STUDENT NAME

Registration number
Contents
WALMART...................................................................................................................................................2
Background and Introduction......................................................................................................................2
Mission and Vision...................................................................................................................................2
Aspects and Digital Transformation.............................................................................................................3
Big data....................................................................................................................................................3
Use of Mobile Platforms..........................................................................................................................3
Better services and Online Transaction...................................................................................................3
Research Literature.....................................................................................................................................3
Market Share and Holdings.....................................................................................................................4
Market Analysis...........................................................................................................................................5
PEST Analysis...............................................................................................................................................5
Political....................................................................................................................................................5
Economic.................................................................................................................................................5
Social.......................................................................................................................................................5
Technology..............................................................................................................................................6
SWOT analysis.............................................................................................................................................6
Strengths.................................................................................................................................................6
Weaknesses.............................................................................................................................................6
Opportunities..........................................................................................................................................6
Threats.....................................................................................................................................................7
Critical Ideas and Recommendations..........................................................................................................7
Recommendations.......................................................................................................................................8
References...................................................................................................................................................9
WALMART

Background and Introduction

Walmart is the retail organization that sells ready to assemble furniture, household items, goods,
and services for the home. Walmart is the world largest retail store in 2008, the company was
originated by Sam Walton in 1988 and it headquarter is mainly located in America, the company
is working as a multinational conglomerate that works in different businesses. The name of the
brand is an acronym that consists of the initials of the founder and has also includes the name of
its family. This was added to the name of company because this is the place where Walton was
born, his name was also included in the brand name. He started the company in 1950 and as mail
order business to sell the goods and establish a retail store. The first stores of the company were
outside the America and after the success of the business, it keeps on openings its stores in
different other location (Walmart, 2018).

Mission and Vision

The company is renowned for making different designs of retail stores goods, kitchen appliances
and the furniture, the designs and patterns of furniture are highly exquisite which makes it
different among other existing companies. The interior design work of Walmart is eco-friendly,
and it adds further beauty into the house. Walmart has its stores around the globe and people
rushed to buy the goods and services and other items for their house. Walmart is known for cost
control, and continuous product development that has reduced the prices of Walmart by two or
three percent. It controls the cost by providing the delivery service to customer and minimize its
operations, it reduces the prices and also gives edge to company in the market (Walmart.com.,
2017).
Walmart is a company that is based in America, it manages and own the Walmart group. It
manages the operations of Walmart and take care of all the retailer, cost centers, suppliers, and
other products and services manufactured by Ikea. However, Walmart brand is managed and
owned by the Walmart systems that are also operating in the America, they are in charge of the
manufacturing, supply and designing of the exquisite furniture and other products. It is owned by
the Walmart Holdings, and they also managed their business operations along with the other
holding companies. Walmart group is the franchisee, and it is liable to pay 3% royalty to the
main Walmart Systems. It is claim that Walmart and Inter Walmart Group are both unrelated
parties, it was done for the taxation and accounting purpose. However, these both companies are
managed by the Walton family and other associated (Avant, 2019).
Aspects and Digital Transformation

Big data

Walmart as uses the big data technology to keep connected with its customers and get the
complete information of the customers. They uses the big data solutions and informs the
customers about the upcoming promotions and sales offers. This big data sinks the full
information of the customers and informs the company about the needs and wants of the
customers. The customers can easily place their order and access different products using the big
data technology (Caesaria, 2017). Walmart uses this technology to complete the transactions and
complete all the data of the customers, different other companies are also using the big data
technology to increases their sales and revenues.

Use of Mobile Platforms

Walmart has now launched its application and it has now offered the services at the doorstep.
The online delivery and placement of orders are taken place through the mobile, the information
of the products and services is available on the mobile. The company has its own website that
allows customers to get the direct access of the products and services. The mobile platform gives
access to the location of the customer and company can easily locate the customer using the GPS
services installed in the phone. Customer can easily customize the order by mentioning it in the
order, the mobile platform has given the access to view different options (Boon, 2014).

Better services and Online Transaction

Walmart provide better services and gives the online transaction facility; the quality products are
provided to the customers. The customer view the application of the Walmart and places the
order, the company ensures the quality services and allows customers to pay through online
banking. The online banking allows customer to easily buy the product anywhere and anytime.
The prices are highly affordable and can be negotiated with the company, it gives products and
services at affordable cost (Chaffey, 2019).

Research Literature
The research purpose is to identify the trend affecting the business and its impacts on the
stakeholders. The main trend affecting the business is the competition of scarce resources in the
market. The research on Walmart has been conducted and its market structure has been viewed,
it is also observed that competition arising through scarcity has been negatively affecting the
business of Walmart (Jake, 2015). It has decreased sales and business is eagerly present in the
race to get the raw material. The suppliers are not providing the raw material because of low
availability of resources but Walmart is also finding its way to enter in the market. The sales of
the Walmart are affected due to the outbound services provided to the customer due to the
Walmart. The pandemic impacted and contributed a lot in creating the scarcity of resources. The
pandemic forces the Walmart stores to close and decreases the supplier’s activity. Amazon,
IKEA, eBay, and other retail businesses have grown in power, and they are competing to get
more market share. It is reported that Amazon has the biggest share in the market related to retail
services (Chapman, 2017).

The finding signifies that Walmart must develop a plan to overcome the problem arising from
the unavailability of resources. It signifies that decrease in sales also influencing on the value of
the company. Walmart must bring innovation into the company by advances in home appliances
using solar energy. Since, there is scarcity of raw material or other things, Walmart can use solar
panels in its home system or kitchen appliance. The research signifies that competition in the
market can be reduced by increasing the supply of products. Walmart increases its supply of
products to retain the customer otherwise customer is ready to bear the switching cost. Walmart
utilize the product line that is present in abundance and leaves the worry of the product that are
not available. It must maintain the sales in every possible way.  

It was concluded that Walmart is facing the market trend and it is influencing both the
stakeholder and Walmart. The competition arises from the scarcity of the resources and is highly
vulnerable and increases the demand of the product. It refrains suppliers from providing
resources to the businesses, it leads to competition in the market. COVID-19 has also contributed
to increasing the scarcity of resources by decreasing the market activity. Walmart must overcome
this problem by bringing innovation and creativity to the market. It focuses on the products that
are high in quantity, it starts selling the products which are available first. Walmart uses its
contingency plan or alternative strategy to eliminate the market trend (Dan, 2017).   

Market Share and Holdings

It is reported by member of European parliament that this business structure has been adapted to
avoid the tax charges and the company has managed to avoid the tax of €1 billion over the period
of 2009 to 2014. Walmart has managed to open 422 stores in 50 different countries, the company
has able to sell the €38.8 billion (US$44.6 billion) worth of goods across the globe. In 2018,
Walmart has generated massive revenue and all the stores are managed under the Inter Walmart
group and most of the other stores are operated by the Walmart group (Hutt, 2017). Walmart has
its own website and it display different kinds of products and services, it displays 12,000
products and around 2.1 billion visitors pay visit to the online website from year 2015 to 2016.
The company is entitled to use only 1% of the retail products and uses world commercial wood
consumption and it is considering the largest manufacturer and user of products in retail industry
(Dechert, 2019).
Market Analysis

PEST Analysis
The company has been engaged in variety of programs and is keep on improving its products and
services. Walmart has done the PEST analysis before stepping in the environment. The analysis
talks about the macro-economic factors present in the environment and how the company
responds to these changes.

Political
Walmart has opened its stores in 41 countries and each country has its own rules ad policies that
bind the political environment. Walmart stores are operated and managed by the company itself
and it tries to enter in the stable countries. The political environment has strong influence on the
Walmart as it wants to enter in those countries that are politically stable and gives benefits to the
company. However, different countries has different trading policies, and it don’t allow the
imports and exports of the Walmart. This disrupts the functioning of Walmart as it tries to
intervene in those countries. Different countries like India and China are more open to the brand
and they allows companies to enter in the market. The free trade activity increases competition
but also bring employment opportunity (Dent, 2016).
Economic
Walmart got affected by the international laws and it has its own policies which are implemented
in different stores. however, upon stepping in international business, Walmart has to follow the
international laws. Even now, many big companies are suffering from the crisis that happened in
2007. It allows many people to forgo their jobs and experiences a huge downsizing, employees
are forced to be homeless. People were only buying the necessary goods and luxury items were
off the table. People still buying the retail goods but the other upgrading items like mattress,
dressing table, and couches were out from the table. Walmart knows about the economic
conditions and therefore keeps the prices relatively low; it allows people to buy goods and
services from Walmart. It helps people saving money and every time an individual saves a dollar
or two. Walmart has experience strong and low economy, however the market conditions have
improved and now sales are rising again (Edwards, 2016).
Social
It is a rule to not offend the social values of the people and it should be valued by every business.
The business should give variety of products and services to customer, it should not offend the
social values of the businesses. Walmart focus on this marketing rule and keeps the society
happy by tailoring the products and services that are in the best interest of the consumer.
However, the efforts of Walmart is not well received in the society. Walmart changes the picture
of homosexual couple from the magazine in Russian catalogue because homosexuality is
considered not good in Russia, however it is acceptable in society, and it brings storm as people
in west don’t receive this in a good way (Govand Anwar, 2021). Walmart also removed the
women from the magazine in the Saudi Arabia and it causes black lash on the company back in
west. This decreases the sales of the company and its losses some of the potential customers.
Technology
Walmart still uses the paper catalogues, and they displays different images of their furniture.
They showcase these images in their paper and persuade the people into buying. However, there
is a change of advertising because Walmart has established its website and is now allowing
people to order using their website. Different categories of products are available, and they are
offering variety of furniture designs to the customers (Guirdham, 2017). The website shows
exquisite designs of wall décor, food coloring and its helps people in decorating their homes,
offices, schools, hotels, restaurants, etc. The company is the need of every household, they
incorporate the technology in their systems that helps the people in finding the best products for
their homes. Moreover, they have assistance on the website that will guide them to operate the
website. It is a realistic experiences for the customer and they can easily order using the online
services. There are products of different price range, and it provides benefits to the customer.

SWOT analysis
SWOT analysis talks about the internal and external factors present in the market, the internal
factors includes strengths and weakness while external factors includes opportunities and threats
present in the external environment.
Strengths
The main strength of Walmart is its clarity towards the vision, and it provides better customer
services to its potential audience. Walmart has well-defined business strategy that is helpful to
sustain in the market, this business strategy helps in targeting the right audience and also acts as
a competitive edge in the market. The cost reduction strategy of Walmart is its strength, and it
reduces its cost, this will eventually increase its revenues. The company follows the cost-
leadership strategy, and it gives the best quality products in the reasonable prices which makes
the Walmart as one of the leading furniture retail company (Guirdham, 2017). Walmart has
strength to maintain its relationship with the suppliers and distributes quality products.
Weaknesses
Walmart operates its functions in different countries and there is lot of distribution cost and firm
size is also large, so it is difficult to maintain the same quality and to control standard across the
different countries. However, the company is trying level best to delivers the same quality to the
customer (Hale, 2019). The company focuses on cost-leadership strategy, but sometime things
goes in the wrong direction and the cost of raw material and inputs have increased and it effects
on the profitability of the company. It is very difficult for the company to maintain its quality
when the cost was exceeding, and less revenue was generated. The environmental factors are
also concerned for the company.
Opportunities
The company has huge opportunity to bring something new in the market, using the green
model, Walmart has the opportunity to bring the ethical products in the market. The customer are
willing to buy the products that are good for the environment and these people are waiting for the
company that would target their needs and wants (Henry, 2018). Walmart also has the
opportunity of expanding the product in different market as the markets are emerging and it can
deliver its products in different markets across the countries. Walmart is planning out expansion
charts to enter in the new markets.
Threats
The low-cost strategy of the Walmart is copied by many existing competitors likes IKEA and
Amazon; they are also diversified range of products in the low prices. They are doing so to
eliminate the competition from the market. Now, it is time for Walmart to come up with different
strategy to retain the existing customers and also provide the quality products and services to its
customers. The advancement of internet and technology allows people to go for the online
retailers that are giving variety of services to its customers (Hooley, 2020). Many customers feel
enlightened to buy the goods and furniture via internet and they don’t have to go to stores
physically.

Critical Ideas and Recommendations

The ongoing competition in the market arises from the behavior of the suppliers. The supplier
has restrained the supply of the products that limits the quantity of products. Since, these
products are high in demand and low availability of these resources make it scarce. This trend is
making the life of retailers and businesses miserable, most of the businesses who were
performing well in the market closed themselves (Kotler, 2019). It was done because there was
no availability of goods and services in the market. The demand and supply of the product
depends on the price and willingness of the consumer to buy the product. When the prices of the
product lowers down, the demand of that product increases. But the supplier decreases the supply
of that product to gain more profit. This is done to gain market share in the industry. The
competition arises in the market for the availability of scarce resources (Walmart, 2018). The
people are willing to pay more money for the scarce resources. All the competitors' companies
strive hard to get those products and services, they try to gain the supplier buying power by
offering them a variety of services.

The business of Walmart has come to halt due to the scarcity of the raw material; the shortage of
other products also decreases the level of business. This happens because the market was not
supporting the demand and supply of resources. There is demand for products, but their supply is
less from the end. Some businesses have already kept the products and goods in the warehouse.
This is done to create an artificial bubble or sell these products at high prices. It was reported that
Walmart 's suppliers are engaged in illegal transport of retail products, which decreases the sales
of the company (Klare, 2019). However, it is the case of misrepresentation, but the business of
other companies started increasing and they were selling the product at higher prices. Same
situation happens when scarce resources suddenly become available at one store, people urge to
buy those products at high prices.

Recommendations

The COVID-19 also contributes to rising the trend of scarcity and low availability of goods.
Walmart should establish a system to deliver the goods at home, it brings foldable tables, home
appliances and other hardware systems. It should introduce the smart technology in its product to
bring innovation and attract the customers (Hutt, 2017). There are retail stores of Walmart in
many countries but the pandemic deprived people from visiting the stores and they were forced
to stay in their houses. This decreases the business; however, Walmart should starts delivering
the goods at doorstep. This affects the business because people while shopping for one product
often buy other things also. COVID-19 brings the sale down due to the shutdown of all stores.
Walmart must introduce the outbound services of goods that increase the cost of the product.
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