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Part 1-Analysis

Swot Analysis

Strengths

 Cheap pricing in the e-commerce division made possible by the company's massive

economies of scale and the efficient use of its existing assets for selling products and

completing orders.

 Worldwide visibility as e-commerce serves globally.

 Incorporating a well-organized data system into an established distribution network

Weakness

 Reliance too much on the American consumer market

  Damaged reputation and unfavorable press due to Walmart's physical store issues with

employees.

 Weak net profit margins as a result of both price cuts and heavy expenditures in the

infrastructure of online retail.

Opportunities

 The proliferation of more capable robots and automation systems paves the way for fully

automated warehouses and shops with no human employees.

 Increased use of AR and VR to enhance consumer experiences in stores

 By 2024, the online shopping business is expected to be worth US$6.3 trillion.

Threats

 The increasing likelihood of consumer data leaks used for online transactions.

 Hackers making use of previously discovered flaws for their personal gains.

 Potentially more cases that are harmful to brand resulting from data leakage.

Porter 5 Forces

Competitive rivalry-High
 The level of competition a brand has in the industry is an external issue that may

significantly affect the company's health and viability. To begin, many e-commerce firms are

battling with Walmart's eCommerce, including giants like Amazon and eBay, which bring in

billions of dollars annually in revenue. Every business in this industry tries to outdo its rivals by

coming up with innovative strategies, wares, and offers to attract and retain clients. That way,

they may keep up their strong-arm tactics until they ultimately push their rivals out of business.

Competitive competition is a highly potent factor for Walmart's e-commerce because of its

enormous number and diversity of e-commerce enterprises and high competitiveness.

Threat of New Entrants- High

Sales and market share for an established business might be threatened by new

competitors entering the market. Technology now makes it simple to launch an e-commerce site.

There have been significant shifts in the retail sector due to the proliferation of digital technology

since many more firms have begun selling their products online. Therefore, one need not

necessarily invest a large sum of money in entering a field of e-commerce that has the potential

to rival Walmart. As a result, there is a significant danger of new competitors entering the

market.

Power of Buyers-high

To turn first-time customers into loyal patrons, the e-commerce division prioritizes their

needs above all else, from the speed with which their orders are processed to the quality of their

products. In addition, shoppers have plenty of alternatives to choose from because of the rising

popularity of internet shopping. Shoppers may exert considerable leverage on the E-commerce

division due to the abundance of alternatives available.

Power of Suppliers-low
 Firstly, there are many suppliers to pick from, giving E-commerce division a great deal of

leverage since it can always move to a new provider if it is unsatisfied with its service. There is

also intense rivalry between retailers, all of whom are vying for the attention of buyers at places

like E-commerce division. Customers, emboldened by discounts and other enticements, can

undermine and ultimately overtake them. Lastly, a large stockpile is available since most of E-

commerce division's offerings are consumables and essentials. Therefore, the suppliers have little

leverage in negotiations.

Threats of Substitutes-high

E-commerce division's alternatives include Amazon, branded outlining, and e-commerce

sites offering the same products as Walmart. E-commerce division is at a high risk of being

replaced by a competitor since it offers no distinctive products or services. Customers are easily

dissuaded from returning to an online store after a single negative interaction. Therefore,

Walmart's e-commerce division faces a higher risk of substitution.

Strategy-Consumer Intimacy

Walmart's e-commerce strategy makes use of consumer intimacy as one tactic. Every

effort is made to meet the needs of consumers, and the addition of almost a million additional

products to the e-commerce site is just one more manner in which the company is responding to

consumer demand. In order to facilitate voice-activated shopping for Walmart items through

Google Assistant and Easy Re-order via Google Express, google and Walmart have entered into

a cooperation. In other words, Walmart can now offer the "mass customization" approach that

Amazon has conditioned its customers to expect by using the data gleaned from this agreement

to personalize each customer's purchasing experience.

Value Chain Analysis

 The consumer intimacy department of the e-commerce company will create the plan for

the whole customer service process. Customers want to be treated as individuals; thus, the

division relies on consumer intimacy to facilitate conversations with customers, learn more about

them, and develop lasting connections to satisfy their ever-evolving and increasingly-stringent

demands.

Additionally, the e-commerce division's market value will be boosted due to increased

customer intimacy, as the latter will better grasp the types of value that consumers seek and how

to provide it.

Part two-Strategic Plan

Mission, Vision, and values

Vision: Make it possible for people all over the globe to shop for and purchase any kind

of consumer goods from the comfort of their homes, taking advantage of the broadest range of

options and the greatest pricing.

Mission: To become the world's most remarkable e-Commerce firm in terms of revenue

so that we can assist individuals to live better, rejuvenate the planet, and develop flourishing

sustainable infrastructure.

Values: Every decision we make is grounded in our core principles, which we strive to

uphold in all interactions with our customers, employees, and the wider world. These principles

guarantee that our connections with all our clients will be long-lasting and rewarding; our core

beliefs are integrity, responsiveness, innovation, and aggressiveness.

Goal 1

To raise the average order size in the e-commerce segment to enhance the poor profit margin.
 Initiatives 1: Recommendations: When adding new items to the website, the e-commerce

section needs to design an algorithm or manually type in connections for products near one

another. Good automation is preferable for speed, especially when someone is there to spot-

check how suitable the suggestions are and make any necessary adjustments.

Initiative 2: The e-commerce section needs to consider providing free delivery once a

certain amount has been spent. Many customers are eager to add things to their shopping carts to

qualify for discounts, which may increase the gross profit margin due to greater sales.

 Tactic 1: The e-commerce division should have several ways to connect with consumers.

 Tactic 3: Putting up a banner on the online storefront advertising free delivery

Goal 2

To eliminate the need for consumers to look for alternatives or replacements in the e-

commerce division.

Initiatives 1: Differentiation. By developing a one-of-a-kind product offering, the e-

commerce division will ensure that its consumers can fulfil a need with the assistance of a single

item alone and will not be readily persuaded by other options. There are extra advantages that are

not accessible in the product that is being used as a replacement.

Initiatives 2: Value to the Client: When making a purchase, clients often search for a

product that offers the greatest deal for the money. In order to do this, the e-commerce

department needs to provide a memorable shopping experience for clients by providing quick

delivery and a swift response to customers' suggestions and complaints.

 Tactic 1: To encourage people to purchase at the online store rather than a competitor's, it

is essential to provide them with things they cannot get anywhere else.
  Tactic 2: Streamlining the flow of the online store so that clients can easily find their way

around and purchase items.

Goal 3:

Fortifying the e-commerce division's name in the face of negative headlines and a tarnished

image.

Initiative 1: Providing high-quality material for all online mediums. Providing

informative and valuable material will help you gain the confidence of the present clientele while

also attracting new, ideal ones. Through visual and textual material, the division may humanize

itself and strike an emotional chord with its audience by telling its story and the stories of its

customers honestly and transparently.

Initiative 2: Ensuring the safety of all online purchases at all times. As more and more

consumers use our e-commerce division's offerings, safe payment choices and easy navigation

are at the top of their wish lists for a satisfying online buying experience.

 Tactic 1: Encrypting financial dealings for transport safety

 Tactic 2: Seeking and considering the opinions of one's clientele

 Tactic 3: Providing complete transparency on all fronts so that consumers know exactly

what to anticipate, from exchanges to shipping and completion costs.

Goal 4:

Inspiring vital changes to the e-commerce website to maintain a counter bad reputation

Initiative1: facilitating user-friendly e-commerce capabilities is a priority.

Initiative 2: Including customer ratings, comments, and suggested purchases on the e-

commerce website

 Tactics 1: Accelerating the loading of the page

 Tactics 2: Enhancing the client's overall shopping experience while simultaneously

growing their lifetime value as a customer

 Tactic 3: Monitoring the continuous movements in the industry and ensuring that

potential customers may access your website.