Walmart Global Discount Retailer Moves From Brink And Mortar To Click And Mortar

3995 words - 16 pages

Since San Walton opened his first store in 1962, Walmart has grown into a global retailer with more than 4,000 store in the United States and more than 6,000 internationally. Walmart is comprised of three business segments, Walmart US, Walmart International and Sam’s Club. Walmart Global eCommerce works across all three segments. Walmart’s mission statement “We save people money so they can live better”, is not indicative of where its strategic focus areas are, but it does sound good for the average customer who has a limited budget. This mission statement leads directly into Walmart Global eCommerce goals which include combining online, social innovations with physical stores to give ...view middle of the document...

Walmart is moving from a traditional brick and mortar discount retailer to a click and mortar discount retailer as it tries to capture the growing electronic retailing (etailing) opportunities.
According to CNN Money, Walmart plans to become an online juggernaut, but its online business numbers have been disappointing. According to Business Insider, Walmart Global eCommerce has come up with a plan to do eCommerce right by using the following strategies:
• Walmart began recruiting top Silicon Valley talent and acquiring start-ups last year.
• Walmart is investing in the "social gifting" market.
• The retailer got a better search engine.
• Walmart is trying to lead the charge in same-day shipping.
• Walmart is investing like crazy in its mobile app.
While Walmart’s strategies have lead them to overall very good profitability in the past, their eCommerce is struggling against Amazon, an eCommerce giant, and other traditional retailers who are moving to capture customers that are turning to online purchases. Walmart appears to be moving in the right direction with its mobile application, with Smartphone sales having outpaced personal computer sales in 2011. Walmart Global eCommerce will need review and tailor its value chains in order to comprehensively differentiate itself from other click and mortar businesses.
As 2014 approaches Walmart will face several issues/problems which include: Customers who can access competitor prices online when shopping in Walmart; and finding ways to successfully break into the e-tailing market which is a primarily untapped, rapidly growing market.
The SWOT analysis will look at Walmart Global eCommerce as it attempts to move definitely into eCommerce while supporting all Walmart’s traditional brick and mortar businesses. Since Walmart Global eCommerce is responsible for all online and mobile innovation, this SWOT analysis will include issues pertaining to all of Walmart, but will pay particular attention to the eCommerce aspect.
Stakeholder Analysis
Walmart Stakeholders include the stockholders, executives, employees, suppliers, customers, non-profit groups, non-governmental organization, the communities that Walmart serves, online retailers, brick and mortar retailers, labour unions, and the government (politicians). These stakeholders can be divided into two separate groups: market and non-market stakeholders. Market stakeholder are those who have an economic stake in what and how the company does, whereas non-market stakeholders have a non-economic or political stake.
Market Stakeholders
Walmart shareholders are a market stakeholder who want a return on their investment in Walmart. Between 2009 and 2013 more than 60 billion dollars was returned to shareholders through dividends and share repurchases. Walmart executives, like shareholders, have an economic stake in what Walmart, since many receive stock options. Although employees may purchase stock options, they are a market...

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