Summary
Grocery stores, supermarkets, hypermarkets, department and discount stores, and local markets are all a part of Walmart’s business model. Groceries and consumables, health and wellness, technology, office supplies, entertainment, hardlines, fashion, and home categories are all available at consistently cheap costs in the company’s locations. Additionally, Walmart runs warehouse clubs, such as Sam’s Clubs. Walmart sells goods under a variety of licensed brands and private labels. The main objective of Walmart’s marketing approach is to attract consumers to its stores, where they can shop for groceries, home goods, and other items at affordable prices.
Finance is an integral part of the marketing plan since the marketing budget should be set to promote the brand while also increasing profits. Accounting for Walmart allows for tracking expenditures and incomes. The economy affects the marketing plan because one element of the marketing planning is the state of the economy and the prices that the customers would be able to afford.
Political Environment
Manufacturers and suppliers that sell goods to Walmart may be impacted by the policies of the local governments. Any disruption could hinder operations if Walmart does not operate in politically stable areas. Governments have a reputation for moving swiftly to take action when businesses violate rules (Rowland, 2019). Governments can also enact legislation that jeopardizes the profits of companies. One example is the bill that would have increased the minimum pay for workers to $15 per hour had an impact on both Walmart and its eCommerce rival, Amazon (Rowland, 2019). Although it benefits employees, Walmart’s profit line will decrease as a result of the minimum wage increase.
Ethical
Walmart aims to use its ethical standards as a strategic advantage. Integrity fosters trust in our company and upholding the highest standards of morality and compliance aids in the development and upkeep of an honest workplace environment (Walmart, 2022). For a company to succeed and grow in a sustainable way, ethics and compliance are crucial. Businesses that uphold high standards, base their decisions on guiding principles, promptly address issues, and conduct themselves transparently not only reduce risk but also improve business operations and build customer confidence.
Socio-Cultural
Despite being well-known throughout the world, Walmart is not always a favorite location to buy. For instance, Walmart lost almost $1 billion due to Germany’s lack of interest(Global Data, 2022). Walmart lost a lot of money by failing to adapt its marketing to the German market. Only global brands that are knowledgeable on how to provide clients with specific products will be successful. For instance, serving wholesome food to people who are health aware For this market, Walmart now carries organic and nutritious foods. Thus, adapting to the local environments and the expectations of the buyers in a particular state is essential for businesses such as Walmart, which aim to expand their operations to a global market.
Technology
Walmart has embraced automation and robotics to increase productivity in the background. The technology can aid with order fulfillment, production efficiency, and retail cleanliness. Adopting automation is a type of digital transformation that uses automated technologies to develop corporate processes that are more effective. Automation is a move that the company is expected to make with a brand as well-known as Walmart. Employees can concentrate solely on selling goods by delegating mundane work to robots. Furthermore, the feature of internet shipping reaches more people. The majority of people use tablets, smartphones, or laptops. Additionally, it means that it can put up paid online advertisements to send search engine users to the website.
Economic
Walmart is impacted by the state of the economy as any other business. This company is renowned for its inexpensive merchandise. However, if the economy falters, it might be necessary to increase production costs, and Walmart will have to boost product prices. This will have a direct impact on the buyers, who will have to pay more for their goods. Moreover, Walmart will not be able to compete with other brands if its costs are not increased. Additionally, when the economy is terrible, buyers only purchase necessities; hence, a lot of Walmart’s merchandise will remain on the shelves indefinitely.
Environmental
Walmart faces criticism for inappropriately disposing of dangerous fertilizers and pesticides that got into sewage lines. After being discovered, the corporation launched Project Gigaton, the goal of which is to stop a gigaton of emissions during the following ten years (Walmart, 2022). Similar eco-friendly claims have been made by other businesses, including Target.
Legal
Walmart is required to abide by international rules and regulations. The most prevalent of these laws are those pertaining to employment, data protection, labor, and health and safety. Walmart has failed in California despite being required to follow these regulations. 1000 present and former employees who claimed that Walmart did not provide seating accommodations would receive $65 million from the corporation in a settlement (Rowland, 2019). Many businesses the size of Walmart may agree to settle out of court rather than endure a protracted trial.
References
Global Data. (2022). Walmart.
Walmart. (2022). Ethical & compliance.