Business Environment Analysis of Walmart

This document provides an analysis of the changes in Walmart's external environment and its impact on its business strategy. It discusses the use of strategic management tools such as Porter's five forces analysis, PESTLE analysis, and SWOT analysis. The document also offers recommendations for effective strategic management and decision-making.

Running head: BUSINESS ENVIRONMENT ANALYSIS OF WALMART
An Analysis and Evaluation of the Changes in Wal-Mart’s External Environment and Its Impact
on Its Business Strategy
Name of the University:
Name of the Student:
Authors Note:

BUSINESS ENVIRONMENT ANALYSIS OF WALMART 1
Executive Summary
Carrying out effective internal and external business environment analysis, certain renowned
strategic management tools are employed by the company in order to analyse the strategic
position of the organizations in the fiercely competitive business environment caused due to US/
China trade war. The research objective is focused on analysing the business environment of
Wal-Mart in order to develop effective strategic recommendations for the company. The research
provided necessary implications that for carrying out effective internal and external business
environment analysis, certain renowned strategic management tools are employed by the
company in order to analyse the strategic position of the organizations in the fiercely competitive
business environment. Wal-Mart is facing issues such as foreign exchange risks and increased
business market competition because of high tariffs imposed on imported goods from China due
to US/ China trade war. Increasing presence of online retailers such as Amazon along with
national, regional and local operators are imposing threats as the e-retailers are expanding their
presence to gain increased consumer base. Another recommendation that is offered to Wal-Mart
in attaining sustainable competitive edge is through developing remodelling strategy. In this
strategy rather than focussing on opening new stores, the company can take the strategic decision
to remodel its existing outlets in a manner for offering simpler and faster shopping experience to
all its consumers. Strategy of tapping into e-commerce market is recommended to keep on
providing consumers with products with low prices despite high taxes on imports due to US/
China trade war.

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Acknowledgement
I would like to express the deepest appreciation to my committee chair Professor, who has the
attitude and the substance of a genius: he continually and convincingly conveyed a spirit of
adventure in regard to research and scholarship, and an excitement in regard to teaching. Without
his guidance and persistent help this dissertation would not have been possible.

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Table of Contents
Chapter 2: Literature Review...........................................................................................................4
2.1. External and Internal Environment Analysis Tools..............................................................4
2.2. Strategic Direction and basis of Competitive Strategy.........................................................5
2.3. Strategy Evaluation and Selection........................................................................................6
Chapter 3: Methodology..................................................................................................................7
3.1. Applying Triangulation Method...........................................................................................7
3.2. Qualitative and Quantitative Methods..................................................................................8
3.3. Data Collection Methods......................................................................................................8
3.4. Data Analysis Method..........................................................................................................9
Chapter 4: Presentation of Findings................................................................................................9
4.1. PESTLE Analysis of Wal-Mart............................................................................................9
4.2. SWOT Analysis of Wal-Mart.............................................................................................12
4.3. Porter’s Five Forces Analysis.............................................................................................14
Chapter 5: Reflection.....................................................................................................................16
Chapter 6: Recommendations and Conclusion..............................................................................17
6.1. Conclusion..........................................................................................................................17
6.2. Recommendations...............................................................................................................20
References......................................................................................................................................23

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Chapter 2: Literature Review
2.1. External and Internal Environment Analysis Tools
Spicer and Hyatt (2017) indicated that the global business environment has rapidly
changed and to thrive in the global business environment, the companies are observed to be in
constant need of management strategies that can facilitate in better organizational development.
Epstein (2018) revealed that for carrying out effective internal and external business environment
analysis, certain renowned strategic management tools are employed by the company in order to
analyse the strategic position of the organizations in the fiercely competitive business
environment. These reasechers also stated that the most common strategic management tools
those are employed by the organizations in attaining strategic insight on its market position
includes porter’s five forces analysis, PESTLE analysis and SWOT analysis. Fahy (2017)
indicated that these strategic management analysis tools facilitate the managers in segmenting
goals into manageable parts. This can be done through evaluating the use of company resources
for generating strategic advantages of cost saving, business growth along with consumer
satisfaction.
 Porter’s five forces analysis: Tan (2017) stated that this is a strategic management tool
developed by Michael E. Porter that facilitates the managers in analysing the external
business environment based competitive forces impacting the company’s strategic
position in the market. It is also gathered that relied on this analysis, the managers can
analyse the threat of entrants, the bargaining power of buyers and consumers, threat of
substitutes, rivalry knowledge and the competitive forces. These researcher also revealed
that through employing this analysis tool the organizational leaders to analyse the impact

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of an industry condition on the business through use of demands on value, prices along
with quantity if services or products.
 PESTLE Analysis: He, Gan and Yuan (2019) stated that PESTEL analysis serves as a
framework or tool those are employed by the marketers in evaluating and monitoring the
macro-environmental factors those have a drastic impact on the company. The results or
findings gathered from imploring this external environment analysis tool can be
employed in evaluating the political, economic, social, technological, legal and
environmental factors impacting sustainable position of the companies. Moreover, it has
also been gathered that this business environment analysis tool can facilitate the
marketers in analysing different factors impacting business performance to develop
suitable competitive strategies.
 SWOT Analysis: Bloom and Hinrichs (2017) indicated that SWOT analysis serves as a
tool which supports systematic procedure for recognizing the company’s critical success
factors such as its internal strengths and weaknesses along with the external threats and
opportunities. These reasechers also revealed that such SWOT analysis tool offers the
organizational managers the required structure required to deal with issues, enhancing
strengths, avoiding threats along with attaining the strategic advantages of the
opportunities for attaining competitive advantages. It has also been elucidated that SWOT
analysis serves as a strategic planning technique that supports the businesses to attain
sustainable niche within the market.
2.2. Strategic Direction and basis of Competitive Strategy
Seenivasan and Talukdar (2016) elucidated that through observing the strategic direction
that is to be followed by the companies based on its external and internal business environment

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analysis the basis of competitive advantage is prepared. Considering same, it has been gathered
that there are two basic types of competitive advantages that is associated with scope of activities
for which a company attains them. This persuades the orgaanzations in developing three major
generic strategies in order to attain above average performance within the industry such as cost
leadership, focus and differentiation. Tan and Gligor (2019) added that the strategic direction of
the companies is directed towards certain major strategic decisions taken by all the companies in
attaining competitive advantages. These strategic decisions includes decisions on markets and
products, decisions on general strategies, decisions regarding growth and development actions
and business growth and development decisions taken by the companies based on analysis of its
business environment. Jenkins and Williamson (2015) stated that strategic direction concept can
be explained as course of action which results in attainment of goals of an organizations strategy.
It has also been elucidated that strategic planning is considered vital for the organizations as it
offers a sense of direction along with outfling the measuring goals. Strategic planning can
support the strategic direction of the organizations in attaining effective competitive strategies as
it offers sense of direction along with outlining the measurable advantages.
2.3. Strategy Evaluation and Selection
Martínez, Galván and Alam (2017) explained that the strategies those are selected by the
companies in attaining competitive edge within the fiercely competitive business market can be
selected and evaluated by consideration to several aspects. The strategies selected can be
evaluated by measuring them in terms of their suitability, acceptability, feasibility and advantage
obtained by organizations. In addition, these reasechers also indicted that financial and non-
financial tools can be employed in evaluating the strategic options selected by the organizations.
Chen (2016) indicated that certain financial tools such a cash flow forecasting along with

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investment analysis techniques along with the non-financial tools such as consumer satisfaction
and increased brand loyalty of consumers towards the brand. The most suitable strategies are
selected by the companies based on suitability of the strategy in addressing company’s strategic
objectives along with its capabilities to capitalise on strengths and opportunities. These
reasechers also revealed that strategy selection is decided by the companies based on its
feasibility that includes the proposed manners in which the strategies can be proposed and
whether the companies can perform and compete at a needed level. Chong and Olesen (2017)
added that consideration of the acceptability as aspect also facilitates in suitable selection of
organizational strategies that considers acceptance of proposed strategies by stakeholders
involved along with their impact on them and companies financial structure. The advantages
attained by the strategies developed can also facilitate in suitable selection of strategic options
that can support companies in obtaining better competitive advantages.
Chapter 3: Methodology
3.1. Applying Triangulation Method
Triangulation method has been employed in carrying out qualitative research on
analysing the “Changes in Wal-Mart’s External Environment and Its Impact on Its Business
Strategy”. This facilitated in data validation by means of cross verification from more than two
sources. More specifically Saunders, Lewis and Thornhill (2015) defied the triangulation method
as the application of a combination of numerous research methods within the study of the similar
process. In employing triangulation for analysing the strategic position of Wal-Mart due to US/
China trade war, the case study research method was employed within which use of data sources
along with multiple theories within the research (Patten and Newhart 2017). This facilitated in

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data validation and making sure that the secondary data analysed from the annual report of Wal-
Mart is valid, reliable and generalizable.
3.2. Qualitative and Quantitative Methods
Qualitative research method is defined by Hair Jr et al. (2015) to be a study employed in
uncovering trends within the opinions along with attaining deeper view within the issues faced
by Wal-Mart. On the other hand, quantitative research is defined by Silverman (2016) as a study
that emphasis the objective measurements along with the mathematical, statistical or numerical
evaluation of the collected data by means of questionnaires and surveys or by means of
manipulating the existing statistical data employing calculation techniques. Qualitative data was
gathered in analysing the strategic management issues faced by Wal-Mart through proper use of
secondary resources (Patten and Newhart 2017). Quantitative data was also analysed from the
annual report of the company in evaluating its strategic position based on its financial statements
for over the years 2018 and 2019. Qualitative data analysis method has been considered in this
research for the reason that it refers to meanings, concepts, definitions along with description of
the issues faced by Wal-Mart.
3.3. Data Collection Methods
Secondary data collection method was employed in this research of analysing the
“Changes in Wal-Mart’s External Environment due to US/ China trade war and Its Impact on Its
Business Strategy”. In collecting secondary data Wal-Mart’s annual report in the year 2017,
BBC News in the year 2019, certain other websites, articles along with use of the PESTEL,
SWOT and the porter’s five forces analysis tools (Patten and Newhart 2017). Such approach has
also facilitated in analysing the industry as a whole along with comparing it with the Wal-Mart
along with the academic literature.

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3.4. Data Analysis Method
The data analysis method that was employed in the current research is case study
evaluation of the Wal-Mart company that will facilitate in analysing the internal and external
business environment in order to decide the necessary strategic options for the company.
Moreover, case study data analysis is employed in this research as it can facilitate in serving as
the most common manner in carrying out qualitative research that facilitated the researcher in
retaining the holistic along with better insights of real-life events (Hair Jr et al. 2015). Case study
data analysis technique served as an empirical research technique in which there exists multiple
evidence sources with data required to converge in a triangulating manner. In analysing the case
study of Wal-Mart five components were taken into consideration in analysing the strategic
management issues faced by the company. This included the reasechers objectives, the logic
linking of data with the propositions along with analysing the criteria for findings interpretation.
Chapter 4: Presentation of Findings
4.1. PESTLE Analysis of Wal-Mart
PESTLE analysis is carried out for Wal-Mart in analysing the macro-environment within
which the company operates its business. Based on the issues recognised in the external business
environment of the company, certain effective strategic decisions are developed for Wal-Mart in
supporting its strategic direction (Ural 2016).
 Political- This force is considered to be important for Wal-Mart those are attempting to
operate within the international business environment. The international business
landscape imposes certain different political structures and governance models that are
majorly observed to take place because of US/ China trade war. For instance, there

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emerged a list of goods that Wal-Mart sources from China that is great subject to new
tariffs that is imposed on imports encompassing consumer goods for the first time
(Gattorna 2017). The complex regulatory set up imposes big obstacles for the foreign
businesses. The issue that is faced by Wal-Mart is that political turmoil is not that open
and widely for all foreign brands.
 Economic- Shipping and Zehou (2016) explained that for Wal-Mart to operate business
internationally a flourishing economy is favourable. It has been gathered that the situation
where the office in charge of China tariffs Wal-Mart was warned that the latest tariffs on
$ 200 billion worth the Chinese goods can result in major disruptions within the
company’s supply chain and price increases for their shoppers. In addition, it has also
been gathered that the current economic situation is not favourable for Wal-Mart as
profitability for the retail sector internationally is anticipated to increase in the upcoming
years.
 Social- Ravi (2015) elucidated that the social factors are considered important for
ensuring profitability of Wal-Mart international business. Consumer demographics have
undergone a major change as the current consumer generation prefers online shopping.
However, it is also observed that the US/ China trade war has great impact on consumer
prices as goods have been imported from China with duties that can be an issue for price
sensitive consumers in US. This poses an increased threat for the business of Wal-Mart as
it is a physical retailer. Moreover, other than increased technological growth, consumer
service along with convenience, social media and consumer engagement in a situation of
high tariffs has become vital trends affecting retail sector business.

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 Technological- Arthur Thompson, Strickland and Janes (2017) stated that certain
technological factors such increasing growth of online business has a central role in
ensuring business success and it is vital for Wal-Mart to consider business innovations in
its traditional retail operations. In addition, it has also been revealed that whether it is
supply chain or the traditional stores, Wal-Mart is making attempts to invest more in
technology for offering better consumer service along with enhancing their shopping
experiences. Information Technology and Artificial Intelligence are recent technological
innovations within the retail sector that can increase sales and profits of retailers.
However, such situation is deemed to be impacted from current US/ China trade war as
this has resulted in tech war. Wal-Mart can face issues from propose tariffs on their
products employed for IT, robotics, aerospace and communication technology.
 Legal- Stock.walmart.com (2019) confirmed that sustainability has turned out to be vita
concern for international businesses. It was gathered that non-compliance can result in
poor reputation for the companies along with financial losses. Wal-Mart dealt with
increased cases of lawsuits related to the labour force that ranged from discrimination to
low wages that made the international business situation difficult for the company.
Moreover, it is also facing concerns related with raising prices to maintain its profit
margin in the market because of US/ China trade war. Due to increasing tariffs the rising
costs can be transferred to consumers where they will purchase fewer products or forgo
purchases altogether.
 Environmental- Wal-Mart annual report (2019) revealed that this factor ensures that the
retail companies maintain sustainability within their businesses globally. Within the retail
sector the busineses are required to focus on better waste management, packaging, energy

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consumption along with several other environmental factors based areas. It has been
observed that within after the US/ China trade war, in US more than 81% of the materials
that flows through the companies clubs, stores and the distribution centres is diverted
from the landfills that is considered to be affected by US/ China trade wars. This is for
the reason that Wal-Mart is also focussed on maintaining responsible sourcing within the
supply chain and along with that for attaining competitive advantages, the company is
also targeting on Zero waste along with better packaging.
4.2. SWOT Analysis of Wal-Mart
Carrying out SWOT analysis for Wal-Mart has facilitated in evaluating the internal
strengths and weaknesses along with the extremely threads an opportunities faced by the
company that is making its competitive strategy implementation challenging. From analysing the
strengths, Hinterwimmer (2018) elucidated that to attain competitive advantages amid US/ China
trade war Wal-Mart has competitive strength of multi-channel selling which enhances the
company’s direct-to-consumer business. The company retails its offerings by means of
combination of online as well as in-store business formats. It has also been recognised by Singh
et al. (2017) that Wal-Mart is facing the internal weaknesses of declining profit margin due price
pressures from tariffs imposed in US/ China trade war as it has been observed that the company’s
operating margin decreased to 3.4% in the year 2018 in comparison to year 2017 that was
recognised to be 4.7%. These researchers also revealed that Wal-Mart has certain business
development opportunities in attaining advantages from the e-commerce market (Michael 2017).
Moreover, the company also has the opportunity to developing its business by implementing re-
modelling strategy in which rather than focussing on new stores, the company can remodel its
existing outlets for offering easier and faster shopping experience for its consumers. Wal-Mart

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can made the strategic decisions of modifying and upgrading certain offerings such as upgrade
its cosmetics, home, hardware, auto, baby and production departments to safeguard consumers
from facing the cost increases due to tax levied by China on US retailers like Wal-Mart in the
US/ China trade war. Ghotbabadi, Gandaee and Gandaee (2016) indicated that there are certain
threats faced by Wal-Mart such as foreign exchange risks and increased business market
competition because of affected US/ China trade relationship. Increasing presence of online
retailers such as Amazon along with national, regional and local operators are imposing threats
as the e-retailers are expanding their presence to gain increased consumer base.
Strengths
 Advantages of multi-channel selling
 Consumer centric business operation
 Better inventory turnover ratio
Weaknesses
 Decreasing profit margin due to US/
China trade war
 Legal issues faced by the business
because of increasing tariffs or levied
taxes
Opportunities
 Focus on the e-commerce market
 Remodelling strategy implementation
 Offering better value added services
Threats
 Foreign exchange risks imposed by US/
China trade war
 Fierce competition
 Increased manpower costs because of
US/ China trade war
 Risks of global expansion

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4.3. Porter’s Five Forces Analysis
Porters five forces analysis is carried out for Wal-Mart in analysing the issues faced by
the company from the existing competitive forces in making its competitive strategies useful
within the international business environment due to US/ China trade war issue.
 Bargaining Power of Suppliers- Carraher (2018) indicated that this power for Wal-Mart
is observed to be low to moderate as the company has positive itself as one of the big
retailers. It purchases in bulk that indicates major businesses for the suppliers. Moreover,
the switching costs for Wal-Mart is anticipated to be high as it has to shift from one
supplier to another without after dealing with any major costs after high tariffs are
imposed through US/ China trade wars. These reasechers also clarified that the suppliers
are in a position to impose special demands encompassing demanding lower prices along
with ethical guidelines those are agreed by suppliers willingly.
 Bargaining Power of Buyers- Grünig and Kühn (2015) elucidated that this power is
observed to be low for Wal-Mart as individual buyers do not prefer making a bulk
purchase. In addition, prices along with shopping convenience with lower pricing
strategy of the company are vital factors that decrease buyers bargaining power to a great
extent. However, due to high tariffs faced from US/ China trade wars the prices of
products are likely to increase that might affect purchasing behaviour of price sensitive
consumers. In addition, it is also observed that the switching costs are not that high for its
consumers except that they might find similar lower prices and shopping values with
other brands that they can attain from Wal-Mart. On the other hand, consumer advocate
groups are capable to exert an increased influence on the brand and hence this serves as a
weak force for the company.

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 Threat from Substitute Products- Moutinho and Phillips (2018) elucidated that this
threat is low for the reason that even after existence of several retail brands, none of them
offers prices as low as Wal-Mart. However, the consumers attain increased value from
certain established brands such as Costco, Target and Best Buy as they are membership
based retail chain and offers identical price advantages like Wal-Mart. These reasechers
also revealed that the online retailers pose a challenge as they offer increased
convenience to consumers where they do not have to pick their products from stores.
Regardless on such competition resultant from the US/ China trade war, low price value
offered by Wal-Mart is considered matchless. Such trade war is also observed to result in
China imports to US tariffs and the company’s low cost strategy is deemed to weaken
that will increase competition from new retailers offering low prices domestically.
 Threat of New Entrants- Zhiping and Zehou (2016) explained that this treat has a
medium pressure on Wal-Mart it is for the reason that the company is positioned among
the largest brands and it might require an increased investment to develop a brand like
Wal-Mart. Moreover, attaining a distribution chain along with supply system like Wal-
Mart is quite complex as it can take several years to develop similar strategy because of
tariffs affecting supplier offerings due to US/ China trade war. In addition, the financial
capital along with other resources attained by Wal-Mart decreases its chances of risks
from new entrants. Price advantages offered by Wal-Mart facilitated it in attaining
increased market share that makes entry of new retailers difficult in the market.
 Competitive Rivalry among Existing Players- Shipping and Zehou (2016) confirmed
that this threat is deemed to be medium for Wal-Mart as rivalry aiming the existing
players is observed to be high in retail sector because of the US/ China trade war

17BUSINESS ENVIRONMENT ANALYSIS OF WALMART
situation. These reasechers also revealed that Target and Costco are major competitors of
the company because of their better consumer convenience values offered. On the other
hand, Kmart, Sears and Best Buy do not impose a strong competitive challenge on Wal-
Mart. Wal-Mart will have to struggle in maintaining its low pricing strategy and has
decision of increasing product prices because of high tariff rates experienced by the
company in importing goods from China.
Chapter 5: Reflection
In carrying out the research on strategic management issues faced by Wal-Mart, I have
gathered that I have exceptional skills of public speaking and emotional management that
supports strong opinions expressed in the research. I also believe that I have employed necessary
skills required to analysing the strategic issues faced by Wal-Mart because of US/ China trade
war in order to develop effective recommendations for the company. I have also gathered that I
have employed that my skills that facilitated me to be capable to attain clear guidance detailed
evaluation of the strategic management issues faced by the company along with evaluating the
internal and external business environment. Focussed on exceptional decision making skills in
solving as well as evaluating an issue, I have considered developing a case study based report on
the research subject. This has facilitated me in developing several likely solutions for the
problems faced by Wal-Mart in maintaining its strategic position. In addition, I have also
considered selecting suitable research methodology in order to gather constructive outcomes of
the research. In analysing the strategic tariff based issues faced by Wal-Mart in US/ China trade
war I decided to carry out case study analysis in which I considered analysing secondary data
gathered from most authentic sources such as the company’s annual reports. This facilitated me
in attaining an authentic insight on the ways in which the existing competition within the market

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is imposing increased threat on the company’s sustainable position within international retail
industry due to increasing product prices resulting from tariff imposed by US/ China trade war.
In addition, I have also developed an effective literature review that explains the major
strategic analysis tools those are generally employed by the companies for analysing company’s
position in the market and accordingly they take decisions on their strategic planning. The
findings gathered from employing suitable research methodology has facilitated me in
developing effective recommendations and managerial implications for the marketers of Wal-
Mart in maintaining competitive advantages in the fiercely competitive environment use to high
tax rates on imports because of US/ China trade war. From accomplishing the research report on
Wal-Mart’s business environment analysis I have attained exceptional knowledge regarding
suitable use of the strategic management tools in developing most suitable strategies for
enhancing company's market growth. Additionally, I have also gathered exceptional skills on
managing the international business of companies. Attaining such skills will facilitate me in
ensuring employment within a company as a manager adequately skilled in better decision
making in supporting the global operations of the company in which I am working in. Moreover,
through completion of the report I have also attained knowledge on developing an informative
and well-presented research report that can serve as a motivation for further research on the
selected subject.
Chapter 6: Recommendations and Conclusion
6.1. Conclusion
The research objective is focused on analysing the business environment of Wal-Mart in
order to develop effective strategic recommendations for the company. The research provided

19BUSINESS ENVIRONMENT ANALYSIS OF WALMART
necessary implications that for carrying out effective internal and external business environment
analysis, certain renowned strategic management tools are employed by the company in order to
analyse the strategic position of the organizations in the fiercely competitive business
environment and trade barriers faced by Wal-Mart due to US/ China trade war. In addition, the
most common strategic management tools those are employed by the organizations in attaining
strategic insight on its market position includes porter’s five forces analysis, PESTLE analysis
and SWOT analysis. Case study data analysis technique served as an empirical research
technique in which there exists multiple evidence sources with data required to converge in a
triangulating manner. In analysing the case study of Wal-Mart five components were taken into
consideration in analysing the strategic management issues faced by the company due to US/
China trade war. It has been gathered from the research that the social factors are considered
important for ensuring profitability of Wal-Mart international business.
Consumer demographics have undergone a major change as the current consumer
generation prefers online shopping and they are observed to be price sensitive. This poses an
increased threat for the business of Wal-Mart as it is a physical retailer and intends to increase
prices because of US/ China trade war based tariffs on imports. Moreover, the consumers attain
increased value from certain established brands such as Costco, Target and Best Buy as they are
membership based retail chain and offers identical price advantages like Wal-Mart. In addition,
the online retailers pose a challenge as they offer increased convenience to consumers where
they do not have to pick their products from stores. Regardless on such competition, low price
value offered by Wal-Mart is considered matchless. Wal-Mart is recommended to focus its
business strategy to improve its e-commerce market to keep on providing consumers with
products with low prices despite high taxes on imports due to US/ China trade war. The research

20BUSINESS ENVIRONMENT ANALYSIS OF WALMART
also took into of the acceptability aspect also facilitates in suitable selection of organizational
strategies that considers acceptance of proposed strategies by stakeholders involved along with
their impact on them and companies financial structure. The advantages attained by the strategies
developed can also facilitate in suitable selection of strategic options that can support companies
in obtaining better competitive advantages in fiercely competitive business environment caused
from due to US/ China trade war.
The research revealed that the company also has the opportunity to developing its
business by implementing re-modelling strategy in which rather than focussing on new stores,
the company can remodel its existing outlets for offering easier and faster shopping experience
for its consumers to attain price benefits despite due to US/ China trade war. Wal-Mart can made
the strategic decisions of modifying and upgrading certain offerings such as upgrade its
cosmetics, home, hardware, auto, baby and production departments. Shoppers are turning out to
combine the online and offline behaviours along with considering both shopping modes are
forcing the retailers to take sufficient for interpreting the offline and online retail strategies and
transferring it to the Omni-channel strategy that can decrease the high tariff impact faced by
Wal-Mart due to US/ China trade war. Considering such scenario, Wal-Mart is recommended to
focus its business towards developing the e-commerce platform through starting to use physical
stores is the point of contact for the online consumers that can facilitated the company in
attaining decreased costs for maintaining low pricing strategy in high tax rate that it has to
experience in importing goods in US/ China trade war. Another strategic plan for Wal-Mart can
be to consider a decision to expand its online grocery delivery services in more than 100 metre
regions all through its business nations. Moreover, the company must also consider offering
consumers with placing online orders or through the company's mobile applications so that the

21BUSINESS ENVIRONMENT ANALYSIS OF WALMART
consumers can pick them up in their nearest store on the same day. Through implementing this
strategy, consumers can attain the advantages of picking the merchandises from both the offline
and the online platform of the company. Such strategy will offer value to its consumers which
can increase the chances for its consumers to remain loyal with the retail brand in a situation of
increased prices of products by Wal-Mart caused by tariff rate and tax rate increases in US/
China trade war.
6.2. Recommendations
Considering the strategic position of Wal-Mart based on its internal and external business
environment analysis, certain effective recommendations have been offered by the company for
facilitating its business to attain competitive advantages in the global marketplace.
 Wal-Mart is recommended to focus its business strategy to improve its e-commerce
market. Shoppers are turning out to combine the online and offline behaviours along with
considering both shopping modes are forcing the retailers to take sufficient for
interpreting the offline and online retail strategies and transferring it to the Omni-channel
strategy due to US/ China trade war. Considering such scenario, Wal-Mart is
recommended to focus its business towards developing the e-commerce platform through
starting to use physical stores is the point of contact for the online consumers. Trough
implementing this strategy, consumers can attain the advantages of picking the
merchandises from both the offline and the online platform of the company. This strategy
must focus on ensuring Wall-marts online presence including the brand websites, third
retail partnership channels along with associated mobile commerce along with the voice-
activated commerce applications.

22BUSINESS ENVIRONMENT ANALYSIS OF WALMART
 Another recommendation that is offered to Wal-Mart in attaining sustainable competitive
edge is through developing remodelling strategy. In this strategy rather than focussing on
opening new stores, the company can take the strategic decision to remodel its existing
outlets in a manner for offering simpler and faster shopping experience to all its
consumers. In this strategy, Wal-Mart must consider focusing on installing wider aisles,
shorter shelves, new and innovative signs along with the flooring designs. It must also
decide to develop a redesigned electronics department with interactive displays, a
modernised pharmaceutical base, and a private consultation room along with added self-
checkout terminals across such stores. Wal-Mart must also plan to modify and upgrade its
products range of cosmetics, home, hardware, auto, baby along with production
departments. Such strategy will offer value to its consumers which can increase the
chances for its consumers to remain loyal with the retail brand in a situation of increased
prices of products by Wal-Mart caused by tariff rate and tax rate increases in US/ China
trade war.
 Wal-Mart is also recommended to offer effective value added services to all its target
consumers in order to attain competitive advantages over its major rivals. In
implementing this strategy, the company is recommended to enter into partnership with
global wire service that can facilitate its users to send market to around several nations all
across the world. Moreover, another strategic plan for Wal-Mart can be to consider a
decision to expand its online grocery delivery services in more than 100 metre regions all
through its business nations. Moreover, the company must also consider offering
consumers with placing online orders or through the company's mobile applications so
that the consumers can pick them up in their nearest store on the same day. The company

23BUSINESS ENVIRONMENT ANALYSIS OF WALMART
must also take a market entry decision to align with an e-commerce organization in Asian
nations in order to launch an online grocery delivery service within the nations.
Considering the strategic decision of developing a mobile application can facilitate the
company to attain competitive advantages to grabbing an increased target consumer base.
In this strategy, the consumers can attain value based services of scanning and bagging
items encompassing product along with enabling them to pay directly to the retail market
with their smartphones. Implementing this strategy can facilitate in decreasing the
waiting time of the users at several payment terminals. Tapping into e-commerce market
can support Wal-Mart into keep on providing consumers with products with low prices
despite high taxes on imports due to US/ China trade war.

24BUSINESS ENVIRONMENT ANALYSIS OF WALMART
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