If you seek a five forces analysis of Wal-Mart, please try this page.

In his Five Forces theory of industry analysis, Michael Porter identifies several “barriers to entry”, i.e. economic, technical, financial, and other “obstacles in the path of a firm which wants to enter a given market.” Among the “barriers” mentioned by Porter in “Note on the Structural Analysis of Industries” is “Government Policy.” About this force he says:

“Government can limit or even foreclose entry into industries with such controls as licensing requirements and limits on access to raw materials ( like coal mines or mountains on which to build ski areas). Regulated industries like trucking, railroads, liquor retailing, and freight forwarding are obvious examples.”

While retail is not included in Porter’s list of regulated industries, entry into foreign retail markets inevitably requires the approval of the host country’s government. As a result, firms like Wal-Mart, which does business in several foreign countries, may face higher and/or different barriers to entry abroad than they do at home. Point in case is Wal-Mart's attempt to build a store in Cabo San Lucas, Mexico.

The world's largest retailer won preliminary approval on Tuesday to build a Wal-Mart in Cabo San Lucas after an almost two-year battle, but opponents vow to continue fighting the project with demonstrations or by blocking roads.

The Los Cabos city council voted unanimously to give conditional approval for the store, requiring it to be nonintrusive, pass environmental studies and not excessively affect traffic in this fishing and resort town of about 80,000 at the tip of the Baja California peninsula.

Residents and shopkeepers fear that the store — first proposed, and rejected, at a site near the middle of the city — could harm the town's laid-back atmosphere, where sports fishermen and tourists mingle with locals on the streets. Some also worry the store might replace the trademark stone sea arch as the first view people have when they drive into the city.