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Walmart External Environment

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Walmart Stores Inc. The giant retailer, Walmart is an American based public multinational company; operates a chain of Walmart stores, Sam’s club, Walmart international. Sam Walton founded the company in 1962. From the beginning, he introduced Walmart as a store which provide the goods at lowest price. Its headquarter is in Bentonville, Arkansas. The mission statement of Walmart is “saving people money so that they can live better” with the purpose of Walmart has positioned itself as a giant retailer, which offers the goods and services at the cheap price. Through the SWOT analysis, one can be clearer about the internal and external environment and the issues that critically affect the business of Walmart. The brand reputation Walmart is one …show more content…

(2013). Wal-Mart Vs. Amazon: World's Biggest E-Commerce Battle Could Boil Down To Vegetables. [online] Forbes. Available at: http://www.forbes.com/sites/clareoconnor/2013/04/23/wal-mart-vs-amazon-worlds-biggest-e-commerce-battle-could-boil-down-to-vegetables/. And because of the Globalization, businesses have easy access to the international market. Walmart in order to penetrate and grow uses acquisition and joint venture as they're part of a strategy. And while, going globally comes along with an unexpected threat. There are already tough local competitors that existed as a threat to Walmart, and the difference in culture or trends in other parts of the world, made Walmart harder to fit in that environment. Walmart corporate culture does not fit in the other parts of the world. For example, in 1997 Walmart acquired two German store chain named Interspar and Wertkauf and penetrated in Germany. Being new in the German market, Walmart could not understand what German shoppers want. While there were already very strong local competitors like Aldi, Metro and Lidl, which almost had basic information about what German shoppers want and seek for. On top of that Walmart had an American manager, who could not even speak German. Similarly, had staffs with smiley face and help customers to pack things, which in German culture is seen suspicious and uncomfortable. Later, Walmart knew the problem and changed the culture, but it was already very late to react. Walmart had only …show more content…

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