EFAS - Barriers.15 3.5.53 Could possibly have a difficult...

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External Factors Analysis Summary (EFAS): Wal-Mart Stores, Inc. On Becoming the World’s Largest Company (Case #18) Key External Factors Weight Rating Weighted Score Comments Opportunities (O1)International Expansion and Obtaining membership in World Trade Organization .20 5 1 The increase in GDP and an increase in disposable incomes in Asian countries. Demand for westernized lifestyle. Entry into unfamiliar market segments. Easier to negotiate foreign government restrictions. (O2)An increase in the trend of shopping at Superstores .05 4.2 .21 Higher opportunity and chances of global expansion for the company. (O3)Demographics are open to new products and brands. .15 4.1 .62 Increasing customer awareness of its broad range of products. Gearing towards people of all ages, genders, cultures, etc. (O4)Intense Competition in Pricing .12 4.6 .55 Wal-Mart is the industry leader and has the ability to force competition out with its low prices . Threats (T1)International Expansion
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Unformatted text preview: Barriers .15 3.5 .53 Could possibly have a difficult time trying to eliminate competitors in other countries. (T2)Strong competition in local market. .10 4.3 .43 Other companies like Target and Costco are carrying the same type of products and can do price cutting causing flat earnings. (T3)New Retail Formats .05 3.5 .18 Could lead to lesser market share due to the increasing interest in the trend of online shopping. Changes in technology and surfacing of virtual stores like amazon.com (T4)Cultural Expansion and Marketing Issues .05 3.5 .18 Need to understand cultural belief systems and how they function as a society. For example, Muslim vs. American society. Adaptation and understanding of cultural norms and values in other countries. (T5)Slow Economic Growth Worldwide .13 3.6 .47 There are too many sellers and there may not be enough buyers because of the current inflation in the economy. Total Scores: 1.00 4.2...
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