The issue faced by companies that want to expand internationally is that they expose themselves to external forces that they are not accustomed to, forces that might limit the companies' choices as well as their growth.In order to avoid that negative aspect, Wal-Mart needs to investigate those factors by using the PESTLE analysis (also known as PESTEL).
The PESTLE categorizes those elements into six different forces, which are the political, economical, social, technological, legal, and environmental forces.* The trends of stores that focus on one special areas of expertise are now threatening Wal-Mart (such as Best Buy for example).* Political pressure and foreign laws can affect Wal-Marts operations in other countries.The importance of those strategies is that the stakeholders in the company would often view the growth of the company as a main indicator for its performance, so they judge the company by the level and consistency of its growth.In the Wal-Mart case, this has been true since the beginning; Wal-Mart has always been aggressive in its pursuit of growth as well as using the perception of amazing and fast growth to their advantage.* The company makes good use of technology, especially in inventory management.* The company has a huge lead ahead of its competition. * They face criticism for reliance on temporary and part-time workers as well as accusation in regards to violations of the child labor laws.* The constant incorporation of state of the art technology gives the company a competitive edge.* There are several potential international markets that the company can target.But the question is, what are the limits to Wal-Marts growth?The domestic retail market in the United States s overcrowded and extremely saturated, even Wal-Mart would have to seek new means of expansion, so the natural solution for them would be to seek new markets and opportunities outside the borders of the organizations' home country.