Comprehensive Analysis of Walmart's Australian Business Environment

This presentation provides a detailed analysis of Walmart's business environment in Australia. It begins with an overview of Walmart's global presence and financial performance, emphasizing its significant revenue and market position. The analysis utilizes PEST (Political, Economic, Social, and Technological) factors to assess the external environment, highlighting Australia's supportive political climate, favorable economic conditions, and technological advancements. The presentation then applies Porter's Five Forces model to evaluate the competitive landscape, considering factors such as the threat of new entrants, supplier and buyer power, and the intensity of rivalry. Key strengths of Walmart such as its large number of stores, low pricing strategy, and online services are discussed. The weaknesses like high employee turnover and competition from rivals are also addressed. The presentation concludes with an assessment of Walmart's competitive advantages and future sustainability, indicating the potential for continued success in the Australian market based on economic and technological opportunities.

Speaker notes
Slide 1
Cover page (No speaker notes)
Slide 2
The key purpose is to analyze the business environment of Walmart to gain significant
knowledge of its opportunities, threats, strength and weakness in the Australian market.
Slide 3
It is assessed that Walmart is one of the recognize and valuable retail store. It offers its online
services in countries like China, India, Canada and Mexico (Walmart, 2019). Its high number of
stores and e-commerce sites has helped the company in generating recent revenue of 514 billion
U.S. dollars (Statista, 2019). Hence, it assisted the Walmart in becoming one of the largest
retailers in the world (Peter , 2018).
Slide 4
PEST (Political, Economic, Social and Technologic) analysis is a tool for understanding the
external environment of the company. PEST analysis is a management tool used for
understanding the Political, Economic, Social, and Technological environment of a country.
From the above factors, it is analyzed that Australia has a supportive political environment.
Thus, its low crime rate offers a safe business environment for Walmart. Additionally, the
government is supportive towards protecting the rights. Hence, it will lay significant attention for
safeguarding the trademarks, patent and copyrights of Walmart. Moreover, it also offers
incentives such as ‘R& D Tax’, ‘Restart incentive’. It can act beneficial for Walmart in the
Australian market.
Slide 5
It is assessed that the low-interest rate will save the Walmart cost in respect of financial
borrowings. High GDP rate, fine per capita income and the low inflation rate will foster the

company’s growth, as it will not face a threat of lower product demand. However, the low
unemployment rate will generate a challenge for the company in recruiting employees in
Australia.
Slide 6
The social factors suggest that Walmart should ignore the offering of family pack products and
laid emphasis in delivering individual offers in respect of the product. Additionally, enhancing
obesity problem in Australians develops an opportunity for the company to focus on developing
healthy food products to meet the growing problem.
Slide 7
The technological factors favor the Walmart work process in Australia. The high internet speed
will help the company in offering timely service to its online customers. The government support
for modernization will provide an opportunity for Walmart to develop innovative products.
Moreover, it will build a future opportunity for Walmart to avail the benefits of technological
development in Australia.
Slide 8
Porters five force model is a tool used for understanding the internal environment of business in
respect of specific factors (Verlang , 2011).
It is examined that Walmart will face a low threat from emerging companies. It is because
Walmart, Target and Amazon already had the patent, copyright and established goodwill.
Additionally, these companies have loyal customers as they are offering to serve for a long
period.
It is assessed that suppliers bargaining power is high in the supermarket industry. It is because
there are only restricted suppliers like Walmart, Coles, Target and Amazon. Moreover, these
suppliers operate on large scale attains certain control over the market activities in Australia.
Slide 9

It is evaluated that customers attain low bargaining power as Australia has a large number of
potential customers with respect to the supermarket. Additionally, customers have only a few
major suppliers to purchase from, thus they have less alternative suppliers. Hence, they have
mere negotiating power in the market.
It is a threating force for Walmart as there is easy availability of substitute products in the
Australia supermarket industry. Its rivals companies like Coles and Amazon offers product
identical products at low prices. Coles had dropped the price on its online channels to attract
rivals companies customers. Thus, it makes it hard for Walmart to retain its customers.
Slide 10
As mentioned previously, Walmart is one of the largest grocers and therefore it has a more
number of grocery stores over its competitors. It has also enhanced its online services leading
higher sales. Its simplicity in its online services has also helped Walmart in gaining the
advantage.
It has a large base of customers that buy pet products from Walmart. It leads over its competitors
in selling pet products.
Its marketing strategy (Everyday low prices) has assisted the company in retaining maximum
customers. It offers the product at a relatively low price than its competitors. Hence, this helped
Walmart in developing a competitive advantage over its customers.
Slide 11
It is evaluated that Walmart is serving since 1962 and it became successful in establishing
goodwill in the market (Walmart, 2019). It leads to the development of potential customers that
helped in gaining higher revenue. Its low pricing strategy leads to the creation of high demand in
the market. Additionally, it has 11766 stores that have helped Walmart in generating higher
revenue (O'Connell, 2019).
It is examined that Walmart has faced an issue of high employee turnover because it offering low
wage rate to its workforce. It is enhancing the cost of the company, as it has to spend in retention
and new employees training (Glassdoor, 2019).

With the emergence of rival companies like Target, Amazon and Kmart, it is facing the problem
of homogeneous products. It has developed a challenge for developing a differentiated product
from its rivals.
Slide 12
It is assessed that because of higher management authority of Walmart it was able to enhance its
service by opening a large number of physical and online stores. Walmart marketing department
has helped in generating effective revenue with the strategy of ‘everyday low pricing’. Because
of the marketing department strategies, it was able to retain the advantage of acquiring a large
share in the pet products
SLIDE 13
In relation to the future sustainability of the identified competitive advantage, it is analyzed that
strength in online and offline channels will continue to prevail as it has established goodwill and
with the growing population, demand will also rise. Advantage of achieving the higher sale of
pet products cannot be determined as it highly depends on the customer’s preference in the
future. It is examined that is the marketing strategy of ‘every low price’ will have a low
possibility to sustain in the future, as customers want new offerings and benefits from the
company. A single marketing strategy cannot benefit the company for a long time as it loses its
essence with the rise in time.
Slide 14
It is analyzed that Economic and Technological environment offers future opportunities for
Walmart. It has a passable internal environment and attains quality strengths over its weakness.
Hence, these factors will assist the Walmart in availing future business opportunities in
Australia.
Slide 15, 16 and 17 (No speaker notes)
References