PESTLE Analysis of Walmart: Opportunities and Challenges

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PESTLE ANALYSIS OF
WALMART

INTRODUCTION AND BACKGROUND OF THE
WALMART
WalMart company is one of the largest retail
company and largest corporation by revenue in
all over the world. The founder of the company
was Sam Walton who found this company in
1962. they have remained the family-owned
business in the market. This is also one of the
most valuable company in all over the world.
They have approx. 2,500 stores in 15 countries
with different names.

POLITICAL
In the Wal-Mart company the political factor
are the most important factor that will always
try to operate there business in some of the
international sphere. With the help of different
type of political structures and differing
governance models the international business
will be identified.

ECONOMIC FACTOR
Most of the time the Walmart company was
blamed for the GDP when the ratio of the sale
is very bad. On the basis of the fact this is
analyzed that the GDP of the company was
2.3% in the Us economy.
The profit will be more when the cuts of the
wages are more and on the other hand the tax
amount will also increase.

SOCIAL FACTOR
Social factor is one of the most important
factor that will influence the profitability of the
international business. Some of the social
trends will influence the customer buying
behavior which will influence the profitability
of the brand.

TECHNOLOGICAL FACTOR
In the 21 century the technological factor is
one of the most important factor. The company
have less priorities on spending some of the
technical factor. Technological factor are most
important because most of the customer are
using the digital technology for purchasing the
product through online.

ENVIRONMENTAL FACTOR
In all business globally the sustainability is one
of the important concern. In the retail sector
business have to mainly focus on the waste
management and as well as many different type
of retail sector.
On the other hand the Wal-Mart company also
focusing on the responsible sourcing down the
supply chain.

LEGAL FACTOR
The company was one of the requirement of
laws and regulations. There are many different
type of laws that the retail brand are required
to maintain in there organization.
Most of the time the walmart company is trying
to make a better working condition of the staff
in there organization.

CONCLUSION
With the help of PESTEL analysis this is
conclude that walmart company have most of
the opportunity .some of the external factor is
present significant opportunities. The main
focus of the Walmart’s is to exploiting the
opportunities and identified the environment
of the retail business.