Walmart's Economic Environment and SWOT Analysis Paper Example

Paper Type:  Essay
Pages:  6
Wordcount:  1444 Words
Date:  2022-05-26


Walmart Inc. is an American multinational retail corporation with headquarters in Bentonville, Arkansas. The organization controls a chain of grocery stores, discount department stores, and hypermarkets (Walmart, 2018). The corporation was founded in 1962 by Sam Walton in 1962 and integrated on October 1969. Notably, the company is the world's leading corporation by an income of around $480 billion - and additionally the most prominent private proprietor on the planet with an average of 2 million representatives.

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Economic Environment

Income Tax Rate

In Kuwait, foreign organizations are liable to tax assessment to the degree of the outside proprietorship (Pkfcom, 2018). Corporate income tax is forced just on the capital and profits increases of external 'corporate bodies' leading trade or business in the country, through a specialist or directly. Notably, income earned from trade in the country should be viewed as subject to a charge in the nation on the premise that it is a Kuwait-sourced wage. Where an agreement includes the execution of work both inside and outside Kuwait, the whole income from the agreement must be accounted for charge including the work completed outside. Outside organizations carrying on exchange or business in the seaward zone of the parceled nonpartisan zone under the control and organization of Saudi Arabia are just subject to a charge in Kuwait on half of their assessable profit under the law. The shareholding organizations are required to pay 1% of their net profits according to their money-related explanations, after exchange to the statutory save and the balance of misfortunes conveyed forward, to the KFAS, which underpins logical advance.

Interest Rates

The benchmark loan cost in Kuwait was last recorded at 3 percent. Financing cost in the country reached 3.76% from 2018 to 1999 until, achieving an unsurpassed 7.25% in April of 2000 and a record low of 2% in October of 2012 (Pkfcom, 2018).

Kuwait's Official Exchange Rate

According to the World Bank, official swapping scale (LCU per US$, period normal) in Kuwait was accounted for at 0.30217 amid 2016. The market capitalization of recorded organizations (% of GDP) is 105 % Listed local organizations, adding up to 196 Stocks exchanged (Philippe, 2011.

Labor Laws

All work laws in private division are authorized by Ministry of Social Affairs and Labor (MSAL). Notably, the law is appropriate to every single private segment aside from the accompanying - local hirelings, laborers on impermanent contractual workers and specialists working in under a half year.

Arbitration and Mediation

The country's law grants two contracting gatherings to choose a remote purview to represent the terms of their understanding, and in addition to hearing any question that may emerge over the assention. While the law grants courts in Kuwait to issue a request for the execution of judgments rendered in a remote purview under constrained conditions, the courts are for the most part not in the act of upholding outside judgments. The courts do, be that as it may, give issuances to execute outside arbitral honors.

According to Article 199 of Law No. 38 of 1990, or the Civil and Commercial Civil Law gives that remote judgments might be executed in the country if the outside law being referred to is corresponding in perceiving and implementing Kuwaiti judgments, regardless of whether by bargain or point of reference, and just as per indistinguishable conditions from accommodated in the laws for the execution of judgments made in the country.

Personal Data Protection Law

As a result of the current technological advancements in the communication field in view of the trading of data through present-day communication frameworks, the national assembly of Kuwait issued Law No. 20 of 2014 (regarding Electronic Transactions known as the "ET Law" (Nyulawglobal, 2018). Chapter Six of the ET Law introduces an idea associated with what is referred to in different purviews as data privacy. Even more particularly, agencies, public entities, government specialists, and non-legislative authorities will not have the capacity to get to, uncover or distribute any "individual information" or data kept or archived on electronic information handling frameworks related an individual's work, social life story, wellbeing condition, budgetary status or other individual data held by or documented with any element or expert recorded in the law. Notably, this limitation is stretched out to its workers who by prudence of their activity or position may approach such data, unless and until the point that such utilize, and revelation is allowed or agreed to by the proprietor of such information or data, or his/her legitimate delegate, or where order of the court approves the same.


The country's foundation part is relied upon to develop by 15-20 percent because of the administration's present five-year design (2015-2020). The design centers around financial change and usage of a few since quite a while ago slowed down super undertakings, with a few great foundation ventures assessed at $124 billion. The five-year design incorporates various framework redesigns, alongside the USD 2.6 billion Sheik Jaber Causeway, which will interface the Shuwaikh port zone in the south with arranged urban communities in the north that are being developed, the USD 7 billion Kuwait City Metro; a rail venture that will in the long run connect the five GCC nations.

The Railways Network

The country's Metro Rail is 171kilometre long internal city transport networking the city which intends to facilitate the expanding movement of blockage on the city streets still improving the personal satisfaction by settling every day driving problems. The network will have four lines, line 1 is 23.7km long with 19 stations and will connect the metropolitan region of the south with the focal point of the city and the first college. Line 2 will be 21km long with 27 stations networking the principle business region with the local locations of Hawally and Salmiya. Finally, line 3 will be 24km long with have 27 stations.

Analysis of the Kuwait Tourism Market

Tourists' Turnover

The tourism industry in Kuwait is estimated to be worth $1 billion by 2027 (Arabianbusiness, 2018). Notably, in 2016, 70% of the tourist were corporate explorers, and as indicated by an article on ArabianBusiness, the country will set aside $1billion for advancing tourism throughout the following seven years as it expects to build guest numbers to 440,000 a year by 2024. Also, a Supreme Commission for Tourism is being built up to start the nation's tourism technique and manage various uber ventures that will get billions of dollars in speculation. They incorporate Silk City and Madinat Al Hareer; the extension of Kuwait International Airport to suit 25 million travelers for each year by 2025; and cultural attractions, for example, Sheik Saad Al Abdullah Islamic Center. The World Travel and Tourism Council appraises that movement and tourism interest in the country is set to rise 1.5% for every annum throughout the following ten years to $445m every year in 2027(Arabianbusiness, 2018).

Consumer Segmentation

Kuwait's populace is genuinely youthful, with the lion's share falling younger than 40 and somewhere in the range of 25% more youthful than 15 (Arabianbusiness, 2018). The consumer spending keeps on ascending-by 4.3% in the vicinity of 2015 and 2016, in good terms-driven to some extent by eager more youthful purchasers who regularly spend liberally as they take after worldwide patterns and forms in an extensive variety of item segments.

Competition Analysis

SWOT analysis


Walmart has a center ability incorporating its data utilization innovation to aid its universal logistics paradigm and can monitor how its products are performing at a glance in Kuwait.

A centered methodology is incorporated for advancement and administration of human resource. Walmart puts cash and time preparing holding and individuals as well as ensuring their development.


Walmart is the world's biggest retailer of groceries and control of its domain, despite its IT strengths, could leave it weak in numerous territories as a result of the gigantic traverse of control.

Because the organization offer products crosswise in various parts (stationary, food, or clothing), it may fail to have the adaptability of a portion of its more engaged competitors such as Carrefour.


Kuwait's retail area has developed by an average of around 10% in the previous five years.

Kuwait is in fourth place worldwide as far as potential opportunities for worldwide retailers as indicated by Global Retail Development Index (GRDI).

Increase in the accessibility of committed retail space, which is opening up new open doors for retailers.


The company is the objective of rivalry locally and universally by different associations such as Carrefour in Kuwait.

Walmart is presented to political issues in Kuwait since it is a leading global retailer.


Domhoff, G. W. (2011). Wealth, income, and power.

Nyulawglobalorg. (2018). Nyulawglobalorg. Retrieved 19 May, 2018, from

Paris, C. M., Marochi, B., & Rubin, S. (2017). Tourism development in Kuwait: examining the political-economic challenges in a unique rentier economy. International Journal of Diplomacy and Economy, 3(4), 301-315.

Pkfcom. (2018). Pkfcom. Retrieved 18 May, 2018, from

Philippe , D.K. (2011). Exchange Rate Policies in Arab Countries: Assessment and Recommendations. Economic Policy

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Walmart's Economic Environment and SWOT Analysis Paper Example. (2022, May 26). Retrieved from

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