Wal-Mart Case Study Essay

1111 Words Feb 11th, 2011 5 Pages
III. External Environment: Opportunities and Threats

A. Societal Environment 1. Wal-Mart’s general environmental forces, which greatly impact the task environment, include technological, socio-cultural, economic, political, and legal forces. These forces tend to be challenging to identify and are affecting both the corporation and the industries in which it competes. Because they are indirect forces, which for the most part are out of management’s control, they may present threats and expose weaknesses. Some examples of environmental forces, which may present threats to Wal-Mart, are economic, political and legal forces. Being the world’s largest retailer means you’re the target of competition, locally and globally. As a global
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Technology: During the past two decades, Wal-Mart has been able to take advantage of the rise of information technology and the explosion of the global economy to change the balance of power in the business world. Technology plays a vital role in the operations and development of Wal-Mart and the company is well equipped with technological innovations like POS, strong performance tracking, real time market research, and satellite systems.
Political-legal: Other countries are always scrutinizing expansion plans, hence, they limit the sizes and expansion of Wal-Mart’s global plans. Because Wal-Mart is always under threat to sustain its top position in the market as the global leader, it causes the organization to be vulnerable to many socioeconomic and political problems.
Sociocultural: Wal-Mart is based in the U.S, which has a certain type of market. Their main concern with globalization and operating in different environments is to adapt their marketing strategies to the cultures of the countries in which they do business.

2. These forces are different in other regions of the world, but with Wal-Mart’s constant need for expansion in recent years, they have been able to market themselves effectively.

B. Task Environment

1. Forces Driving Industry Competition (Five Forces Framework)

Threats of new entrants
There is practically no threat of entry into the discount retail industry. Even though there is a plethora of small

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