Explore BrainMass

External Analysis of Walmart's Environment

Perform either a PEST analysis or a Porter's 5 Forces analysis of Walmart (Which ever you think to be most relevant.) You may do both if you'd prefer.

Solution Preview

Because WalMart is facing pressures from every element of its external environment, it must update its strategy to grow in the global marketplace. WalMart faces challenges from its political environment. Governments are challenging it, labor unions are fighting it, and bribery charges have been leveled against it. It must comply with US and host country laws. It faces challenges from the economic environment because of economic slowdown, lower consumer demand, and high rate inflation. The social forces are against Wal-Mart. Consumers feel that Wal-Mart pays less to suppliers, exploits laborers, and supplies substandard goods. Others feel that Wal-Mart is outright unethical. Technology has revolutionized retailing. Customers are turning to online retailing and brick and mortar stores are being compelled to close down. Wal-Mart must transform itself technologically to keep up with the latest online and website based shopping.

Pest Analysis:
Political factors: There is political action law suit against Wal-Mart. Wal-Mart has been sued for gender discrimination. The current political climate all over the world favors a positive ...

Solution Summary

The response provides you a structured explanation of the political, economic, social, and technological environment of Wal-Mart . It also gives you the relevant references.