Business Strategy: PESTEL, SWOT, and Porter's Five Forces for Walmart

This report provides a detailed analysis of Walmart's business strategy, examining its external and internal environments. The PESTEL analysis assesses the political, economic, social, technological, environmental, and legal factors impacting Walmart. The SWOT analysis evaluates the company's strengths, weaknesses, opportunities, and threats. The Porter's Five Forces model is used to analyze the competitive landscape, including the bargaining power of buyers and suppliers, the threat of new entrants and substitutes, and competitive rivalry. The VRIO framework is applied to assess Walmart's core competencies. The report also discusses strategic planning concepts and frameworks relevant to Walmart, aiming to understand how the company can achieve its goals, such as increasing sales and maintaining a leading position in the industry.

BUSINESS STRATEGY

TABLE OF CONTENT
INTRODUCTION......................................................................................................................3
TASK 1......................................................................................................................................3
P1 Evaluate PESTEL Analysis for given organisation to assess external environment........3
TASK 2......................................................................................................................................5
P2 Assess micro environment and capabilities in context of organisation............................5
P3 Utilize porter five force model in relevance with organisation.........................................7
TASK 4......................................................................................................................................9
P4 Apply concept/ frameworks for strategic planning in relevance with organisation..........9
CONCLUSION........................................................................................................................12
REFERENCES.........................................................................................................................13
Books and Journals...............................................................................................................13

INTRODUCTION
Business strategies of procedure that assist in carry out various activities in improved
way. It is important for supervisor to manage appropriate strategy for attain competitive edge
over rivalries. In assistance of this it is considered as policies that assists the business
organisation for achieving goal. It is also vital to execute latest technology in order to carry
out the task in improve manner. This report is discusses about the company named as Wal-
Mart. It is the American International retailing company that is founded in the year of 1962
by Sam Walton. They deal with the product such as furniture, Sporting goods and fitness
groceries as well as soon. In this assignment the PESTEL as well as SWOT is a Framework
adopted for analysing the micro and macro environmental factor of company in successful
manner. Apart from this the Porter generic strategy and Bowman model is used by
organisation for accomplishing competitive edge over rivalries. The main objective of Wal-
Mart is to increase sales by 20% in the upcoming 2 years. The vision of the organisation is to
achieve leading position at work place. The mission of the organisation is to provide the
innovative as well as specific product and services to its user for satisfying them (Puranam
and Vanneste, 2016).
TASK 1
P1 Evaluate PESTEL Analysis for given organisation to assess external environment.
PESTEL analysis is a Framework which is adopted for assess the external
environmental factor which imposes direct impact on business organisation. It is the duties of
organisation to monitor and control the modification or alteration that must be differentiate
from its rivalry firm in order to gain competitive edge. This analysis which is adopted by
Wal-Mart that is going to be given below:
Political factors: Political factor includes taxation policy, fiscal law, trade, tariff and
many more. Due to interference of the government so that the organisation it is not possible
for organisation to obey the policies which are implemented by government thus it affect
negatively. On the other hand due to political stability the company run their operations in an
appropriate manner that increases its sales.
Economic factors: It involves unemployment rate, interest rate, exchange rate and
many more. Due to increase in rate of inflation as well as devaluation of currency than it

imposes negative impact on the operations or running of business organisation. On the other
hand they provide the product as per the need of customer it favourably affect the consumer
necessity regarding product as well as services which is provided by Wal-Mart.
Social factors: The social factors include population growth, attitude and Trends as
well as many more therefore it is important for organisation to provide the product as per the
need of customer for increasing their profit margin. On the other hand is the demand or
necessity of customer is changed in quick manner then it is not possible for company to
follow the policy for satisfying the customer.
Technological factors: Due to research and development, advanced technology as
well as many more in order to gain competitive edge it is good for company and they use
innovative method for increasing their profit margin. If the Wal-Mart adopt advanced
technology than the cost of technology is very high and add extra cost to the product then it
impose adverse impact on company.
Environmental factors: The environmental factor involves weather, temperature
climate as well as many more such kind of elements impact on advertising as well as
marketing of organisation. Therefore the company always focuses on providing eco-friendly
product to its customer for satisfying them. On the other hand due to producing the product it
impact on the environment and harm to the environment then it does not achieve the
objective of organisation (Brewster, 2017).
Legal factors: The legal factor involved agreements, commitments, consumer law as
well as many more. The Wal-Mart focuses on follow or obey all the legislation for satisfying
customer whereas the legal policy change very frequently therefore it is not possible for
company to follow all the policy related to legality then it adversely affect the company.
PESTEL analysis adopted to assess the impact of external environment on success as
well as growth of organisation that is going to be mentioned above.

TASK 2
P2 Assess micro environment and capabilities in context of organisation.
SWOT analysis is a tool which is used for assessing weakness, strength, opportunity
and threats and so on in reference of Wal-Mart the supervisor used this Framework that is
discussed below:
STRENGTH WEAKNESSES
 It is considered as a largest
International online retailing
company thus it is considered as a
strength for company
 The organisation provide latest
technical mode in relation to website
for tracking, managing sales and
managing CRM (Namazi, Dehghani,
and Ghoohestani, 2017).
 The main weaknesses of Wal-Mart is
Law suit which is confronted by
company on the basis of giving bad
treatment to subordinate then it
decreases their motivational level and
increases turnover rate.
 Due to large number of the
competitive firm it is not possible for
company to gain competitive edge
then it is the weakness for the
company.
OPPORTUNITIES THREAT
 Due to the expansion or boosting of
presence in multinational Markets and
provide the online services through
the online outlets then it is considered
as an opportunity for the organisation
 They also focus on the health of the
customer and provide the innovative
product to its customer and also
implement advanced technology that
is determined as an opportunity for
organisation.
 There are various retailers which
operate the business at global level
such as Tesco Amazon and many
more than it adversely affect the
company.
 Economic recession as well as threat
from social factor from various
communities is against the rules on
legislation of organisation is the
weakness of the company.
VRIO Analysis

The Framework is adopted by Wal-Mart for assessing the core competency as well as
it helps the organisation in a completion sustainable competitive rivalry firm. Therefore the
framework in relation to VRIO that is going to be mentioned below:
Valuable: The valuable resources are considered as those resources which are
valuable for organisation ( Hernaus, Vuksic and Štemberger, 2016). There are effective
inventory management, large and global network of supply chain, brand equity as well as
technological innovation are valuable resources for Wal-Mart. Due to International network
of supply chain then it is easy for company to provide the product as well as services as per
the need of the customer and their supply in every corner of the world. And due to efficiently
managed inventory than they provide the inventory on the right time. On the other hand due
to good brand position of the product as well as services and provide innovative product for
implementing Technology then these are considered as a valuable resource of organisation.
Rare: Rare involve those kinds of resources which provide unique or differentiate
product or services to its user. The supervisor of Wal-Mart focuses on providing rare or
unique resources to its customers. The rare resources such as brand equity, Technology
Innovation and effectively manages the inventory and so on. Therefore they focus is on
managing the inventory in effective manner in order to satisfy the necessity of the customer
on timely manner. And due to good brand image as well as innovative technology they offer
product which is not duplicated by the rivalries firm.
Inimitable: Inimitable resources are those resources that is not copied or duplicated
by any other rival firm therefore they focus on providing that kind of product which is not
imitable. The manager of Wal-Mart focuses on brand equity as well as implement advanced
technology for gaining competitive edge then their first priority is the customer necessities
that must be satisfy in given period of time.
Organised: Due to the implementation of latest technology it is considered as an
organised resource for the organisation they provide superior quality product to its user for
gaining more and more profit margin at market place. It also helps in boosting profit margin
during the particular phase of time period.
The VRIO and SWOT analysis is used for assessing the internal capability of business
organisation. It is the responsibility or duty of manager of Wal-Mart to consider the internal
or external environment for grab the opportunity or minimise the threat at workplace. They

also adopt the promotional technique for marketing their product in improved manner
(Defrancq, Huyghebaert and Luypaert, 2016).
TASK 3
P3 Utilize porter five force model in relevance with organisation
Due to change in the environment of organisation rapid level it is necessary for
organisation to tackle the innovation as well as level of competition at market place. It is
necessary to execute appropriate strategy within organisation for survival and maintenance in
long duration of time. Therefore in this assignment the Porter five force models is a
Framework that is adopted to assess the competition that is confronted by organisation and
affect the productivity level of company. It is considered as a time-consuming technique but
it is appropriate and used by Organisation. In reference of Wal-Mart they adopt that kind of
method in order to remove the uncertainty at market place in improved manner. There are
many competitor of the given organisation such as Tesco and Amazon. In the given
framework, the threat of new substitute, competitive rivalry, bargaining power of suppliers,
as well as threat of new entrants and many more is explained or used by the Wal-Mart that is
going to be given below:
Bargaining power of buyers: The bargaining power of the consumer in case of Wal-
Mart is not too high as the user do not focuses on spending their money on bulk purchase. In
assistance of this due to the prices as well as convenience related to the shopping are
considered as the element which decreases the bargaining power of consumer. And the cost
of switching of buyer is considered very low because it is difficult for them to find the similar
product at relatively less price. Therefore it has been stated that due to the good pricing
strategy of Wal-Mart it reduces the bargaining power of buyers. Therefore the customer has
influence or impact on the brand (Wahyuni, Fahada and Atmaja, 2019).
Threats of substitutes: Wal-Mart is considered as a leading retailing organisation or
wide variety of product to its customers such as groceries, hardware, health, entertainment
and many more therefore it has been stated that threat of substitute goods is a weakness for
the organisation because it is considered as a good point because they provide wide range of
product to its customer. There are many firms who operate their business to target the Wal-
Mart then it is considered as a threat for organisation.

Competition rivalry: There are various competitive firms such as Amazon, Tesco
and many more. Due to increasing level of the competition it is not possible for the firm to
face the challenges in relation to the price or cost of the product as well as services but on the
other hand due to the leading position of the Wal-Mart in international level then company
provide the product as well services that is unique in quality help in gaining competitive
benefits over rivalries. They focus on providing the luxurious goods and services to its
customer for achieving competitive edge.
Bargaining power of supplier: The supplier bargaining power is insubstantial in
reference of Wal-Mart because of their size as well as scope of organisation. The company
focuses on charges the low price for gaining competitive edge as well as the manager of Wal-
Mart focuses on follow the Wide range of specific requirement that is connected to the health
of the employees, employee insurance as well as any other factor it help in maintaining the
good relationship between the supply as well as consumer they also use different techniques
for achieving CSR is strategy that is the main benefit for the organisation (Aronoff and Ward,
2016).
Threats of new entrants: The threat of new entrants of the organisation is low in
case of Wal-Mart. The Waymart operate their business at high level therefore it is not
possible for a small firm to run their business at that level. It need large number of investment
as well as knowledgeable labour and HR to manage the level of work that is similar to the
Wal-Mart therefore due to the requirement of high use of fund that generate the risk for
company regarding new entrance therefore the present organisation are already facing so
many challenges or difficulties while handling the price related to Wal-Mart.
On the basis of analysis it has been analysed that it is necessary to adopt the Porter
five force model to for survival as well as maintenance of organisation at market place. It
helps in completion of goal during the particular phase of time period. Moreover it is
necessary to gain effective information in relation to competitor as well as market trend in
improved way. Therefore the decision must be taken on improved manager and the
innovative techniques applied for unique brand it is used in improving the progress of
organisation and minimise the wastage of resources during the particular phase of time period
(Hu, Leopold-Wildburger and Strohhecker, 2017).

TASK 4
P4 Apply concept/ frameworks for strategic planning in relevance with organisation
Strategic planning is essential for Organisation in order to enhancement of growth at
wider level. By the adoption of strategic planning it is necessary to assess the opportunity at
market place and that assists in their functions around The World. The strategic planning
helps in increasing the level of productivity in order to gain competitive edge. They also
focus is on implementing innovative ideas as well as thought in order to confront the various
challenges and issues in an appropriate manner. Therefore the appropriate strategic planning
is adopted by Wal-Mart for management as well as very strategy adopted at various levels in
order to perform the various functions and difficult task in easy manner. There are two types
of model Porter generic strategy as well as Bowman model that is going to be mentioned
below:
 The main objective of Wal-Mart is to increase sales by 20% in the upcoming 2 years.
 The vision of the organisation is to achieve leading position at work place.
 The mission of the organisation is to provide the innovative as well as specific
product and services to its user for satisfying them.
 The strategy which is adopted by Wal-Mart is differentiating products in order to
gain competitive edge over rivalries.
 It is necessary to execute strategy for satisfying the demand of customer at
marketplace at relatively less price.
 After implementation of this strategy they evaluate actual and desired performance in
order to take effective decision at marketplace.
Porter Generic strategy
Porter generic strategies model is used to gain competitive advantage over rivalries at
market place. The focus is on providing the product as well as services at relatively less price.
In context of Wal-Mart the Porter generic strategy that is going to be given below:
Cost leadership the manager of always focuses on providing the product as well as
services which is unique at relatively low cost in order to gain competitive advantage over
rivalries therefore they also focuses on adopt latest technology in order to provide the product
as per the necessity of customer for satisfying their necessity during the particular phase of
time period (Ward, 2016).

Differentiation it is important for the manager of Wal-Mart to provide the product
which is different from its competitive firm in order to gain competitive edge oval rivalries.
Therefore it is the responsibility of the R and D department of Company to collect the
information regarding the competitive strategy for collecting information regarding
individual person of an organisation. Therefore they always provide the product which is
differentiate from its rivalry for increasing their profit margin.
Focus cost leadership their main focus is to provide the product and services at low cost for
satisfying the necessity of the customer.
Focus differentiation here in the main focus of the manager of Wal-Mart is to offer
the product as well as services to its customers for fulfilling their necessities at low cost.
Therefore from the above mentioned analysis it has been stated that the Wal-Mart use
the differentiation strategy in order to gain competitive edge over rivalries. The offer the
unique and specific product and services to its customer for gaining competitive advantage at
marketplace.
Bowman’s Model
Bowman’s model explores the options for achieving the strategic position at market
place. Therefore as per this model there are two dimension like perceived worth or value as
well as price therefore the Bowman model which is adopted by Wal-Mart that is going to be
mentioned below:
Low price and low value added Herein, the product is not unique for the customer
and they perceive little worth despite the low cost. Therefore it is necessary for organisation
to provide cheap or high quality product to its customer for the survival and maintenance of
organisation (Sánchez-Herrera and Donate, 2019).
Low price here in the business organisation is considered as the low price leader at
market place. A strategy related to minimise the price which is needed for being successful
and focuses on increasing the profit margin of goods and services.
Hybrid: Herein in case of hybrid position of this model there are various elements
related to low price and also the element related to the differential product. The focus is on
influencing the consumer and provides the value added product to its customer as per their
need at relatively low price in order to gain competitive edge at marketplace.

Differentiation: The main purpose of the differentiation model is to provide the
biggest level of perceived value to its buyer. The focus is on the branding not the quality of
the product here in the main focus of organisation is to provide the branded product rather
than quality product.
Focused differentiation As the name is stated their main focus is to provide the
product which is different from its competitive firm. The Wal-Mart focuses on using different
promotional techniques such as advertisement and sales promotion for attracting customer
towards their unique as well as innovative product and it also help in retaining customer for a
longer period of time.
Risky high margin if the organisation set high level of price then it can decrease the
profit margin of the organisation. Therefore the main purpose of Wal-Mart is to adopt the
risky strategy in order to gain high rate of return. It increases the profit margin and sales
during the particular phase of time period.
Monopoly pricing the Wal-Mart focuses on providing the product which is not
provided by its competitive form in order to increase their Goodwill as well as reputation in
mindset of customer or user at market place therefore they adopt to the Monopoly strategy for
attracting ample of customer at market place (Beynon-Davies, 2020).
Loss of market share for attracting large of number of customer it is necessary for
organisation to set middle range of price in order to retain them for a longer period of time it
also helps in competitive edge of rival firm at Marketplace.
The company adopt the differentiation strategy in order to provide the differentiate
products as well as services to its customer for satisfying the necessity during the particular
phase of time. Therefore, the main focus is to provide branded product to its customer for
retaining them for a longer period of time. It increases success and enhancement of
Organisation in front of customer at market place (Rabetino, Kohtamäki and Gebauer, 2017).
Strategic planning is essential for Organisation in order to enhancement of growth at
wider level. By the adoption of strategic planning it is necessary to assess the opportunity at
market place and that assists in their functions around The World. The strategic planning
helps in increasing the level of productivity in order to gain competitive edge. They also

focus is on implementing innovative ideas as well as thought in order to confront the various
challenges and issues in an appropriate manner. Therefore the appropriate strategic planning
is adopted by Wal-Mart for management as well as very strategy adopted at various levels in
order to perform the various functions and difficult task in easy manner.
Objective: The main objective of Wal-Mart is to increase sales by 20% in the upcoming 2
years.
Vision: The vision of the organisation is to achieve leading position at work place.
Mission: The mission of the organisation is to provide the innovative as well as specific
product and services to its user for satisfying them.
Strategy: The strategy which is adopted by Wal-Mart is differentiating products in order to
gain competitive edge over rivalries.
Implementation: It is necessary to execute strategy for satisfying the demand of customer at
marketplace at relatively less price.
Evaluation: After implementation of this strategy they evaluate actual and desired
performance in order to take effective decision at marketplace.
CONCLUSION
Business strategies of procedure that assist in carry out various activities in improved
way. It is important for supervisor to manage appropriate strategy for attain competitive edge
over rivalries. In assistance of this it is considered as policies that assists organisation for
achieving goal. On the given is assignment it is stated that it is necessary to make appropriate
strategy for survival as well as maintenance of organisation at market place in this assignment
there are various kinds of tools such as Porter generic strategy and Bowman model for
gaining competitive edge. In this assignment the PESTEL as well as SWOT is a Framework
adopted for analysing the micro and macro environmental factor of company in successful
manner. They focus is on meeting the necessity of the customer. To execute this kind of
model the organisation focuses on taking good decision at the right time. Therefore it is the
duty of organisation to achieve goal within a given time period. It helps the company in
selecting the appropriate model for increasing the level of productivity of organisation they