Walmart PESTLE analysis
Walmart, a well-known American brand is involved in the retail industry with its chain of stores across the world. It offers common use items to its consumers, involving a wide range of products varying in categories such as grocer, household items, apparels, entertainment, and several others. With a global presence, the company has made a dominant position in the industry thus becoming the number one company in its industry. This article offers the Walmart PESTLE analysis for those who are looking for Wal mart PEST analysis or Walmart PESTLE analysis as well as to get an insight about how well the company is performing in every front.
PESTEL analysis of Walmart is a framework that offers information regarding the macro environmental factors, which can influence the growth and operation of a business. PESTEL analysis of Walmart is one of the best practices to assess the external environment of the company. PESTEL analysis of Walmart can provide the business owner and management with the critical information about the factors that can positively or negatively affect the business operation of the company. Walmart PESTLE analysis or Wal mart PEST analysis will help in understanding the factors influencing the growth of the company. In this Walmart PESTLE analysis or Wal mart PEST analysis, all the factors that are directly or indirectly related to the company are discussed. Factors that impact the company’s operation and growth are discussed in this Walmart PESTLE analysis. This Wal mart PEST analysis or Walmart PESTLE analysis involves factors in points form, which are further briefly discussed to ensure that reader receive in-depth knowledge from this Wal mart PEST analysis or Walmart PESTLE analysis.
Political Factors
This is the first factor in this Walmart PESTLE analysis or Walmart PEST analysis. It is focused on the political scenarios for the company in a different location. Walmart PESTLE analysis shows that the company’s operations are aligned with government policies. However, the Walmart PEST analysis further shows that there is a political pressure on the company to increase the wages of the employees. PESTEL analysis of Walmart also reveals that the company has been supported by the globalization to very high extent. This Walmart PEST analysis also shows that the company has operations in high political stable regions.
Economic Factors
This emerges as the second factor in this Walmart PEST analysis or Walmart PESTLE analysis. It has always been very important for the company’s management to assess the economic factors under PESTEL analysis of Walmart. PESTEL analysis of Walmart provides the management of the company with important data regarding what and how economic factors are affecting the company’s business. It is focused on the stability of the economies, which offers the company an opportunity for continuous development. Walmart PEST analysis further shows that the company has managed to decrease the rate of unemployment in regions of operations. In order to cope up with the economic pressures, the company is offering a sales discount. With the help of Walmart PEST analysis, it is observed that the company is offering a discount on products to attract consumers. In the context of business expansion, PESTEL analysis of Walmart reveals that the company can enter into developing nations where the trend of retail stores is new. As per the PESTEL analysis of Walmart, the company can establish its presence in growing economies which will provide benefits to the company in terms of both financially and socially.
Social Factors
It makes for the third factor in this Walmart PESTLE analysis or Walmart PEST analysis. PESTEL analysis of Walmart shows that the stability in the major economies can offer an opportunity for the company to increase its growth. PESTEL analysis of Walmart discloses that people are adopting healthy lifestyle which offers a huge opportunity retailers like Walmart to sell healthy food items in their stores. Such kind of change can positively affect the business operation of the company. Apart from this, PESTEL analysis of Walmart also discloses that increasing cultural diversities also offer a vast opportunity for the company to sell a wide range of products to fulfil the demand of different population with different cultures.
As discussed earlier, the Walmart PESTLE analysis or Walmart PEST analysis shows that its discount offerings have managed to attract the consumers. In addition to all this, the Walmart PEST analysis further shows that the company has witnessed continuous growth in the developing economies, which can be due to the increase in the consumers’ knowledge, social culture and behaviours influencing them, regarding the company’s offerings and business. As the company operates in different diverse cultures, it has to overcome challenges every time. In addition, as per the market research conducted under PESTEL analysis of Walmart, the increase in urbanization further increases the expectation of the company regarding the offerings of healthy food. The company can take high benefits out of this trend.
Technological Factors
This is the fourth factor in this Walmart PESTLE analysis. There are several technological factors affecting the company’s business uncovered by PESTEL analysis of Walmart. Some of the main technological factors identified under the process of PESTEL analysis of Walmart are increasing trend of automation, use of big data technology, and increasing usage of mobile device. In PESTEL analysis of Walmart, it is observed that the use of automation in business and the use of business analytics and big data have also resulted in the growth of the company’s business. Walmart is also required to make use of big data analytic technology in its business operations in order to collect the information of its target customers. Another thing that is involved in Walmart PESTLE analysis is that it shows the increase in the use of smartphones among consumers, which has offered an opportunity to the company to grow. The number of mobile users is getting increased on daily basis with the growth rate faster than ever. Walmart PEST analysis reveals that it has increased online shopping trend among consumers and consumers can also use “search my store” app to find the stores near them. Therefore, the company is required to enhance its presence on online platforms in different geographical locations across the world.
Environmental Factors
Assessing environment factors is one of the most critical parts of Walmart PEST analysis. Walmart PESTLE analysis discusses about the business sustainability and the shifting towards the use of environmentally friendly items offer an opportunity to the company. The Walmart PESTLE analysis or Walmart PEST analysis further shows that the company has shifted its focus on the use of practices helping it in reducing the greenhouse gas and increase the recycling of items. In addition to this, the Wal mart PEST analysis also shows that the company is regularly participating in activities related to the preservation of wildlife. In total, as per the Walmart PEST analysis, the company is required to be highly focused on adopting sustainable business practices and offering environmental friendly products. In modern time, every company is putting emphasis on promoting and selling eco-friendly products and services as it helps them in enhancing brand image among general population and government. To obtain business sustainability, the company is suggested to improve its operational efficiency. In the context of environmental factors, as per the Walmart PEST analysis, the company can suggest the dealers, distributors and manufacturers to avoid the use of polybags and other materials that can negatively affect the environment and harm living bodies.
Legal Factors
Walmart PESTLE analysis also presents important information regarding the regulatory environment in which the company is operated. The Walmart PESTLE analysis shows that there is an opportunity for the company to strictly follow food safety regulations as consumers are likely to go for healthy food products. The government has set several policies and regulations regarding health issues such as child obesity. The company by reducing the sale of carbonate products with more healthy food items can change people perceptions about the company. Wal mart PEST analysis additionally shows that following the employment regulations in different regions can help the company business to grow. The company is bound to follow minimum wage policy designed by the government in order to fulfil the needs and expectations of the employees. However, one thing that the Walmart PEST analysis focuses on is the threat that the company can face from the tax reform across the world where the business operates. High uncertainty in global regulatory environment makes it a bit challenging for the company to remain sustainable in upcoming years.
