Walmart-Report-Team-Pesdfgrplessa (2).pdf

sdfg r drsaga s

1. PESTEL Analysis
Course Details
Code :INB372
Section :12
Faculty :MD SHAH NEWAZ (SAW)
Walmart's entry
into Bangladesh
Student names
Sahik Mueeb Ahsan
Nabila kazol Preity
Madhumoti Rashid Chowdhury
Ehatasham
Askandar Hyder Khan
2411210630
2212541030
2222458030
2222940630
2231689630
ID

2. Executive Summary
The PESTEL analysis shows the chances and problems Walmart might face when it comes to joining
the Bangladeshi market. Politically, the unstable climate, inefficient bureaucracy, and corruption are
problems. However, incentives for foreign investment can help bring the two sides together
strategically. Walmart can benefit economically from low labor costs and a growing GDP. However,
the limited purchasing power and tariff policies can alter their pricing strategy. If they want to excel
in a market where informal retail is common, they need identify and adapt the local tastes and
needs, like halal goods and culturally specific needs. In Bangladesh the technological infrastructure
is still not fully developed. However, the rise of e-commerce gives Walmart a chance to come up
with new ways to run its stores. Walmart is in line with global and local environmental standards
when it comes to sustainability practices like properly managing trash and using renewable energy.
Legally, Walmart's promise to conduct business in an honest way will convince customers and other
important people of its responsible approach to entering new markets.
Walmart should focus on making its products fit the needs of local customers and creating a hybrid
retail model that combines real stores with online shopping. Walmart’s effort to grow their business
slowly can be started by adding smaller stores to see how people react. This slow way not only
helps Walmart understand how the market works, but it also shows how well the company plans
and sees the future. Walmart can make sure its entry into one of South Asia's developing economies
goes well and lasts a long time by using what it knows about other markets to solve problems that
only that market has.

3. Since 1945, a man named Sam Walton established a business with one focus: selling products at
low prices. Today, this company not only serves its birth nation, the United States, but also caters
to the needs of citizens in 24 other countries worldwide.
Over 10,500 stores and clubs around the world make up Walmart's large international presence. Because Walmart
has stores all over the world, it can take advantage of economies of scale and offer a wide range of goods at low
prices.
The local Walmart puts a lot of emphasis on helping and getting involved in the community. Stores and clubs in the
U.S. give cash grants of $250 to $5,000 to communities that need them every year.
Introduction
World

4. Global & Local Operations
1994
2009
2005
2011
1996
United State
Canada
Supercentres Discount Store Pharmacy
Walmart runs more than 400 shops, such as discount stores,
Pharmacy and Supercenters.
Walmart is the biggest store in
the United States. It has
supercenters, discount shops,
and warehouses for Sam's
Club.
India
Operates through Flipkart Wholesale and partnerships with local suppliers.
Chile
Walmart operates as a hypermarkets and supermarkets under
the brand Lider.
México y CentroaméricaCentral America
Walmart de México y Centroamérica is in charge of operations in Central America. It has shops like Walmart, Maxi Bodega, Despensa Familiar, and Paiz.
Africa
Walmart got into the African market by buying a majority stake in Massmart Holdings, which runs stores with names like Game, Makro, and Builder's Warehouse.
Powered By
China
Walmart has hypermarkets and membership-only stores under Sam's Club.

5. Political
Walmart has to
think about the
effect when a
government
change because
this could affect
how the business
runs.
Environmental
Walmart's has to
consider the
economic
conditions such
as influation,
costs, and
consumer buying
power for a
proper offering to
consumers.
Social
To get into a
market, you need
to find out what
people want, like
halal goods and
cheap
necessities.
Technological
Infrastructurial
development is a
key factor to
perform
Walmart's
business activities
efficiently.
Economic
Environmental
awareness is
growing, so
putting an
emphasis on
sustainability
through waste
control and
eco-friendly
sourcing makes
sense.
Legal
It is very
important to
follow laws like
the Consumer
Rights Protection
Act to keep your
business and
image safe.
P E S T E L
Analysis

6. There are more than 10,500 Walmart shops
in 24 countries, making it the biggest
American multinational store chain. In
countries like the U.S., Canada, the U.K., and
China, it has done well, but Japan, Germany,
and South Korea have given it trouble.
Walmart's success is due to the fact that it
has a lot of stores and sells cheap goods.
Introduction
Political Section Political Barriers Blocking
Walmart's Entry into
Bangladesh
10,585
24
Stores
countries
robust supply
chain and
efficient logistics
Walmart does business in many countries, so trade agreements, tariffs, and
rules about importing and exporting affect its supply chain. Tariffs and trade
agreements can have a big effect on Walmart's supply chain costs and the
prices of its products. For instance, disagreements over trade between the
U.S. and its main trading partners can raise the costs of imported goods.
It is very important that the countries where Walmart does business are
politically stable. Unstable political situations can make it hard for Walmart
to do business. Walmart relies on the political security of the countries where
it does business to keep its doors open.
Walmart can directly gain from government programs, subsidies, or rewards
that assist stores or encourage investments from other countries.
Walmart works with governments to change rules that affect the way it does
business. This includes working for rules that are good for the company and
taking part in community projects that improve its image.
Walmart funds for lobbying in order to grow its businesses in different
countries. For instance, the company spent $25 million on marketing to grow
its business in the Indian market.
Chaotic Political System: Many
protests, strikes (called
hartals), and partisan fights happen
in Bangladesh
because of the unstable
government.
Interim Government: Interim
governments are often
for short term period. In these unstabe
governments foreign investment are
often not very supporting.
Partisan Politics: Bangladesh's
government is under a lot of stress.
It's hard for Walmart to do well in this
uncertain environment.
Political Stability
Retail Market Regulations:
Well-defined policies for
foreign-owned retail companies is
needed to operate freely in
Bangladesh
FDI Restrictions in Retail: Historically,
Bangladesh has
been cautious about opening its
retail sector to foreign
companies, aiming to protect local
businesses from
international competition.
Regulatory Framework
Current Scenario

7. Political Section - Barriers Blocking Walmart's Entry
Bureaucratic Hurdles
Ease of Doing Business: Bangladesh holds a
low rank on the global index because of its
complicated and inefficient government. This is
why foreign companies face challenges here.
Corruption: Different levels of corruption can make
business conditions unpredictable and raise the costs.
There are 180 countries in the Corruption Perceptions Index
(CPI), and Bangladesh is in the 149th position in 2023.
Bangladesh is still the eighth-worst country in South Asia.
Complex customs clearance processes: Bangladeshi
customs are criticized for holding goods at ports which
causes delays. These delays raise supply chain costs.
Walmart will face significant challenges in continuing its
'Everyday Low Prices' model and ensuring operational
efficiency.
Government Prioritization of Local Retailers: The
Bangladeshi government might put local stores
first by not wanting to let in big foreign
companies that could take over the market and
hurt smaller competitors in the region.
Priority to Small and Medium-Sized Businesses (SMEs):
Motivating the local businesses by offering policies that
give small businesses more tax breaks, subsidies, and
low-interest loans.
Protection of Local Businesses
Trade and Tariff Policies
Import Dependency: Walmart depends on an
effective global supply chain to sustain low
prices. Bangladesh's import regulations, involving
tariffs and restrictions, could raise costs for
Walmart's products.
Bilateral Trade Agreements: Bangladesh’s trade agreements
with countries like India and China could help Walmart
leverage low-cost imports for its regional supply chain.
Open General License (OGL): The OGL policy allows the import
of goods without specific restrictions, easing inventory
management for a global retailer like Walmart.
Import Tariffs: To protect domestic manufacturers and
retailers from international competition higher tariffs is
applied to the products. This increases the expense for
importing products from aborad.
Labor Laws
Low Labor Costs: Bangladesh has a large pool of
cheap workers compared to developed
countries. This will help Walmart achieve its goal
to keep prices low.
Flexible Working Hours: The law requires standard work hours
but allows for longer shifts in some situations, which could
benefit Walmart's retail operations.
Labor Compliance Issues: There are labor laws that are only
sometimes followed. Walmart will lose its reputation for not
following labor laws and not provide better working
conditions, especially in its supply chains.
Worker Strikes: In the industrial sector strikes are more
noticeable.
Negative Global Perception: Walmart could face scrutiny
worldwide because Bangladesh has a history of labor
problems in the clothing industry.

8. Walmart is a giant global retail company that operates in its home country USA and many other countries. Its operations are significantly
influenced by environmental factors.
Environmental Section Walmart’s perspective
Environmental Policy
Consumer Awareness
Walmart in Canada piloted the use of hydrogen-powered forklifts in distribution
centers and installed a fleet of electric delivery vans with zero emissions.
Their subsidiary Massmart in Africa made their operations more energy-efficient by adding energy management systems
Based on EU’s regulations, they adopted energy efficient refrigeration systems &
introduced electric delivery vehicles to reduce emissions.
Walmart assesses and collaborates with their suppliers to improve their environmental performance via their Sustainability Index
Other goals
They promote sustainable agriculture
for sourcing palm oil, beef, soy, pulp,
paper and timber 100% deforestation
free by 2025.
Walmart’s vision is to transform food
& product supply chain to be
regenerative and use natural
resources sustainably.
Provides detailed information
about their sustainability goals
through annual Environmental,
Social & Governance (ESG)
reports
In the USA, Walmart opened a special department for eco-friendly products like
energy-efficient appliances, organic goods, and biodegradable cleaning
supplies in response to consumer awareness.
To meet local concerns regarding deforestation in the Amazon rainforest, they
procured beef and soy products free of deforestation in Brazil.
In China, they launched a digital supply chain transparency to allow Chinese
consumers to trace the origin of products and ensure food safety.

9. Walmart is a giant global retail company that operates in its home country USA and many other countries. Its operations are
significantly influenced by environmental factors.
In the USA they installed solar panels at more than 400
locations.
They invested in wind farms like Thunder Ranch Wind Farm
in Oklahoma.
They also have solar farms & wind energy projects in
Mexico supplying over 50% of energy from renewable
sources.
Worked with Chinese suppliers to cut down on carbon
pollution and help them reach their goal of Project
Gigaton, which is to get rid of 1 billion metric tons of
greenhouse gases by 2030.
Climate change Other goals
0% emissions from any of their activities around the world by 2040.
100% renewable energy to power all their buildings by 2035
50 million acres of land and 1 million square miles of ocean will be fixed by 2030.
In their clubs, stores, data centers, and distribution centers, they want to move to electric equipment 0%
2024
emissions by
50million
acres of land
1million
miles of ocean
100% renewable
by
2024
•Asda, its subsidiary, has replaced single-use plastic bags with
reusable alternatives.
•In India, they partnered with local NGOs to set up waste
collection & recycling systems for plastic packaging. They also
encourage consumers to bring their own bags.
•As of 2020, they kept 81% of trash from going to landfills or
being burned around the world.
•They want their businesses in key markets to have no
waste
•By 2025, they want all brand packaging to be
recyclable. According to supplier sources, they reached
59% by the end of 2020.
•They encourage their customers to recycle by providing
recycling bins at stores.
•They also want to cut their use of raw plastic by 15%.
Waste Management Other goals
Environmental Section Walmart’s perspective

10. Environmental Section
Consumer Awareness
Environmental policy
Like all other countries, govt. of Bangladesh also imposed many environmental policies to preserve the environment.
Environment Conservation Act 1995: The requirement for ‘Environmental Clearence Certificate (ECC)’ for every business and
industries to start their operations.
The Natural Environmental Policy of 1992: Bangladesh’s first environmental policy to protect natural resources, control pollution and
promote sustainable development.
National Environment Policy 2018 updates the 1992 policy: Emphasizes on climate adaptation, renewable energy, waste
management and natural disaster preparedness aiming to reduce environmental pollution and protect biodiversity. This policy also
encourages companies to use eco-friendly technologies and promote green business practices.
Bangladesh Climate Change Strategy and Action Plan (BCCSAP): Encourages businesses energy efficiency, sustainable land & water
use. It also promotes investment in renewable energy
Bangladeshi consumers, particularly the younger ones, are expecting firms to embrace sustainable
practices and are growing more ecologically conscious. International buyers and consumers are
putting pressure on many businesses, especially those in the import-export industry
Many even demand specific sustainable sourcing certifications.
To improve Walmart's reputation with both domestic and foreign customers, businesses are also
getting more involved in CSR initiatives and environmental campaigns.

11. Environmental Section
Waste Management
Manufacturing industries, textile industries or leather industries all generate significant
amounts of waste. Poor waste management leads to severe environmental
degradation. To manage waste, companies in Bangladesh are attempting to
implement waste minimization strategies and invest in recycling facilities to handle
waste effectively.
To keep the environment safe, they follow the right steps when getting rid of chemical
or toxic waste, which are based on rules set by environmental policy. Companies use
eco-friendly materials for products to have less of an effect on the earth. Some
busineses in Bangladesh have been working on E-waste management, which is in high
demand in many developed countries.
Climate change and it’s impact on business
Climate change poses a serious threat to Bangladesh. Due to its geographic location,
it is susceptible to a variety of natural calamities, including earthquakes, cyclones,
floods, and river erosion. These changes affect businesses to run their operations
smoothly.
To withstand these extreme weather conditions, companies in Bangladesh
establishes contingency plans for any kind of disasters. To maintain sustainability,
many businesses are switching to renewable energy sources and investing in
energy-efficient technologies to lower energy expenses and greenhouse gas
emissions.
Earthquakes
Cyclones
Floods
River erosion

12. Social Section Efficient Supply Chain Management
Walmart's supply chain efficiency is a critical factor in its economic
success. The company uses advanced technology (like real-time data
analytics and automation) to track inventory and manage logistics.
Walmart’s centralized distribution system allows it to keep costs low, which
is passed on to customers in the form of lower prices.
Walmart's Plan for
Success in
Bangladesh handling 
Consumer
Challenges and
Trends
Efficient Supply Chain Management
Approximately 85-90% of retail is still dominated by unorganized,
small-scale shops and wet markets.
E-Commerce
The digital retail segment has seen exponential growth, especially after
the COVID-19 pandemic. Platforms like Daraz, Chaldal, and Evaly (before
its controversies) have transformed shopping habits.
Modern Retail
Organized retail, including supermarkets, department stores, and e-commerce platforms, is growing at a CAGR of 15-20%. Major players include Shwapno, Agora, and Meena Bazar.

13. Social Section Walmart's social preferences
Walmart tailors its product offerings to suit the local tastes and
preferences of consumers in each country. For instance, in some
countries, Walmart may offer local food products, clothing styles,
and culturally relevant goods that reflect the tastes of the region.
Walmart's social preferences
Walmart adapts its advertising and promotional campaigns to align with cultural values. This includes language differences, regional holidays, and specific cultural practices that affect consumer behavior.
Walmart's Marketing & Advertising
In many markets, Walmart must be aware of public health issues and may adjust its practices to ensure the safety of its customers and employees. This includes adapting to local regulations regarding food safety, health standards, and worker protection.
Health and Safety

14. Social Section Walmart's social preferences
Walmart must navigate labor laws and social expectations regarding
employment. This includes understanding the legal requirements for wages,
working hours, unionization, and employee benefits. Walmart has faced criticism
in some markets over labor practices, including wages and working conditions,
so it must consider how to engage with these issues in a socially responsible
way.
Walmart focuses on promoting diversity within its workforce. It strives to be
inclusive of different genders, races, and backgrounds, which is important in
the social context of many countries.
Employment Practices
Diversity & Inclusion

15. Technology Section Basic Technological factors
Retailing is a traditional business in Bangladesh, with small grocery stores in rural
areas, as well as small grocery shops in shop-lots and corner stores in
neighborhoods in semi-urban and metropolitan areas, occupying the retail
sector However, the retailing industry in Bangladesh has changed dramatically
during the last decade. Supermarket growth, rapid e-commerce and e-tailing
adoption, and multichannel retailing.
The leading retail companies are implementing newer formats with integrated distribution chains.
A number of large retail companies today use at least one software application to manage their organizational activities.
There are two technology options for selling goods via mobile devices: a) mobile apps and b) mobile sites.
While some of them have implemented globally recognised retail solutions, others have chosen locally developed ones. Most of these companies use software at the point of sale and to manage their finance and accounting.
Auto-generated promotional ads: Some retail shops are using social media to automatically generate promotional ads.
Situation

16. Technology Section Technological advancement in retail industry of Bangladesh
E-commerce Platforms
Retailers are establishing
online stores to reach a
broader audience. For
instance, Meena Bazar has
developed its Meena Click
e-commerce platform, and
Shwapno has launched an
online shopping beta edition.
Point of Sale (POS) Systems
Modern POS systems
streamline transactions,
manage inventory, and gather
sales data. Companies like
Retail Technologies Limited
offer comprehensive barcode
solutions and POS systems to
support these needs.
Mobile Applications
Retailers are deploying
mobile apps to facilitate
online shopping and
enhance customer
engagement.
Chaldal.com, for example,
provides mobile apps for
Android and iOS users,
enabling convenient
grocery shopping.
Supply Chain Digitization
Technologies such as RFID
and IoT are being utilized to
optimize supply chain
management, ensuring
efficient inventory tracking
and reducing losses.
Companies like PriyoShop
are digitizing supply chains
for retailers, enhancing
efficiency and profitability.
Data Analytics
Retailers are leveraging
data analytics to
understand consumer
behavior, personalize
marketing strategies, and
make informed business
decisions. This approach
helps in tailoring products
and services to meet
market demands.
Artificial Intelligence (AI)
and Machine Learning
AI and machine learning are
being applied to predict
consumer trends, manage
inventory, and enhance
customer service through
chatbots and personalized
recommendations. These
technologies contribute to a
more efficient and
customer-centric retail
environment

17. Economic Section
Interest Rate
10%
Inflation Rate
9.92%
GDP
$437.4B
Growth
Rate
6%
2640000 people
Unemployment
rate
5.06%
of the polulation
live in urban areas.
38%
Economic aspects considered by walmart
Low-Cost Sourcing
Walmart would prioritize sourcing products locally to reduce transportation and import costs. Where possible, it
may establish relationships with local suppliers to further cut costs.
Bulk Purchases
By leveraging its massive purchasing power, Walmart can negotiate lower prices with suppliers, thus reducing
per-unit costs.

18. Walmart’s centralized
distribution system
Walmart's supply chain
efficiency is a critical factor
in its economic success.
The company uses
advanced technology (like
real-time data analytics
and automation) to track
inventory and manage
logistics. Walmart’s
centralized distribution
system allows it to keep
costs low, which is passed
on to customers in the form
of lower prices.
Smaller Packaging & Affordable Options
In lower-income markets, consumers may prefer
smaller packaging or smaller quantities at lower price
points, so Walmart may offer products in these
formats to meet local demand.
Localized Distribution Centers
Walmart would likely invest in regional distribution
centers to streamline the supply chain, reduce
delivery times, and lower transportation costs.
Economic Section Efficient Supply Chain Management
Price Skimming and Discounts
Walmart may offer significant discounts or periodic
sales to attract low-income shoppers.
Flexible Payment Options
In markets where credit card use is low, Walmart could
offer installment payment plans or partner with local
mobile payment systems to facilitate purchases.

19. Legal Section Minimum Wage and Yearly Increment
Minimum
Wage
8000BDT/
month
Yearly Increment
5%
The 2022 Amendments require businesses to
implement a mandatory yearly increment of at least
5% of basic wages, without considering preconditions
such as KPIs or profitability. For Walmart, this can
increase operational costs, especially during times of
economic instability.
After going up by 76.7% from its 2010 level of 3,000 BDT, the minimum wage was raised to
5,300 BDT per month. From 2013 to now, the minimum wage has gone up by 51%, to 8,000
BDT per month. Even so, this will stay the same until an amendment is made in 2022 that
requires this amount to go up by 5%.
5,300 BDT2013
3,000 BDT2010
8,000 BDT2018
8,000 BDT2022

20. Legal Section Bangladesh Consumer Rights Protection Act, 2009
Walmart must ensure accurate
marketing and labeling to avoid legal
fines or damage to its reputation.
Transparency and Fair Advertising
Section 37 Section 40
Prohibition on misleading advertising or deceptive practices
Section 41 Section 42 Section 51
Walmart must enforce stringent quality checks, leveraging its global quality control systems with localized adaptations.
Product Safety & Quality Standards
Prohibition on selling expired or adulterated products
Walmart’s experience in labeling compliance must be localized for Bangladeshi standards.
Product Labeling & Information
Accurate labeling of product origin, ingredients, and safety
Walmart must adapt its recall and safety procedures to local standards to prevent violations
Prohibition of Unsafe or Harmful Products
Ban on selling harmful or unsafe products
Fair pricing and prohibition of price manipulation.
Walmart’s “Everyday Low Price” strategy aligns with this, but pricing strategies must meet regulatory and consumer expectations.
Pricing Regulations

21. Conventional stores and street vendors
Supply chain infrastructure of Bangladesh
Bangladesh’s retail landscape is dominated by traditional conventional
stores and which gives personalized shopping experience to the consumers
at a lower price. This traditional way of shopping makes it hard for Walmarts
large store structure. On the other hand the van shoppers directly bring the
goods to the consumers. This mobility and convenience is preferred by the
consumers which diminishes the need for Walmarts fixed store supershop.
The supply chain infrastructure is underdeveloped in Bangladesh. Insufficient road, warehouse facilities and
inefficiency in the logistics department hurdles the entry of large scale retail companies like Walmart.
Lower standard of living and limited purchasing power
the lower standard of living and limited purchasing power of average Bangladeshi consumers conflict with
Walmart's target demographic. Although Walmart is known for affordability, its pricing might not align with the
spending capacity of Bangladeshi consumers.
Walmart will face significant challenges to enter Bangladeshi market due to structural and social economic factors
All of these together creates a complex environment for Walmart to enter Bangladesh market.
Market Entry Strategy

22. Referencing
Legal Part
Economic & Social Part
Ministry of Law.(2014, January 20). An Act to make provisions for the protection of the rights of the consumers,
prevention of anti-consumer right practices and for matters connected therewith [Press release].
https://dncrp.portal.gov.bd/sites/default/files/files/dncrp.portal.gov.bd/page/6654dd6a_537a_4838_9017_712d
b7c60cd9/consumer%20act-2009.pdf
Suhan, K.(2023, March 1). “Bangladesh Labour Rules: 2022 Amendments”. Accord Chambers.
https://accordchambers.com/insights/bangladesh-labour-rules-2022-amendments/
Jim, M. (2024, October 11). “Walmart PESTLE Analysis 2024: Exploring the External Influences on the Retail Giant”.
PESTLEanalysis. https://pestleanalysis.com/walmart-pestle-analysis/
Technology Part
Meena Bazar. (n.d.). Meena Bazar online grocery shopping. Retrieved November 28, 2024, from
https://meenabazaronline.com/
Shawapno. (n.d.). Shawapno online grocery. Retrieved November 28, 2024, from https://www.shwapno.com/
Chaldal. (n.d.). Chaldal: Online grocery shopping and delivery. Retrieved November 28, 2024, from
https://chaldal.com/
Retail Technologies Limited. (n.d.). Retail Technologies Limited. Retrieved November 28, 2024, from https://rtbd.com/
The Strategy Story. (n.d.). Walmart’s use of technology in retail. Retrieved November 28, 2024, from
https://strategy-story.com

23. Conclusion
Traditional shops and street vendors in Bangladesh makes it hard for Walmart's large-format store
structure to work. People from the lower classes haven't accepted this way of shopping yet. The
supply chain infrastructure of Bangladesh is also not well developed, with a bad transportation
system, and inefficient technological usage that makes it harder to run large-scale retail
businesses. Even though Walmart focuses on low prices, it is harder for the company to reach its
target audience due to things like a lower standard of living and less buying power. A lot of these
structural and social problems make it hard for Walmart to get into the market.
Walmart should tailor its approach to each market by opening smaller shops that meet the needs
of local customers for affordability and ease of use. Improving relationships with local
transportation and suppliers can help fix inefficient parts of the supply chain. Walmart can deal
with the economic problems by focusing on smaller, cheaper packaging for products and different
payment methods so that customers can spend what they can afford. Walmart could also better
fit into the traditional retail ecosystem by putting money into localized digital retail sites. This would
help the company rely less on big-format stores.