International Marketing Report for Walmart: Environment Analysis

Walmart
International Marketing Report
Environment Analysis
Table of Content

Running Head: International Marketing P a g e | 1
Brief Introduction..................................................................................................................................3
Macro Environmental Forces.................................................................................................................4
PESTLE Analysis......................................................................................................................................4
Political..............................................................................................................................................4
Economic...........................................................................................................................................5
Social.................................................................................................................................................5
Technological Force...........................................................................................................................5
Legal Force.........................................................................................................................................6
Environmental Force.........................................................................................................................6
Porter Model of Analysis.......................................................................................................................6
Competitive Rivalry............................................................................................................................7
Bargaining Power of Buyers...............................................................................................................7
Bargaining power of suppliers...........................................................................................................7
Threat of Substitutes.........................................................................................................................8
Threat of New Entrant.......................................................................................................................8
Internal Business environment analysis................................................................................................8
Porter Value chain.................................................................................................................................8
Inbound Logistics...............................................................................................................................9
Operations.........................................................................................................................................9
Outbound Logistics............................................................................................................................9
Marketing & Sales..............................................................................................................................9
Service.............................................................................................................................................10

Running Head: International Marketing P a g e | 2
Infrastructure..................................................................................................................................10
Human resource Management........................................................................................................10
Technology development................................................................................................................10
Procurement....................................................................................................................................10
Reasons for Success or Failure in the Indian Market...........................................................................10
Lessons to be learnt.........................................................................................................................11
Evaluation of Entry strategy of Walmart in India Market....................................................................11
Alternate Strategy for Walmart.......................................................................................................12
Marketing Mix of Walmart..................................................................................................................12
Conclusion...........................................................................................................................................13
References...........................................................................................................................................14
Appendices..........................................................................................................................................16
Appendix 1.......................................................................................................................................16
Appendix 2.......................................................................................................................................17
Appendix 3.......................................................................................................................................17

Running Head: International Marketing P a g e | 3
Brief Introduction
Walmart is the brain child of Sam Walton who founded the company back in 1962 and incorporated
in 1969. The American MNC operates a large chain of hypermarkets, discount departmental stores
and grocery stores all across the globe. The giant retail corporation has around 11,718 stores and
clubs operating in 28 countries. Walmart is the world’s largest company by revenue ($480 Billion)
according to Fortune Global 500 list in the year 2016(Wynne, 2016). India is one of the fastest
growing economies in the present day and Walmart never ceases to assess the opportunity for
growth. The first store in India was opened way back in 2009 in joint collaboration with Bharti
enterprises. Ever since, the company owns and operates around 21 best price Modern Wholesale
stores with 5000 items as product offering in the format of cash & carry wholesale format for Indian
mom and pop grocers(Greenspan,2015). Walmart solved the problem of around millions of such
small retailers by being one stop solution for their grocery needs. The driving values for the Walmart
stores are; best prices with unmatched convenience, choice, quality and hygiene (Lukic, 2016).
However, due to onerous regulation, FDI regulation the company is unable to sell to big retailers and
the consumers directly. This is affecting the company’s growth prospect significantly.
The purpose of the assignment here is to present a consultancy brief to the Board of directors. On
Indian market analysis and recommend a suitable strategic and operational marketing programme
for increased penetration. The brief will analyse the organization’s micro and macro environmental