Walmart SWOT and PESTLE Analysis

ID : 521317853| Feb 2023| 21 pages

COMPANY PROFILE -Walmart

Business Sector :Retail, E-Commerce

Operating Geography :United States, North America, Global

About Walmart :

Walmart, one of America’s largest and most successful retail corporations, is the brain child of military veteran Sam Walton, who was a native of Oklahoma. It is headquartered in Bentonville, Arkansas, U.S. Established in 1962, Walmart has approximately 10,500 stores and is associated with 48 banners in 24 countries and eCommerce websites. The company is driven by the concept of "saving people money so they can live better". Walmart also offers the largest private employment opportunities in about 50 states of America and employs approximately 2.3 million associates around the world. It operates under four segments: Walmart U.S, Walmart International, Sam’s Club, and Walmart U.S. eCommerce. The company works with manufacturers to sell their products such as apparel, homeware, jewelry, hardlines, and more, under popular private label brands in the U.S, Canada, China, Mexico, Central America, United Kingdom, Africa, and India. Due to its outstanding performance during the Covid-19 crisis, Walmart ranks No.1 in 2022 Fortune 500.

Based on the core values and beliefs of its founder Sam Walton, Walmart’s vision is “To be the best retailer in the hearts and minds of consumers and employees.” Walmart’s unique selling proposition or USP lies in being one of the world’s most well-renowned and retail giant brands. Walmart’s mission statement reads, “To save people money so they can live better.”

Walmart Revenue :

US$ 572.7 billion – FY ending 31st January 2022
US$ 559.2 billion – FY ending 31st January 2021

Competitive Analysis of Walmart

SWOT

PESTLE

Walmart is one of the largest retail giants in America as it focuses on its mission to save people’s money and live better – anytime and anywhere in the world. Walmart provides all the essential of everyday life from groceries to entertainment in its 10,500 stores and eCommerce website. Walmart’s focus on sustainability, corporate philanthropy and employment opportunities acts as a core competency of the company. The SWOT tool facilitates to further discuss all the relevant internal and external strategic factors, particularly the strengths, weaknesses, opportunities and threats that predominate Walmart’s internal and external environment respectively.
The SWOT analysis helps to benchmark Walmart’s business and performance along with identifying its competitive position in the retail sector. The SWOT report depicts all micro and macro factors and influencers that have an enormous impact on Walmart’s business model, business, and marketing strategies.
Walmart is the largest retailer in the world and operates in 26 countries including U.S, Argentina, Canada, Chile, China, India, Japan, U.K, Africa, Central America, and Mexico. The “Every Day Low Prices” (EDLP) strategy gives a competitive advantage to the company resulting in increased demand of its merchandise. On August 2021, Walmart announced the launch of delivery services to small and medium size businesses. Consistent growth in its revenue, strong customer base and new innovative strategies are some of the greatest strengths of the company.
Walmart can further increase its strength by capturing and creating new growth opportunities. With the advent of Covid-19 pandemic in 2020, most of the consumers started to purchase groceries and other essential goods from online retailers. Walmart already has an eCommerce website; however it could further improve its online presence with new upgrades and other related innovations. Moreover, Walmart could further increase its geographical presence by expanding in U.S and other emerging countries such as India.
Due to the nature of its business, Walmart faces intense competition from retailers, wholesalers, and supermarkets. Also, the emergence of new-fangled eCommerce retailers poses threat to Walmart as they have advanced technology and strategy. Apart from this, there is also a risk of increased regulations and fluctuation in foreign exchange rates as Walmart has a large geographic presence.
The SWOT analysis for Walmart is presented below:

Strengths	Weaknesses
1. Largest retailer globally with strong operational presence in the United States 2. International growth and expansion in key markets 3. Extensive global supply chain consisting of over 100,000 suppliers 4. Offering quality merchandise through “Every Day Low Prices (EDLP)” pricing philosophy 5. Consistent increase in revenue over the years 6. Strengthened customer base through effectuating Walmart+ 7. Leveraging Artificial Intelligence (AI) for next day deliveries via express delivery channels	1. Legal charges over minimum wage payment impacting company’s image
Opportunities	Threats
1. Emergence of multichannel retailing a major trend 2. Expansion opportunities in United States 3. Strengthening its presence in emerging Indian Market 4. Innovating with technology to fuel growth	1. Competition with retailers, eCommerce retail, wholesalers, supermarkets and other stores 2. Increasing retail regulations across markets 3. Impact of fluctuations in the forex rates 4. Uncertain ROI from the Indian Market

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Detailed SWOT Analysis of Walmart

Strength

1. Largest retailer globally with strong operational presence in the United States: Keeping in mind its mission to save people’s money and live better – anytime and anywhere in the world, the company facilitates its customers to shop online as well as in retail stores. Walmart is built on customer-centric values, and continuously tries to improve the customer experience through innovation and integrating it in eCommerce and retail stores in an omni-channel offering that saves its customers’ time. In a week, more than 265 million customers visit Walmart’s 11,500 stores and numerous eCommerce websites under 56 banners in 27 countries.

2. International growth and expansion in key markets: The second largest segment of Walmart is Walmart International which operates in 26 countries outside of U.S. While in Argentina, Canada, Chile, China, India, Japan, and the United Kingdom the company operates through its wholly-owned subsidiaries, in Africa, Central America, India and Mexico the company operates though majority-owned subsidiaries. Walmart International’s business in divided into three categories: retail, wholesale, and other. Also these categories are sub-divided into several other categories including: supercenters, supermarkets, hypermarkets, warehouse clubs, and cash & carry, as well as through eCommerce websites such as Walmart.com.mx, Walmart.ca, flipkart.com, and many more. In fiscal 2021, the net sales of Walmart International accounted for $121.4 billion, representing 22% of its consolidated net sales.

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Weakness

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Opportunity

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Threat

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The retail industry saw a major transformation due to Covid-19 pandemic. The transition to eCommerce platform from traditional in-store shopping, increased urbanization, sustainability, digitalisation and major economic shift were some of the challenges faced by the industry during the fiscal year 2020. The PESTLE analysis focuses on these trends as well as manifests a discussion on other external influencers such as political, economic, social, technology, legal, and environment and their consequences on retail industry and Walmart. The PESTLE/STEEPL/PEST analysis report is a structure to explore the outgrowth of external factors on the macro-environment that influences the business of Walmart, its market strategy and growth trajectory. The PESTLE analysis is a useful technique to study the impact of influencers on Walmart’s business model and business case study.
Since Walmart largely operates in U.S and has an extensive global supply chain, it is significantly impacted by the U.S-China trade war. Walmart experienced a significant disruption in its supply chain after the Trump administration increased the tariffs to 25% on Chinese goods. Not only this, Donald Trump also increased the minimum age to buy guns to 21 which significantly impacted Walmart as it is one of the largest sellers of guns.
Although the global economy experienced a major slowdown in 2020, the global retail market experienced a decline of only 1% from $21821.4 billion in 2019 to $21622.6 billion in 2020, according to Global Retail Market Report. It is expected that the global retail market will recover in 2021 and grow at a CAGR of 5% to $25122.2 billion by 2023. This is going to benefit Walmart as the trend of increased urbanization and social media is also experiencing a major growth, resulting in an increased demand of Walmart’s merchandise.
With more and more people purchasing from online platform, Walmart also needs to enhance its eCommerce website to provide a seamless shopping experience to its customers. The acquisition of Jet in 2019 gave Walmart a competitive advantage as it helped the company to strengthen its innovation game. Furthermore, the AI system of Walmart makes grocery substitution quite unique for its customers as it can easily predict consumer behavior, preferences and needs.
In order to reduce carbon emission and mitigate climate change, organizations and companies are taking steps by making pacts or signing agreements such as Paris Agreement to reduce their carbon footprint. As Walmart is committed to sustainability, it is planning to achieve net zero emission by 2030 and achieve 100% renewable energy by 2035.
The PESTLE analysis for Walmart is presented below:

Political	Economical
1. United States-China trade war to impact retail 2. PR strategy on sensitive socio-political issues and impact on retail business	1. Increase in market share of major grocery store chains in flat growth market 2. Major economic shifts globally to bring in opportunities for retail
Social	Technological
1. Social media and data empowering consumers 2. Increasing urbanization trend in the United States 3. Shifting demographics in United States	1. Technology increasing “convenience” of online shopping 2. Investing and Incorporating AI and digitalized features in the business model
Legal	Environmental
1. Lawsuit filed by Crocs over claims of copyright infringement 2. Antitrust case filed in the Indian court against the American retail giants	1. Walmart’s initiatives to attain sustainable growth

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Detailed Pestle Analysis of Walmart

Political

1. United States-China trade war to impact retail: United States-China trade conflict has continued in the Biden administration as of 2022. Previously, the Trump administration had announced a tariff of $50 billion on Chinese exports in March 2018. It has further planned to increase it to $100 billion. The taxation is applicable on imports which ranges from shoes and clothing to consumer electronics. The companies like Yue Yuen Industrial Holdings and Li & Fung exports around $450 billions of Chinese goods to America every year. Majority of the retailers adopted new strategies to mitigate the impact of tariffs; however it is likely that the burden of this war will befall on the consumers as they would have to bear most of those costs. Retail giants such as Walmart had to either alter their financial outlooks, remodel their supply chain, or raise the costs of their merchandise for customers in order to mitigate the effect of trade war on their financial condition.

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Economic

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Social

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Technological

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Legal

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Environmental

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This report contains the table contents only. In case you need the complete report please purchase using the buy options displayed.

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SWOT & PESTLE (combined)
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On purchase the Walmart SWOT and PESTLE Analysis PDF report will reach you within minutes. At rare times, a slight delay not exceeding 4 hours might be caused.

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Walmart SWOT and PESTLE Analysis

COMPANY PROFILE -Walmart

Business Sector :Retail, E-Commerce

Operating Geography :United States, North America, Global

About Walmart :

Walmart Revenue :

Competitive Analysis of Walmart

Detailed SWOT Analysis of Walmart

Strength

Weakness

Opportunity

Threat

Detailed Pestle Analysis of Walmart

Political

Economic

Social

Technological

Legal

Environmental

TABLE OF CONTENTS

DELIVERY AND FORMAT

WHY CHOOSE US?

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