Walmart Case Study

Identify the general environment factors affecting Wal-Mart:

a. Demographic

The old populations of America are increasing gradually. According to the Census Bureau of U.S.A, the population of citizen who aged 65 and above is 35 million in year 2000, and it will grow to 86.7 million by year 2050. Apart from that, 12% of the population in U.S in 2000 was aged 65 and above. By 2050,the population who aged 65 and above will rise to 20.7%. Wal-Mart has to sell the things that relevant to the major age level of the population in Americans and U.S.

b. Economic

c. Political/ Legal

Wal-Mart has many political and legal issues which related to trade, health care, the environment, discrimination, worker pay and general anti-corporate sentiment. Besides that, Wal-Mart also breaking antitrust laws by using its ‘power to micromanage the market’. Furthermore, it is alleged to have ‘engage in a pattern and practice of discriminating against women in promotions, pay, training and job assignment. This will break down the reputation of Wal-Mart and hence its sell will decrease.

d. Socialculture

e. Technology

The development of RFID will bring lots of advantages to Wal-Mart. For example, it enable retailers to track inventory locations, store shelving status, packages en-route and from suppliers warehouses, shelves and even shoplifting. RFID also as ubiquitous as bar code and it also can hold much more information and can fit into different shapes and sizes. In addition, the growth of Electronic-commerce and increasing pervasiveness of broadband access in developed countries increase the sell of Wal-Mart.

f. Global

Globalization decreases the trade barrier over the world. In addition, bilateral and multilateral free trade agreements are continuing to shape market. This situation makes Wal-Mart to expand faster over the world.

g. Physical environment

Wal-Mart launched its global environment sustainability in 2004 with several goals which are sell 100 million compact...