The paper "Wal-Mart PESTLE Analysis" is a great example of a marketing case study. In the year 1962 when Sam Walton started Wal-Mart com, the idea of putting up a discounting shop store right into rural America was never heard of except for the dime stores and local five. When the founder Sam realized that he had a lot of competition from the discount chains regionally, he together with his wife travelled all over the country so as to research on new retailing concepts since they were convinced that this was the wave of the future.
With his vision, Wal-Mart has grown to be a multi-billion dollar company having over 4600 outlets all over the world. Wal-Marts is the largest retail shop with: 5912-Drug stores and Proprietary stores, 5812-Eating Places, 5331- Retail-Variety stores, 5399-Miscellaneous General Merchandise store, 5311-Department stores and 5411-Grocery stores. 2.0 The external environment of Wal-Mart The external environment of Wal-Mart will be summarized as follows: 2.1 Political The response of Wal-Mart to the hurricane was really appreciated even by its critics. Walmart donated over $ 20 million worth of goods including 100,000 meals and even promised to offer jobs to all those who had been displaced.
This response to the hurricane was indeed inspiring and very fascinating. The distribution channel of Wal-Mart is able to deliver goods that are needed in an efficient and faster manner better than the government agency which has no existing infrastructure to respond to disasters. Consumption contributes up to 70% of America GDP and as long as Walmart continues to deliver accessible and quality products, then Wal-Mart will remain America’ s leading retailer and continued to expand.
Wal-Mart is the leading retailer and its value chain includes firm infrastructure components such as a frugal culture, a pleasant environment to work in and it has no regional offices (MMR 2010) 2.2 Economic Wal-Mart has been able to generate sales growth of up to 11% which is up to 6.4billion dollars despite the current weakening of the global economy and the prevailing uncertainty in the environment. Wal-Mart’ s associates have made the company to be successful in other places such as South Korea, China, the United Kingdom and Germany. In three decades, Wal-Mart has been able to grow from being a local company to the world’ s largest company and most probably the greatest retailer.
There is an opportunity for Wal-Mart in terms of free trade zone whereby if the government gets into a new trade agreement with other foreign countries, businesses like Wal-Mart will be able to offer their products to this will increase the retailers available. Wal-Mart awarded approximately $2billion in 2009 to the USA associates via financial incentives including profit sharing, bonuses, contributions and merchandise discounts to the associate stock purchase plan (MMR, 2011). 2.3 Social-cultural Wal-Mart stores have been geared to suit the low-income earner something that is well reflected by the company’ s tendency to be frugal innovation.
Frugal innovation has been a great pillar to this company and every associate of this company has had to adopt this value. The company has been able to saturate the market by allowing the smaller towns to dictate the popular culture (2011).
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