This report aims to examine Nigeria, a country Wal-Mart stores, Inc. is looking to invest, in order to identify opportunities and threats in the proposed market and to ascertain whether or not to proceed with investment plans. This report contains an analysis of Wal-Mart stores and its identified strengths and weaknesses, as well as the risks it will face and opportunities it has in the proposed host country which have been identified through macro and micro environmental analysis the country. Based on findings from the analysis, recommendations will be made to management and the end of this report.
A qualitative approach was adopted for this report and data used were obtained from secondary sources including reports, journal articles, online sources and textbooks. Supporting tables and charts used for analysis have been included in the appendix.
This report adopted the use of SWOT analysis to audit Wal-Mart’s existing strengths and weaknesses and to investigate potential strengths and weaknesses as identified in the findings of the host analysis. SWOT analysis is a model for developing marketing plans. It assesses what an organisation can do (strengths) and cannot do (weaknesses) in addition to the organizations favourable and unfavourable conditions otherwise known as its strengths and weaknesses. SWOT analysis is based on information gathered from the organizations internal and external environment (Ferrell, et al., 1998).
PEST analysis was used to examine the macro environment of the host country. This analysis looked into the political (legal), economic, socio cultural and legal factors of a country’s macro environment. The micro environment of Nigeria was examined using Porter’s diamond of competitive advantage. This theory explains why certain companies and industries are able to perform better in some nations than others and attributes it to four basic reasons including factor endowments, demand conditions,... [continues]
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