SWOT and PESTLE Analysis of Walmart

SWOT and PESTLE Analysis of Walmart

The SWOT analysis of Walmart

Walmart is considered as a U.S based multinational company that has their branches in all over the world. The internationally based company has made their specialization in non-food and food items. These items are being presented to customers at extremely low prices. The company has also tied their relations with local stores. The following parts discusses the SWOT analysis of Walmart, which thus provides a framework for making changes towards sustainable energy.

Strengths:

1. The company has established their reputation. They are considered as one of the largest online retailer.
2. Walmart has a large scale of operations based on which they are able to achieve good economic scales. This also includes the total volume of the products, which are being sold. Customers are offered a low price to be paid in order to purchase items from their stores.
3. They also offer a technologically advanced mode of information system in order to performing inventory, tracking, managing sales and customer relationship management. Such kind of technologies have been used by Walmart in order to perform real-time decision making.

Weaknesses:

1. Different lawsuits have been faced by the company in their treatment to their employees. This would also include unfair promotions, poor work environments and unequal wages.
2. The company also faces a huge lack of employee motivation and a high rate of employee turnover. Hence, there is a huge lack of social responsibility among their existing workers.
3. The company also does not provide a huge rate of shopping experience. Retailers are also not provided with a huge rate of service experience. Walmart also does not support any kind of differentiation among their stores.

Opportunities:

1. They have a huge open market to offer different form of western goods in developing countries. They also help in building business relationships with developed countries in which consumers are provided with the opportunity to seek options of bargaining.
2. Expansion of online stores and making a huge presence in the international markets can be seen as a huge opportunity.
3. Walmart is also supported with the option to introduce innovative products. This also includes healthier products.

Threats:

1. Various other global retailers such as Amazon, Costco, Tesco and many others pose a major threat towards the business of Walmart.
2. Walmart also faces severe social threats from various communities who are not in favor of the company.

The PESTLE Analysis of Walmart

The PESTLE analysis for Walmart includes the following sections. These are:

Political:

1. Walmart faces huge kind of political support from the countries in which they operate their business.
2. They also face extreme political pressure based on higher wages requested by employees.

Economic:

1. The type of economic system in various countries of operations is extremely favorable for Walmart.
2. Recession and economic slowdown within the U.S market have a negative effect over the demand of consumers within the products offered by Walmart. This could thus effect the slowdown of inventory turnover and net sale of products.

Social:

1. The skill level and demographics form a major factor over the business effect at Walmart.
2. Walmart need to increase the sale of healthy products, which would in turn increase their sales as consumers are becoming much more health conscious.
3. Cultural diversity among the people have also helped the company in increasing their customer base.

Technological:

1. Business automation forms a major factor towards the growth of technological aspects.
2. Proliferation of tablets, mobiles and laptops have helped in creation of opportunities to attract customers.

Legal:

1. Discrimination law is hugely followed by Walmart.
2. The company also enables data protection laws within their business structure, which helps in providing safety to consumer data.

Environmental:

1. Reduction in emission numbers can be considered as the challenge to the external environment of Walmart.
2. Walmart has also launched Gigaton Project in order to reduce environmental issues.