Question

Firm: WALMART

External Analysis. Complete an external environment analysis (1-Economic, 2- Social Values, Cultural, & Demographics.) You must (1) identify TWO relevant and most-pressing trends for each segment and (2) evaluate the potential impact of those trends on the firm’s future strategy.

Answer 1

Economic

Most economies around the world are evolving and hence Walmart is under significant pressure to keep pace with these economic changes. The following are the key economic trends that is of concern to Walmart

• Major economies are becoming stable posing an opportunity for Walmart to increase footprint
• Developing countries are growing consistently, especially India. Walmart can think of entering this country
• Decreasing unemployment in US will increase the number of consumers with disposable income in hand and hence potential for Walmart to increase its customer base

Due to these economic factors, Walmart should exploit opportunities around the world. It should have additional focus on the fast-growing economies of developing countries. The growing middle class in these countries have increasing demand for goods from retail firms like Walmart.

Social/Cultural and Demographic

Key trends in these aspects:

• Increasing adoption of heath care products and healthy alternatives
• Increasing Urbanization and rapid migration to cities
• Customers are becoming more particular and choosy with demand of specific requirements

Walmart can increase its portfolio of healthy products. Walmart should also widen the variety of its products to satisfy culturally diverse preferences. The company should adjust its strategies to exploit increasing consumer demand in urban and surrounding areas of cities