Environmental Factors Paper
February 24, 2012
Environmental Factors Paper
Wal-Mart is one of the world’s largest retail stores across the nation. They are the leaders in employment opportunity, sustainability, and corporate philanthropy (Wal-Mart, 2012). Wal-Mart has 10,020 stores in more than 28 countries. They employ 2.2 million people and serve 176 million customers per year (Wal-Mart, 2012). This paper will look at Wal-Mart and analyze environmental factors that have effects ...view middle of the document...
China benefits from this business relationship as well because of the high-demands for the products it has opened many jobs in that country. Wal-mart increases the efficiency of the business and lowers it cost by using trade. Wal-Mart does have to be cautious about the barriers with trade including both non- tariffs and tariffs as well as quotas. Countries and governments can change the tariff taxes and limit the amount of imported foreign goods. If this were to happen Wal-mart could be greatly affected needing to increase cost to the customers that could result in loosing these customers and contradicting their motto of “save money, live better.”
Importance of Demographics and Physical Infrastructure
Wal-Mart uses the importance of demographics when approaching major marketing decisions. According to Armstrong & Kotler (2011) Demographics shows the information about a country’s population. It addresses age, gender, income, size, location, race, occupation, etc. Wal-Mart focuses on these elements to help pinpoint the locations that will prove to be the largest profitable for the company to build future Wal-Mart stores or distribution centers. Wal-Mart looks at different locations and decided whether or not a new store would be effective in these different areas. An affluent area would not be the best location for a new Wal-mart store because the majority of the people who shop at Wal-Mart do so to save money on everyday items. An affluent location primarily has people looking for quality rather than price and therefore, would prefer to shop at higher priced stores.
Physical Infrastructures plays a large role for Wal-Mart when the company is looking to expand internationally. Transportation networks like roadways and railroads are important to help distribute the goods. How well these infrastructures are designed and set up has an impact on the distribution of these goods and can make it to where Wal-Mart could possible not have the good delivered when they are needed.
Influence of Cultural Differences
Cultural differences influence Wal-Marts marketing decisions. Wal-Mart has stores located throughout the world, they have to make sure that each location follows not only Wal-Marts standards but also goes along with the countries beliefs. For example, in Germany they do not believe that greeters are something that provides any value and therefore do not want any at the front doors. Wal-Mart respects this and does not employ individuals to greet people at the door, nor do they have people to collect carts or bag the groceries. Germans do however feel as though their time is important; therefore, Wal-Mart ensures that each cash register has an employee at it at all times.
The Wal-Mart in China carries a larger selection of unpackaged fresh meat and fish than many of the other Wal-Mart stores around the world. This is because the...