Sample Essay on PESTEL Analysis for Wal-Mart

PESTEL Analysis for Wal-Mart

Wal-Mart is a store that operates international and offers items for working families at competitive costs. It has worldwide markets and its PEST analysis is worth discussing. The ever changing technology, competition and environment compel Wal-Mart to strategically think and make fast decisions.


Wal-Mart has been exposed to law suits and political actions. For example, the company has been subjected to racial and gender discrimination lawsuit. Monetary policy, tax laws and trade policy have also played a role in determining the performance of the company. For instance, from 1976, importation surpassed exportation because of the work carried out by President Nixon and Henry Kissinger to start trade with China. Because of these, the two nations named one another as favored nations when they signed a 3 year agreement in 1979.


In this respect, the United States gas plans to moderate the rise of supercenters for purposes of leveraging on its capital assets. This will be carried out with the help of a plan that is aimed at moderating increase in sales and returns in the United States stores.

In 1979 the recession period hit and a decline was noted in 1980 with more Americans living in poverty. However, since Wal-Mart is a discount retailer, it still prospered through the recession period. The unemployment rate however followed the course taken by the economy with the levels rising and American families had less access to money. Because of this, the demand for discount goods increased and Wal-Mart cashed in on this by delivering on the demands.


Wal-Mart has always adopted fair labeling standards and as a result of this, there was brand loyalty shift. The company shifted consumer confidence from the retailers to the brands and as a result, its success soared as the lowest retailer of consumer products. Wal-Mart has without question proved to hit a resonance cord with most shoppers because it caters for their personal needs.


Wal-Mart has adapted quickly to technological changes and it has developed and adapted to changing technology. In 1975, it leased an IBM computer in order to track inventory distribution of more than 100 stores. In 1977, the company increases its capability to make orders from suppliers through its growing network. The company also relies on the use of the latest IT technologies and what is more, it has also embraced online shopping.


The company has had to deal with contamination and recycling issues though it always finds a way to solve such concerns.


Just like other companies, Wal-Mart has faced numerous legal issues some of which are complex.

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