Without a doubt, Walmart is one of the most popular online shopping outlets in the world. Political considerations mainly influence Walmart in terms of government policy, including the legal climate. For example, at the federal level, pay laws have been established that stipulate that workers should be paid a specific minimum wage. Walmart has set its salaries to be within the range of policy standards to comply with this policy. Notably, Walmart is subject to various laws and regulations, including tax reform, labor laws, and product protection regulations. In the industry of operation, several barriers can be deciphered and include the cultural and legal barriers. In the regions where Walmart has ventured such as China because many corporations have ventured into the market, many legal and cultural regulations have been added. Importantly, it can be argued that Walmart is more concerned with speed of expansion rather than being knowledgeable of cultural difference. Regarding the legal perspective, more regulations, especially the tax policies, have been implemented an aspect that has posed a major barrier to other corporations apart from Walmart.
Walmart just like other corporations in the global market experience a variety of limitations. For instance, Walmart inventory network is overburdened with the responsibility of handling data that originate from the billions of products available. As a result, the company must invest in extremely sophisticated systems to process the data. At the same time, the system must continuously be monitored and maintained to meet intended requirement. Importantly, because of the high rate of competition Walmart must exercise a limitation on its stock.
Chuang, Ming-Ling, James J. Donegan, Michele W. Ganon, and Kan Wei. “Walmart and Carrefour experiences in China: resolving the structural paradox.” Cross Cultural Management: An International Journal 18, no. 4 (2011): 443-463.
Parthasarathy, Srikant. “Business Strategy.” Financial Management (2010): 32-33.
Terpstra, Vern, James Foley, and Ravi Sarathy. International marketing. Naper Press, 2012.