart Strategy

PESTEL Analysis- Wal-mart: Demographic constituent: Opportunity Wal-Mart took advantage of the communitys that were rural, or very shut out to major cities. Thus, the increasing suburban sprawl that accompanied the U.S. population growth was an opportunity. Wal-Mart could also take advantage of widening income gaps in the United States as it could provide a way to spread out incomes, and reduce lump. Economic Segment: Opportunity The economic segment includes inflation rates, interest rates, handicraft deficits, budget deficits, savings rates, and other areas of the economy. The live low interest rates present an opportunity for Wal-Mart as it expands its number of stores. Wal-Mart contributes significantly to the trade deficit through imports from chinaware (in the range of $18 billion per year). A possible brat might be any action to reduce the trade deficit through tariffs or pressures to raise the value of the Chinese Yuan (both of which would cause the price of Wal-Marts imports to increase). As prices in general climb, Wal-Mart through its various business practices give be at an advantage, in fact, as the economy becomes less attractive, Wal-Mart will have an advantage over most of its competitors. The weak clam is a disadvantage as Wal-Mart is dependent on imports as part of its low cost strategy.

Political/Legal Segment: Threat The main threats in the political arena come from potential drop legislation by states to require Wal-Mart to provide health damages coverage for its employees. This threat is not discussed in the case, but it is a relevant current issue. Such legislation could reduce Wal-Marts cost advantage. The main threats in the case, however, are the potential lawsuits relate to discrimination. Legal action is also possible in encounter to the allegation of hiring illegal immigrants. Sociocultural Segment: Mixed Opportunities and Threats The sociocultural segment includes women in the workforce, diversity, attitudes about the... If you want to get a full essay, order it on our website: Orderessay

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