How to use a PESTEL analysis to assess local market conditions


In this case you will learn:

  1. How to use a PESTEL analysis to assess local market conditions
  2. Identify sustainable competitive advantage using Porter’s Value Chain
  3. Assess mode of entry / market entry strategies for global markets
Response Instructions

Please submit a video (6 min max) of you and your partner presenting your response to the following.

Remember to identify what are the key issue(s) in this case or explain what this case is trying to address at the beginning of your Case Response.

1. Evaluate Walmart’s globalization strategy over the last two decades using a PESTEL Analysis. Where did the retailer struggle? Where did it do well? Can market characteristics explain the differences in Walmart’s performance?

2. What is Walmart’s competitive advantage? How do they provide value to their customers? Back up your conclusions by using Porter’s value chain.

3. In 2013, Walmart decided to enter the Indian market in a joint-venture with Bharti Enterprises. Considering your PESTEL analysis of Walmart’s global expansion up to that point, do you think it was a good idea to go to India? Why / Why not? What is your opinion of a joint-venture as the mode of entry?

4. In general, what do you think is the best way to enter a new market: acquisition, joint-venture, or greenfield investment? What are the market characteristics that affect the decision? What are the firm characteristics that affect this decision? What industry characteristics affect this decision?

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