As a business consultant for Walmart this business plan will provide an overview of Walmart's strength and weaknesses as well as how they can turn their strengths into opportunities while trying to minimize forthcoming threats in the industry. This plan will use external as well as internal analysis of the company, but will begin with a bit of an overview. Walmart is the largest multinational retail chain of department and warehouse stores in the world. Walmart operates discount stores, supercenters, which include grocery as well as general merchandise and Sam's Club warehouses are around the world.
Walmart is publicly traded on the New York Stock Exchange and is currently being valued at about $60. 62 per stock with an enormous market cap of just over $200 billion. 1 There is at least one Walmart store in every single state and a total of over 8,500 in 15 different countries. 2 With their size and dominance over the wholesale retail industry, Walmart has been a leading discount department store and must continuously be adapting to new technology and consumer trends.
The biggest competitors of Walmart are Costco's and Target, however as of the latest fiscal year both of their revenues barely surpass a fourth of Walmarts $440 billion revenue. 3 Walmart has a unique opportunity to connect to the upcoming generations through new era technology such as smart phones and social networking. However, one of the biggest issues Walmart is facing will be to keep up with the ever changing technology. Walmart cannot afford to be left behind and let their global internet sales decline because they are not in tune with the new age technology.
This paper will provide Walmart with a business plan regarding their most intriguing opportunity, which is boosting their internet sales by connecting with the new generation through new age technology. Computers and smart phones have become part of daily life. Personally, I cannot remember a day where I have not looked at my laptop or IPhone. Walmart must beef up their e-commerce section of their organization by adapting to new age technology, which will then connect them to the upcoming generations.
If Walmart wants to continue being the number one retail giant in the world then they must also become the number one online retail giant as well. The recession can be an economic opportunity as well as a threat to this industry. The recession has made consumers more aware of how they spend their money making them less frugal. While the recession may have taken a deep swing at consumer spending, it also made them realize that they need to get more value for every dollar they spend.
No industry does that better than the wholesale retail industry, which gives the consumer more for their dollar than other specialty stores. Environmental An opportunity for this industry in the environmental sector can be that the new generation is all about going green. This industry can really help out this new idea by selling more "green" environmentally friendly products and maybe even opening an department in their stores for "green" products. Legal Environments
An opportunity facing this industry will be the generous tax breaks given to monopolies in this economy. Politician and lawmakers are generally very friendly to large corporations, such as the ones in this industry because they supply numerous amounts of jobs to the public. Political An opportunity facing this industry is the free trade agreements between countries, for example NAFTA. With globalization becoming bigger and more prominent in every industry, free trade can be a very valuable asset for companies in the wholesale industry.
Sociocultural An opportunity facing the industry is the consumer need for an easy, cheap, one stop shopping center. This is exactly what the wholesale retail industry is all about; Cheap, convenient shopping for people of all needs. Consumers are cutting back on their spending now more than ever and are starting to value their dollar. Wholesale retailers are where the consumer can get the most bang for their buck. Technological An opportunity facing the industry is the up and coming use of new age technology such as smart phones and e-commerce.
More and more people are purchasing products over the internet because it is much easier and convenient. There are no lines, no transportation cost and the constantly decreasing shipping costs. Also, there is an opportunity to take advantage of the popularity of Apps on smart phones. This will take online shopping to a whole new level where one click of a button on the I Phone can lead to an entire stores products, services and locations.