Wal-Mart has been the chain of business that has its units of departmental stores and the grocery stores. Walton family is the owner of this chain. It has been a multinational group of stores based in America. The company was founded in 1969. Walmart has now more than 11000 stores operating across the globe. By revenue, Walmart has been considered as the world’s largest company. It has the largest number of private employees working in their stores globally. The number of these employees has been reached to around 2.3 million. It is, therefore, imperative to delve into the detail of the pestle analysis of such a big brand.
The political factors include the external factors like governmental factors. These policies are derived from the government. These policies sometimes could be tax reforms that directly laid impact on the company as it affects the sale price of the goods in the store. The political stability of the region in which the company is working wills certainly an opportunity for the company. Likewise, good intra-governmental relationships are also a source of opportunity for the global companies like Wal-Mart with a lot of competitors. The threat factors include several policies of the government pertaining to the expansion of business is one of the major threat for the Wal-Mart. For instance good economies like USA and Canada the business of a company like Wal-Mart is best, while in the regions of third world countries the process of opportunities is halted in an indirect way.
The performance of the company like Wal-Mart is directly proportional to the economic stability of the state in which the company is working. Same way in the regions where the countries are more developed there are more avenues for opportunities of the company. Common factors affecting the consumers like high taxes, tight credit and reduction in government benefits require the company to follow proper strategies and the right future plan. The economic downturn can impose serious implications on sales and profitability of Wal Mart so the company also requires a smooth strategy to move through in time of financial crisis.
The social factors encompass the beliefs and lifestyle of the people and most importantly the culture of the region. For instance, the modern state people are more prone to live a life with good lifestyle and they found the certain luxury products available in the stores of Wal-Mart as a basic need, this culture becomes an opportunity for the companies like Wal-Mart. The states where the population is more conscious about the local products, such maxims could sometimes be a threat and sometimes an opportunity for the global. The trend of using the cheap and local brands often becomes a threat for the global good producing company like Wal-Mart.
The moderate Research and development in the realm of goods selling industry have always been a great opportunity for the companies like Wal-Mart. The improvement in knowledge management system with the help of technological advancement is an opportunity. The increased trend of automation in business strategies is certainly a great opportunity for the expanding the business for the international recognized companies like Wal-Mart which has its stores in different parts of the world. The other technological factors include the trend of marketing using the internet and many other latest technological tricks. Therefore, this technological renaissance has explored many new avenues as opportunities for the goods selling companies like Wal-Mart.
The legal elements are always there to bind the competitors and Wal-Mart. For instance, various regulations like health safety regulations are great opportunities for Wal-Mart goods selling industry. Many other legal aspects of the governmental reforms also laid a direct impact on the companies like Wal-Mart. The legalities sometimes act as the bindings which act as the hurdle on the way of expansion of the company. There are however possible benefits of these legal issues as well.
These factors encompass the high standards and expectations on the waste disposal related policies. There should be the focus on the sustainability of the business. One of the world’s concerns that are climate change is sometimes the threat and sometimes an opportunity for the global companies like Wal-Mart.
They provide more organized business environments to the related companies like Wal-Mart. Wal-Mart has been one of the greatest companies. The bottom line of the above discussion is that there are a plethora of opportunities for Wal-Mart.. On the flip side, there are also many possible threats in terms of competitors and change in the global scenario pertaining to the new legalities and business practices. Wal-Mart has always focused on the realm of product need, which assists the company in maintaining the stability and the worth in the whole industry.