International Marketing Report on Wal-Mart

Running head: Wal-Mart
International Marketing Report

Wal-Mart 1
Table of Contents
Introduction.................................................................................................................................................1
Task 1..........................................................................................................................................................1
Macro analysis – Pestle...........................................................................................................................1
Micro analysis.............................................................................................................................................2
Porter five forces analysis........................................................................................................................2
Task 2..........................................................................................................................................................4
The value chain of Wal Mart...................................................................................................................4
Task 3..........................................................................................................................................................6
Wal-Mart’s reason for success or failure in India........................................................................................6
Task 4..........................................................................................................................................................7
Mode of entry inside India...........................................................................................................................7
Task 5..........................................................................................................................................................8
Marketing Mix for Wal-Mart.......................................................................................................................8
Conclusion...................................................................................................................................................9
REFERENCES..........................................................................................................................................10
Introduction
Wal-Mart is one of the largest grocery chains globally. The company was established in
1962 by Samuel Walton and J.L Walton. In this report, proper analysis will be made of Wal-
Mart.

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Task 1
Macro analysis – Pestle
Political Factor
Political factor plays a great role for the brands like Wal-Mart who are trying to conduct
the activities on an international level. It is seen that the rules and regulations in India are strict
and it is important to consider proper rules and regulations so that entry can be easy for the
company. In India there is high level of stability in politics so it is an opportunity for the
company to enhance the market share and conduct the activities in India. In India there is
political support for globalization and it is seen that it is one of the opportunity for the company
to enhance its market share in a proper manner. It is also seen that India give opportunity to the
foreign investors so that business can be conducted with a local companies. At the timing of
entering into the market it is seen that the company faced many rules and regulations related with
currency and tax system (Joseph, 2015).
It is important for the company to take into consideration proper rules and regulations so
that activities can be conducted smoothly. In India there is high political pressure for higher
wages and it is one of the biggest threats for the company. It is seen there are many taxation
policy like VAT which is important to be considered by the company. There are also many rules
and regulations related to FDI in India.
Economic Factor
In the Retail industry sector there are various factors that give direct impact on the overall
performance of the Wal-Mart. It is seen that in India the economic downturns are seen and also
the currency exchange will give direct impact on the performance. In India, the company is
facing issues related to unemployment and also inflation rate. These factors give direct impact
on the overall profitability and growth of the company. It is seen that the company has invested a
lot in 2008 on lobbying to increase the market access for investment (Selmi and Tsakos, 2015).
Social factor
There are various challenges that are faced by the company like people of India prefer to
buy fresh vegetables and grocers as compared purchasing from supermarkets. In India, it is seen

Wal-Mart 3
that due to a shortage of the resources standing in a queue is one of the major disadvantages for
the company. It is seen that Indian firms are more hierarchical if a comparison is made with the
western companies. (Dholakia et al., 2017).
Technological factor
To be competitive in India, the company should focus on considering latest technologies
so that growth can be achieved. The company should focus on promoting digital means of
business through introducing the applications in the market. It is seen that company also
conducts the activities through applications. So it is important to promote the application system
in India so that growth can be achieved effectively.
Environmental factor
The company should also focus on giving paper bags so that environment can be secured
in a proper manner. In India, the ban is also imposed on the usage of plastics so the company
should emphasize to use paper pages.
Legal Factor
It is important for the company to consider the Wages act so that activities can be
conducted properly and effectively. In India, the company has the opportunity to consider food
safety regulations so that the satisfaction level of the customers can be enhanced.
Micro analysis
Porter five forces analysis
The bargaining power of the buyer
It is seen that the company has less power in the retail sector. The company has to face
pressure because of many suppliers in the industry. Also, it is seen that a large number of buyers
have a strong force on the company and also weak force is seen on the individuals who purchase
the product in a small quantity.
Bargaining power of suppliers