...other retailers like Kmart and Target. Some other threats are economic conditions that a Wal-Mart might face by opening up in a certain town, state, or country. If a location is opened and a particular town and then there is an economic problem in that town that particular store is greatly effected. A Wal-Mart location could also be effected by political problems in their international locations. They could be effectedby the views other countries have of America. As an example if the people of London decide they are not happy with our foreign policies they may not want to shop at an American owned store in their country. Price competition is another threat to Wal-Mart. As many companies start to outsource the production of their products to countries with cheap labor, these products can be offered at lower prices. This starts a price war between retailers. And as an effect profit margins can become very small in order to remain competative. The biggest threats to wal-mart would be competition from other rivals being number one in the retail industry creates a target by all rivals towards them, which tends for them to loose focus on the overall goal and concentrate on its rivals. The threats by state's to enact laws that prevent wal-mart from building new stores because of perceived threats to small businesses, for example Virginia enacted a law that prohibits wal-mart from constructing new stores. The threat by employees and support by states to help employees join unions for example the local legislator in Maryland barred Wal-Mart from constructing new stores until they improve the workers pay and benefits which at the end of the day hurts Wal-Mart's overall image and its profits. Being number one means that you are the target of competition, locally and globally. Being a global...
