Wal-Mart's Macro and Industry Dynamics

Here is a quick look at the environment of the U.S. stores division of the company.

Macro environment factors

Political - The company is continuously in the media, usually in a negative light. This negativity has resulted in political pressure in communities Wal-Mart is trying to expand into. Although the recent scandal in Mexico is not related to the U.S. stores division, it's stories like these that generate negative connotations with the company. The end result is usually the company has to negotiate in some areas, in order to enter that location. Here's an article in Forbes about the subject.

 Socioeconomic - Varies from place to place, but is probably most adverse for the company in California. One socioeconomic factor that has been ongoing for the last ten years is equal rights in promotions and pay. The company is facing several lawsuits alleging discrimination based on sex. (more here)

Economic - According to recent reports, the economy is starting to improve, and this is helping Wal-Mart. Its stock is hovering around a 12 year high, and its first quarter earnings was around 10% more than last year's. (more)

Technological - Retail sales over the internet continue to rise annually. Companies are striving to get a piece of the action with their websites, social media use, and emailed advertisements. A new wrinkle in Wal-Mart's website is the addition of a "Pay with Cash"  feature, which allows users to place an order and then pay for it at a local store. This feature is being used to to alleviate fears of online shopping centered around identity theft from online payments.

Environmental - Wal-Mart has a whole initiative centered on helping the environment. Personally, I've seen the addition of efficient lighting, improved chemical cleanup methods, increased emphasis on recycling, and attempts at waste reduction.

Legal Factors - Take your pick from any of the previously listed factors. The company has probably faced a lawsuit regarding one of them in the last 10 years.Here's an environmental one from California.

Industry Environment
 The company is in the retail industry. The company sells groceries, electronics, apparel, and automotive parts among other things.

Strategic Group
Wal-Mart's closest rivals include Target, Dollar General, Family Dollar, etc.