Walmart invests up to $400 million annually in securing data andenhancing security measures.● System availability: Walmart''''s systems must function efficiently anddependably to manage ord
Objective
The history of formation
Walmart Inc., also known as Walmart, is a publicly traded American corporation recognized as one of the world's largest companies based on revenue, as reported by Fortune 500 in 2019 Its establishment dates back to October 31, 1969, when founder Sam Walton established the company Walmart became a publicly traded entity on the New York Stock Exchange in 1972.
About the founding history, in 1945, businessman Sam Walton bought a branch of the Ben Franklin store from Butler Brothers His main focus is on selling products at low prices in order to achieve higher volume sales against lower profit margins, describing it as a pro-consumer rally He had encountered setbacks because of unusually high rental and branch prices, but he found a supplier that cost less than the ones the stores used differently and could therefore compete compete on price with competitors Sales grew 45 percent in the first year of ownership, reaching $105,000 in sales, growing to $140,000 the following year and $175,000 the following year In its second year, the store generated $250,000 in sales Walton opened a new store at 105 Main Street in Bentonville when the venue's lease eventually expired and he was unable to reach an agreement to renew and naming it
"Walton's Five and Dime." and now it is the Walmart Museum
On July 2, 1962, Walton built the first Wal-Mart Discount City location in Rogers, Arkansas, at 719 W Walnut Street Its design was inspired by Ann & Hope, which Walton visited in 1961, as well as Kmart founder Harry B. Cunningham The name comes from FedMart, a discount department store chain founded by Sol Price in 1954, whom Walton also drew inspiration from Walton says he likes the idea of calling his discount chain "Wal-Mart" because he "really likes Sol's name FedMart" The company's "No 1 Store" has since expanded into a Super Mall a few blocks west at 2110 W Walnut Street The company expanded to
18 stores in Arkansas and generated $9 million in sales in just a year since it started business In 1968, its first stores were opened in Arkansas in Sikeston, Missouri and Claremorel, Oklahoma To date, Walmart has been present in many countries, Wamart operates in Mexico as Walmex, in the United Kingdom of Great Britain and Northern Ireland as ASDA, and in Japan as The Seiyu Co., Ltd Companies wholly owned by Walmart located in Argentina, Brazil, Canada, Puerto Rico, UK.
Walmart currently has more than 4000 stores in the US and more than 3000 stores in 13 countries, they said they are considering setting foot in Southeast Asia with potential markets such as Vietnam, Thailand, Indonesia.
Vision and mission
Walmart Inc (formerly Wal-Mart Stores, Inc.), as one of the largest retailers in the world, has demonstrated operational success in applying mission statements. and company vision The Walmart’s vision and mission statement include the fundamental guiding principles of the business In this regard, the company's success is closely tied to its effectiveness in fulfilling its vision and mission for its retail operations A suitable general approach (Porter's model) and associated intense growth tactics (Ansoff Matrix) are both implemented as part of this process.
A joint competitive advantage strategy and an intensive growth strategy develop Walmart's business, ensuring a competitive advantage to achieve goals based on the company's mission statement and vision Walmart states the company's vision and mission through a common strategy of cost leadership (based on Porter's model) Building a competitive advantage in the face of real competitors like Amazon.com Inc and its subsidiary Whole Foods Market, as well as Costco Wholesale, eBay and Home Depot In addition, various intensive growth strategies such as market penetration and market development contribute in part to Walmart's success in holding accountable work in accordance with the company's mission and vision statement.
Walmart Inc.'s company objective is "saving people money so they can live better." This claim demonstrates Sam Walton, the company's founder,'s principles.Strategic business decisions are a direct expression of this mission statement,synonymous with the retail company's tagline, "Save money- Live Better" based on this company's mission statement, it is clear that Walmart's strategies and business goals involve using price as a selling point to attract target consumers The importance of such a selling point is noticeable in many retail company strategies, for example, the marketing mix of Walmart Inc or the low-price strategy-related 4Ps Other areas of the company The company identified the need to minimize selling prices as a way to gain competitiveness to support the company's mission statement and vision statement.Walmart meets the "save money for money" component people” in the mission statement through low selling prices For example, consumers save money by spending less when buying goods from the company's stores, compared to buying the same or similar goods from mid- and high-end stores, however, it remains unclear whether the retail company will meet the "better living" component of its mission Low wages pose challenges for Walmart employees to improve their lives, pointing to possible human resource management issues within the organization In addition, the "live better" component of the company's mission statement remains uncertain, as critics argue that the large-scale retail company's sales of low-priced imported goods have an economic impact long-term negative effects on local communities and small businesses.
The vision of the company Walmart Inc is “Become a destination for customers to save money, no matter how they want to shop.” This vision statement was formally articulated during the company's 2017 investment community meeting Walmart's previous mission statement read, "To be the best retailer in the hearts and minds of consumers and employees." The altered corporate mission reflects strategic changes Walmart has made in response to changes in the competitive landscape and general conditions of the global retail industry.Previously, the company's vision was to become a leader in the retail industry.A comparable objective is now included in Walmart's vision statement, but with an emphasis on business agility in helping customers For example, the “however they want to shop” component indicates that the company's strategic goal is to achieve leadership in brick-and-mortar and online retail or e-commerce transactions .However, the same change removed “employees” as a component of Walmart's vision statement This change represents a potential reduction in strategic support for employees of the retail giant Alternatively, a change in a company's vision may reflect human resource management issues, considering that employees are a key stakeholder group relevant to the company's social responsibility strategy company and related party management.
Business model/Revenue model
Walmart has consistently held the top spot in the global retail sector With nearly $523.9 billion in net sales in 2020, Walmart is considered the best in terms of its supply chain management practices, through its focus on increasing operational efficiency and responsiveness according to customer needs Walmart's business model is backed by its president, Greg Penner, President and CEO, Doug McMillon, and 2.2 million working individuals.
Walmart's highly automated distribution centers operate 24/7, with fleets of dedicated trucks that allow the company to move goods from distribution centers to stores in as little as two days and replenish shelves in-store twice a week Fast shipping times help Walmart to promptly respond to changes in customer needs. The company has more than 140 distribution facilities for its domestic line and more than 40 regional distribution centers for its imported line in the US alone.
When entering a new market, the company first determines if the area has enough stores to operate a distribution center Each distribution center supports 75-
100 retail stores within a 250-mile area As a hub is built, stores are gradually built around it and the distribution network is redesigned to maximize efficiency The result is shorter distances that reduce shipping costs and lead times and less safety stock If shortages occur, replenishment can be done more quickly as stores receive daily deliveries from distribution centers.
Walmart operates 158 distribution hubs around the US, from Johnstown, New York, to Bentonville, Arkansas The network of distribution centers ships everything from general merchandise to perishable groceries to Walmart and Sam's Club stores Each distribution center is more than 1 million square feet in size Each distribution center employs more than 600 loaders and transports more than 200 trailers daily Each distribution center supports between 90 and 100 Walmart stores within a 150-mile radius, with new facilities and stores appearing each year.
What sets Walmart's distribution network apart is that the supply chain in the United States and around the world is a complex system To move things from point A to point B, there are countless moving elements Walmart's distribution network is no different Since its inception, however, Walmart has been dedicated to putting supply chain efficiency at the forefront of its business model to keep costs low for consumers This means that Walmart uses innovative technology to manage its supply chain and consistently tightens requirements to maintain its cutting-edge approach.Additionally, Walmart works directly with manufacturers, enabling a more streamlined, risk-free method of product movement and an overall lower-cost supply chain Walmart's shipping strategy is totally internal, and its in- house systems allow for product tracking, inventory evaluation, and other functions.
There are three segments in Walmart's business model: a Walmart USA
This is the largest segment of the organization It manages all of its stores in all 50 US states, Washington DC and Puerto Rico This segment controls different aspects of an individual's daily necessities – Grocery, Health,Entertainment, Apparel, Hardline, and Home They provide different services as well Along with financial services, Walmart's business model offers money orders, prepaid cards, wire transfers, and bill payments They sell licensed and private label merchandise They offer physical access to customers in the form of three main store formats – supercars, discount stores, and other mini-store formats Digital access to Walmart US is a range of goods and services available to customers through e-commerce websites and mobile applications Digital stores have partnered with physical stores, known as Pick Walmart Pickup and Pickup Today b Walmart International
Walmart's international presence spans 27 countries, encompassing retail, wholesale, and other store formats These stores are operated through a combination of joint ventures and wholly owned subsidiaries Customers have physical access to these stores, providing a convenient shopping experience.
156 distribution facilities Physical stores support digital access with facilities such as Click Click & Collect (UK) and home delivery in Mexico. c Sam Club
Sam's Club is the third and final segment of Walmart's business model, which operates in 44 states in the United States and Puerto Rico This segment takes care of members-only warehouse clubs It also works at samsclub.com They provide subscription services to individual customers as well as business owners.
Report Q3 2020 results on Thursday, November 14, before the market opens. Revenue Expectation: $128.57 billion.
With ups and downs after nearly 40 years of operation, Walmart has become the world's largest corporation by revenue, far surpassing the world's second largest retailer, Carrefour of France Carrefour's sales are almost half that of Walmart's. Walmart entered the 21st century with changes in the way it approaches customers and new business forms based on the foundation of information technology, in the form of online shopping In 2000, walmart.com was established allowing customers to shop online Walmart uses more than 1.1 million links in a total of 3,989 stores and clubs worldwide In 2007, walmart.com allowed customers to make online purchases and pick up merchandise at all Walmart locations worldwide In 2009, Walmart achieved sales of more than $400 billion for the first time Today, Walmart employs 2.2 million people worldwide, serving 200 million customers each week in more than 10,000 stores in 27 countries outside the United States.
The revenue path of Walmart's business model includes a wide range of products and services for individuals in the US as well as internationally They have a wide range of items and amenities: a Product sales
Grocery: Meat, deli products, bakery, dairy, frozen foods and dry supermarkets Items are also on sale, like health and beauty supplies, paper goods, and pet supplies.
Health and Wellness: Over-the-Counter Drugs and Clinical Services. Entertainment: Electronics, toys, cameras, phones, photography Hardlines: Stationery, hardware, paint, fabric and crafts.
Apparel: For women, men, men, women, babies as well as shoes and accessories.
Home: Home furniture, home appliances, beds, home decoration. b Service revenue
Financial services: Service fees for money orders, prepaid cards, bank transfers, bill payments, money transfers, and cash checks.
Movie streaming services: Subscription revenue to buy, rent, and watch movies and TV series on demand.
Clinical services: preventive and routine health checks for some common health problems.
Business operation overview
Walmart has maintained its dominance, securing the top position on Fortune's esteemed Fortune 500 list for the fourth consecutive year With a remarkable $324.526 billion in sales and $12.731 billion in profit, Walmart continues to lead the retail industry This consistent performance is a testament to the company's unwavering commitment to providing affordable products and exceptional customer service.
2002 and is considered "America's Most Admired Company" Walmart has the highest revenue of any retail company in the world, surpassing Carrefour, the second largest The French retailer's sales are about half that of Walmart.
Walmart's global footprint encompasses over 6,688 stores, predominantly in the United States Since its inception in 1962, Walmart has experienced exponential growth, reaching an annual revenue of $1 billion in 1979 By 2001, daily sales approached that milestone Walmart's dominance is exemplified by its current size, five times larger than in 1992, and its workforce, three times that of General Motors The company's immense scale is further evident in its massive sales of individual items, such as $1.4 billion in laundry detergent annually Experts predict that Walmart's growth trajectory could result in annual sales exceeding $1 trillion within a decade In 1997, Walmart became the largest employer in the US with nearly 570,000 employees, a testament to its significant impact on the labor market.
100 billion USD In 1999, Walmart became the world's largest corporation in terms of personnel with 1,140,000 people.
If the mid-20th century was seen as the era of the car manufacturer GeneralMotors and the late 20th century as the software company Microsoft, the early 21st century is clearly Wal-Mart In the United States, more than 80% of households buy at least some product each year from its stores Wal-Mart was the first service company to climb to number one on the Fortune list (published in 1995).
Currently, the company's business is divided into 3 segments: Wal-Mart USA, Sam's Club and International, in which Wal-Mart USA is the largest segment and is expected to account for 62.1% of net sales for the fiscal year main , operating within the United States only; including different forms of retail.
A chain of discount stores (Walmart Discount Stores) was first opened in
1962 by Sam Walton Today, the company has 629 stores in the United States The average area of each store is about 108,000 square meters, and each store has about
225 employees The product categories sold include: home clothing, health products, beauty products, electronic products, toys, gardening products, jewelry, furniture, auto machinery, home appliances gadgets, sportswear…
Wal-mart Supercenters (Walmart Supercenters) were developed in 1988, and now there are 3,029 super centers in the US, with an average area of about 185,000 square meters with about 350 employees each These super malls are open day and night, serving food items, and groceries.
Walmart Neighborhood Markets were established in 1998 to meet the increasing demand for quick and easy access to essential goods These markets cater to nearby communities, with each location typically employing around 95 associates Currently, Walmart operates 168 Neighborhood Markets, offering a range of products including groceries, pharmaceuticals, and popular household items.
Wal-mart Express Stores, the first two small stores opened in June 2011 in Arkansas with the aim of providing temporary goods to customers, especially customers in non-local areas You can often go to the big stores These stores have a small area, averaging about 15,000 square meters, specializing in the distribution of groceries, and general goods In addition to the traditional sales channels, Wal- mart also developed a sales channel through the website walmart.com, with a variety of goods Customers can choose the products available on the website, and then order directly there Products will be shipped to Wal-mart stores located in the customer's area.
Sam's Club is comprised of: member boutique clubs, which contributed approximately 11.8% of FY2011 net sales Sam's Club was first opened in Midwest City, Oklahoma in 2012 1983 Currently, there are 611 clubs operating in the US, and more than 100 international clubs in Brazil, China, Mexico, and Puerto Rico. Sam's club customers include consumers, and small businesses with a yearly fee of
$35 for business customers and $40 for individual customers.
International Division (Walmart International): 26.1% of FY2011 net sales.
In 1991, Walmart opened Sam's Club in Mexico and became an international company Two years later, the International Bloc was established More than 90% of the stores in the international division are operated with non-Walmart brands, such as: Pali in Costa Rica, Todi-Dia in Brazil, and more Currently, WalmartInternational has 5,651 stores in 26 markets outside the US: Japan, China,Argentina, Brazil, Canada, Costa Rica, Chile, Botswana, El Salvador, India,Honduras, Guatemala, Ghana, Mexico, United Kingdom, South Africa,Mozambique, Nigeria.
Walmart's Canvas model before digital transformation
Key Partnerships Key Activities Value Propositions
Walmart already has major partners such as Procter & Gamble, Coca-Cola and
Kellogg's, offering consumer products in their stores.
About leading international shipping partners such as UPS, FedEx and DHL to ensure the delivery of goods.
Shipping, warehouse management, store management, product import, staff recruitment and training.
Provide customers with a convenient shopping experience, with a wide range of products and top quality products
Focus on developing online customer relationships.
Customers need to shop efficiently with competitive pricing policies and shop in bulk.
Family and locals Elderly people care about useful products for health
Retail stores: more than 11,000 retail stores globally. Advanced technology and transportation system
Human Resources: with more than 2.3 million comprehensive employees globally
Channels Cost Structure Revenue Streams
Store operating costs Transportation costs Management costs Marketing costs Financial expenses
Revenue from sales ofWalmart products and services is considered the main source of income
Analysis of enterprise
SWOT analysis
Global Brand Recognition: Walmart is the most well-known retail brand in the world, drawing millions of customers each day The Walmart online store offers more than 60 million products 47 new Walmart locations were opened in Central America in 2017, as well as 15 in Chile, 11 in the UK, and 4 in China Sales and global presence have grown as a result of its overseas operations.
Global expansion: Walmart recently acquired ASDA, a UK-based retailer, and Indian e-commerce giant Flipkart In addition, it has created a joint venture with India's largest retail store Bharti These global expansions have proven to be a huge success for the company.
Low Price Everyday' Strategy: Walmart is based on economies of scale, that's why it can offer low prices It has fixed costs for thousands of products. Therefore, it is one of the cheapest shopping places in the world
Global Supply Chain and Logistics: Distribution and logistics systems are
Walmart's core competencies It uses Information Technology (IT) to monitor the performance of every product in each store in each country.
Human Resource Management: Employees are Walmart's primary asset It invests a lot of time and money in developing and managing its employees 1% of the working population in the US is employed at Walmart according to Business Insider.
Efficient Resource Management: Walmart effectively manages its resources including information systems, supply chain networks, distribution facilities, knowledge, and other skills It works great in all locations.
Strong market power relative to suppliers and competitors: Large organizational size and global reach have enabled Walmart to exercise market power over suppliers and competitors.
Employee treatment and working conditions: Walmart has received numerous criticisms and lawsuits regarding its workforce Low wages, inadequate health care, and poor working conditions are a few of the issues that have come under public criticism.
The large span of control: It's very long size and a large span of control may leave Walmart weak in some areas.
Thin margins: Walmart focuses on a cost leadership strategy It results in thin profit margins for the company.
Gender Discrimination: A lawsuit was filed against Walmart in 2007 alleging gender discrimination claims in employment opportunities at Walmart. Female employees were discriminated against in relation to promotions and pay scales under this lawsuit.
Imitation: Walmart's business model can easily be copied The company does not possess any particular competitive advantage over its competitors except for its enormous business size.
Expansion into other markets: Walmart can seize a chance by stepping into uncharted territory China, Middle Eastern nations, and Latin American nations may be among them.
Strategic alliances: Walmart has the option to merge with other international retailers or form strategic alliances with significant corporations For Walmart, buying small businesses might be a lucrative opportunity.
Enhancing human resource practices: Bringing in cutting-edge improvements in human resource practices could be a boon for Walmart As it relies so heavily on its workforce, bringing innovation in human resource management is an important opportunity.
Improve quality standards: Sometimes cheap products give low quality.
Walmart has the opportunity to raise the quality standards of its products to address consumer health concerns.
Impeach 45 Controversy: Recently, Walmart went public for the Impeach 45 controversy It sells t-shirts that say ‘Rope Tree Journalist Requires some assembly' These shirts claim to promote violence However, Walmart overturned the controversy, arguing that the t-shirts were sold by third-party sellers on Walmart's Marketplace rather than Walmart itself.
Counterfeit craft beer controversy: Walmart was sued for selling fake craft beer in 2017 Although it's made by WX Brands, the beer is labeled and marketed as 'Trouble beer', a company production does not exist.
Main competitive target:Walmart, the biggest supermarket retailer in the world, has consistently been a preferred target Similar but higher-quality goods are available at Target, its main rival In a similar vein, Costco allows customers to purchase goods in bulk In comparison to Walmart, these businesses have a pretty high reputation for treating their employees decently Additionally, the public supports both businesses in these fields.
Political and legal issues: This is also a threat to political and legal issues that can always hinder the company from operating in some countries.
Small-scale online e-commerce companies: Numerous independent, small- scale online retailers have emerged, offering comparable goods on their websites for comparable costs It might jeopardize the company's position going forward.
Customers encounter technical issues on Walmart's website, such as disorganized product listings and slow performance Conversely, Amazon's website is highly regarded for its organization and efficiency, enhancing the online shopping experience for users.
Problems before digital transformation
2.2.1 Challenges with information technology and data management:
McKinsey analysis reveals that only 10% of retail organizations effectively utilize digital advancements Walmart, recognizing this, is investing in AI and machine learning to enhance its systems and boost data quality and reliability, ultimately seeking to bridge the gap in digital efficiency among retail organizations.
● Big Data Management: Walmart has billions of customers, products, revenue, and financial records, which makes organizing and analyzing this data to make wise decisions extremely difficult determination in business.
● Complex information systems: Walmart uses more than 70 different information systems, including POS systems, warehouse management systems, supplier ordering systems, financial management systems, and systems ERP, and more Walmart uses a variety of information systems to manage the business, from inventory management systems to ordering software for suppliers Combining these systems to provide accurate information is an obstacle.
● Data security and privacy are very important since Walmart holds a lot of private information about consumers and businesses As a result, data security is a serious problem that requires constant improvement could lose all data Walmart invests up to $400 million annually in securing data and enhancing security measures.
● System availability: Walmart's systems must function efficiently and dependably to manage ordering, administration, and inventory concerns with millions of customers every day and thousands of staff worldwide either sales or warehousing management.
● Support emerging technologies: In order to satisfy consumer demand,
Walmart must develop cutting-edge products This presents a challenge for creating, putting into practice, and optimizing new technology to satisfy Walmart's business needs.
2.2.2 The challenge of digital innovation:
Walmart has made numerous efforts to improve its digital capabilities by creating automation solutions for its distribution centers and utilizing artificial intelligence to optimize its storage system Walmart will still need to innovate and create fresh digital solutions due to the fast-paced changes in the digital economy and technology.
● Investment costs for digital innovation: Walmart must invest significant sums of money to develop and execute cutting-edge technology like artificial intelligence, user interfaces, and data analytics Between 2021 and
2022, Walmart plans to invest up to $11 billion in digital innovation - Walmart reportedly invests $2.5 billion annually in technology and innovation, according to public records.
● It can be challenging to merge outdated systems with cutting-edge technology: Because Walmart has so many established business practices, implementing new technologies can be difficult and time-consuming.
● Continuous innovation: Walmart must always innovate to suit customer expectations This includes keeping up with the market and technical advancements Keeping the business innovative is a difficult task.
2.2.3 Problems promoting internet purchasing present include
In essence, Walmart is no longer the market leader in the retail sector, but they are still dealing with a long-standing issue with rising sales influence profitable and vice versa This makes it more difficult for Walmart, which is up against tough competition from other retailers In particular, the repression before the emergence of e-commerce behemoths like Amazon or Alibaba, because before the changes of the retail market, the strategy of Amazon and Alibaba still has more advantages.
2.2.4 Challenges with Walmart's Security and Privacy
It's critical to protect consumers' personal information because Walmart has access to a lot of customer data, including account and payment information. Walmart may lose credibility and consumers' trust, which may result in lost sales and revenues if customer data is stolen or revealed.
To comply with data protection regulations and ensure customer trust, Walmart must prioritize data security Robust security measures safeguard personal information, bank account details, and shipping addresses collected by the company This includes data encryption, access control, and regular security audits to prevent unauthorized access and protect customer privacy.
● Information security: In order to prevent data leakage or illegal activities like identity theft or the misuse of financial information, Walmart must guarantee the security of their customer and account information.
● Sharing of Information Is Required: In order to offer customers better service or shopping options, Walmart may share customer information with its business partners Walmart must do this while collaborating with partners to protect customer privacy and safeguard information.
● Activities involving third parties: Walmart collaborates with them to create and implement services, putting customers' data security and privacy at risk.
● Law and regulations: Walmart is expected to abide by all applicable laws and regulations relating to data security and privacy, including the GDPR and CCPA.
Consumers' purchasing preferences have changed as a result of Walmart's low prices, but now they take more into account before making a purchase Before making a purchase, consumers prefer to use their cell phones to compare prices and have higher expectations for mobility and convenience It appears that Walmart has been reluctant to adapt to these developments, making it more difficult for them to contact customers These call for an increased concentration on digital technology.
2.2.6 Changing demographics and the expansion of e-commerce
For retail companies like Walmart, GenYs—also referred to as millennials— who were born between 1981 and 1996—represent the most significant customer segment The expectations of GenY are substantially different from those of other generations Generation Y is more technologically proficient and has a digital lifestyle They enjoy buying goods and services online Walmart's conventional operating model is unable to meet the expanding needs of customers in the US as the retail market changes Walmart must switch to a new model that can manage things more quickly and effectively Especially now that the e-commerce industry is expanding and building ingenious online stores that draw more customers than Walmart's enormous showrooms.
2.2.7 Failing to maintain the brand's reputation
A slew of revelations regarding irregularities in employee pay to bribes in Mexico, China, India, and Brazil have damaged the company's reputation in the eyes of customers The corporation has yet to take many steps to reduce this media influence in the meantime, which has complicated recent sales growth in the US market.
Walmart has been using the same technique for more than 50 years, but it needs to be updated because it is no longer effective Input costs have always been a factor in Walmart's growth and profitability through its large volume, low-price offerings Price advantage still draws buyers, but during the past ten years, its influence has diminished The primary factor is that numerous sizable retail businesses have increased their business operations and opened more branches,giving consumers more choices than Walmart.
Solution/ Recommendation
2.3.1 Improvements in Data Analytics and Information Management
Data analytics is a crucial link that transforms raw data into valuable information to interpret or solve a specific problem This process includes various tools, technologies, and processes applied to explore, process, and extract information from data Data analytics helps businesses optimize their operations by relying on real data as a basis for every decision It is also the 'foundation' that supports business analytics efforts From there, it helps businesses understand the operational context of the business, the causes of the issues the business faces, predict some issues and forecast these issues beforehand.
As a retail business, Walmart needs to perform data analysis to gain a better understanding of its customers, their needs, and the market to formulate effective business strategies For example, Walmart can apply data analytics in the following activities:
1 Customer data analysis: Analyzing customer information such as shopping and product behavior helps businesses understand customer needs and design appropriate business strategies for that customer segment.
2 Product data analysis: Analyzing data on product sales, pricing, and other information helps businesses understand market opportunities and challenges and make decisions regarding suitable products to compete effectively.
3 Inventory data analysis: Analyzing data on products and product forms in warehouses helps businesses manage inventory effectively, ensuring a balance between supply and demand, and developing strategies to minimize waste.
4 Sales data analysis: Analyzing sales transaction data helps businesses understand customer shopping trends, thereby developing strategies to deliver products through the right distribution channels and appropriate marketing campaigns.
5 Pricing data analysis: Analyzing pricing data and pricing strategies helps businesses understand competitors and decide on suitable prices for the market.
With the enormous amount of data and information that Walmart has, managing and analyzing it efficiently is not an easy task Therefore, Walmart can invest in developing technologies such as:
1 Mupd8: Mupd8 allows Walmart to aggregate data from various sources, including sales systems, inventory systems, and store websites These data are integrated, processed, and analyzed to provide Walmart employees with accurate information about retail store business operations.
2 Big Data technology: Big Data is processed using technologies such asApache Hadoop, Apache Spark, and Storm for business data analysis Big
Data technology allows the analysis and exploitation of large and complex data to create useful information.
3 Hadoop: Apache Hadoop is an open-source platform designed to store, process, and analyze structured and unstructured big data Tools such as MapReduce, Hadoop Distributed File System (HDFS), and HBase are used in Hadoop to analyze and manage data.
4 CRM tools: CRM, short for "Customer Relationship Management," is a customer relationship management tool It is software or a customer management system that helps organizations and businesses manage customer information, interact with customers, and manage customer relationships CRM provides a comprehensive approach to information for businesses, allowing them to organize and manage customer information, sales and marketing activities It helps minimize manual work, improves efficiency, and accuracy of sales and marketing activities.
5 Social Media Analytics: is the process of collecting, analyzing, and evaluating information from social media channels such as Facebook, Instagram, Twitter, LinkedIn, YouTube, and other platforms It is used to measure social media, understand customer behavior on social media, and measure the effectiveness of social media marketing campaigns.
6 Blockchain: is a technology that stores and transmits information securely and reliably It consists of a chain of data blocks stored on various devices and managed by a decentralized network, without a single centralized management center Blockchain is used to perform transactions and prove the origin and accuracy of information.
2.3.2 Develop Automation and Use Artificial Intelligence in Business
Automation employs tools and techniques to automate processes and tasks across industries, reducing human intervention and streamlining production processes or work These tools encompass software, robots, and digital devices Within Walmart, automation enhances efficiency and cost-effectiveness by eliminating unnecessary manual tasks and optimizing operational processes related to order management and inventory management.
Artificial intelligence (AI) is having a significant impact on the retail industry.
AI applications in retail not only help enhance customer experience, but also improve business efficiency Walmart can apply some of the benefits of artificial intelligence to business operations, including:
1 Enhance customer experience: AI can be used to analyze customer behavior and preferences from collected data, thereby suggesting and personalizing products, services, and content to enhance the personal experience for each customer.
2 Optimize inventory management: AI can analyze data to predict customer buying trends and needs, thereby developing automatic ordering models and efficient inventory management This helps reduce excess or insufficient inventory levels, while increasing sales and improving retailer efficiency.
3 Automated customer service: AI can be used to develop chatbots or virtual assistants to assist customers in information retrieval, purchase assistance, and problem-solving This reduces waiting time and enhances customer satisfaction.
4 Data analysis and product recommendations: AI has the ability to analyze customer data and provide suitable product recommendations This helps increase sales revenue, recommend complementary products, and increase customer interaction with the retail app.
5 Fraud detection: AI can be used to monitor and detect fraudulent behavior in transactions, thereby reducing risks and damages caused by fraud.
Thanks to artificial intelligence, Walmart can leverage data and technology to enhance customer experience, optimize operational processes, and increase business efficiency.
In the retail industry, information security is critical because retail stores often hold personal information of customers such as name, address, phone number, email, and payment account information Information security is to ensure the privacy and security of customer information, financial information, and other important information If customer information is leaked or stolen, the retail store will lose the trust of customers and may face legal issues One mistake in this matter can cause damage to the reputation, property, and operations of an organization or business.
Walmart, as a leading global retailer, faces significant security challenges due to its vast and intricate data landscape Consequently, enhancing their security posture is paramount This can be achieved through the adoption of advanced digital technologies, such as cloud computing, blockchain, and artificial intelligence.
Implementation
Planning
The transformation must take place strongly at all stages of supply and sales. The goal by 2025 is to transform the company from a traditional retailer into the world's largest innovative and innovative technology company.
Walmart's digital transformation strategy must be customer-centric Walmart's technology investments are all aimed at making shopping more convenient and easier for customers, increasing customer satisfaction, and improving the overall shopping experience.
Overcome the limitations in the business model, solve the difficulties encountered, increase competitiveness and develop the brand on a global scale. Main tools: achievements in science and technology, Robot - artificial intelligence, Big data, cloud computing Etc
3.1.2 Detailed plan for each challenge
3.1.2.1 Big data analysis and application of new technologies in information management
Big Data, characterized by its immense size and complexity, presents challenges for traditional data processing methods However, this wealth of data offers opportunities for businesses to extract valuable insights By harnessing Big Data, companies can optimize processes, understand customers, and adapt to the digital landscape Walmart, facing the challenges posed by Industry 4.0, has recognized the potential of Big Data to drive its business forward.
With such a massive amount of data, it is not easy to transform data from its raw form into usable data It involves many relatively complex processes such as collecting, sifting data, analyzing, classifying, and synthesizing it into easy-to-use categories It can be said that data analysis plays a very important role in the business process No matter in any field or industry, Data Analytics is required in planning and strategic planning.
Second, the Hadoop application supports data analytics to process and work with huge amounts of data in Petabytes Hadoop is an open source Apache framework that allows the development of distributed applications (distributed processing) to store and manage large data sets Hadoop implements the MapReduce model, where the application is broken down into different shards that are run in parallel on many different nodes Hadoop is written in Java but still supports C++, Python, Perl by streaming mechanism Processing in a distributed environment, data stored in many different hardware, requires synchronous processing.
Thus, the application of big data analysis and the application of supporting technologies makes it easier for Walmart to use the huge amount of data collected from customers to analyze and transform into important information for solve related problems.
✔ Mobile Big Data Analysis Methods
✔ First Applications Using Hadoop Data at Walmart
3.1.2.2 Invest in Blockchain and analyze Big data on social networks to improve service quality and Marketing strategy
Firstly, consumers' awareness of product safety is increasing Accordingly, they have a need for traceability for the goods they want to consume Therefore, it is inevitable that Walmart provides detailed information about the links in the supply cycle and authenticates that information, and the tool to do this is the application of blockchain to supply chain management Research on blockchain revenue by industry 2017-2025 shows that after the financial industry, companies in the manufacturing sector are tending to invest in this technology, especially food companies Blockchain can help reduce the pressure of regulations, policies and requirements on food safety for these businesses In particular, traceability is considered the key to solving the above problems Blockchain is a form of distributed ledger that helps solve a long-standing headache for businesses: trust. Simply put, it is a ledger that records transactions That is to say, it includes all the data shared, authenticated and encrypted by the components in the chain.
Making all transactions in the network public – the essence of blockchain is to help create trust among consumers That is the greatest value that manufacturers aim for In a blockchain network, all members of the chain can see and authenticate information at any time From there, Walmart can save costs and reduce pressure on manufacturers to prove the origin of products In order for this verification to work, the bank, its subsidiaries as well as the partners involved in the production process need to verify the information for transactions in the chain Build customer trust, improve service quality and develop long-term brand image.
Data analytics plays a significant role in marketing, transforming it from a purely creative domain to one heavily reliant on data By analyzing data, marketing teams can evaluate the impact of campaigns, optimize investment decisions, and precisely identify target customers Demographic analysis, customer segmentation, and association techniques enable marketers to leverage vast consumer data to understand consumer preferences, predict demand, and tailor marketing strategies accordingly Digital advertising platforms, in particular, rely heavily on data analytics for decision-making, shaping the allocation of marketing touchpoints and overall campaign effectiveness.
The statistical data of business, revenue, profit, operating process; the indicators of corporate financial statements, loans, costs for each core process of the campaign will help Walmart track and evaluate whether a marketing campaign will track how many people, calculate conversions in the process Which campaign's customer process is the highest, the percentage of customers coming from Digital Marketing channels.
The data related to services and products will help Walmart realize with the product lines they offer what is the best-selling item, the slowest-selling item, and what are the strengths and weaknesses in the strategy Walmart products are based on detailed tables, diagrams, and images from raw data.
These types of data tell a lot about Walmart's customers, which audience files potential customers must focus on to increase brand awareness and drive conversions in them Where are the non-potential customers that should not allocate their own resources too much Analyzing data about their demographics, ages, genders, interests, habits, concerns, will help Walmart draw a more realistic portrait of its target customers from which to build : What are their media campaign goals, what are their customer-reaching platforms, what are the goals Walmart wants from them?
If it is said that Marketing and improving service quality is the way to helpWalmart affirm its brand and value in the minds of customers, the application ofData Analyst and blockchain is the most effective means to help Walmart conquer the road there Therefore, below is a feasible plan and a methodical implementation plan proposed for Walmart at this time.
✔ Consumers in the production department
✔ Big data solutions on social networks
✔ Invest in blockchain in the food supply chain
3.1.2.3 Development of automation and use of Robot - artificial intelligence
With an increasing number of customers, it is not easy to find quality human resources who can fully meet the needs of customers Using that same human resource to train experienced employees who are working for the company into a high-quality and experienced employee, you can combine the use of AI virtual assistants to support them Consulting assistants in new applications and in-store should also prepare an intelligent robot to serve customers For example, that robot will simply greet customers if they have a need, inquire about their needs and advise and direct customers to the appropriate stalls.
Implementing
3.2.1.1 Big data analysis and application of new technology in information management
Walmart developed MuPD8 for Fast Data to build a general-purpose real-time stream processing platform that can address issues such as performance and scalability, etc With Muppd8, stream processing applications can emphasize the quality of the generated data Muppd8 makes data fast, hadoop compute model mapreduce do for big data.
Mupt8 streamlines application development, enabling programmers to leverage the Update Map framework, simplifying the computation of transmissions By combining custom map and update operators, developers can prioritize their application's business logic, entrusting Mupt8 with the efficient data processing across CPU cores This innovative approach empowers developers to focus their expertise on application functionality, while benefiting from Mupt8's expertise in data management and distribution.
For example, an application can be written to register the Twitter firehose of every tweet written; One such application could analyze tweets to identify the most influential users on Twitter or identify events that stand out as suddenly as they happen Alternatively, an application can be written to log all user activity on a Web site; Such an application can detect service issues encountered by users as they occur, or calculate recommendations for the user's next steps based on update activity.
Walmart CEO Bill Simon said that their data aggregation capabilities are unmatched
Walmart leverages data mining to identify patterns in point-of-sale data, enabling them to derive actionable insights By identifying product purchases that frequently occur together or precede specific purchases, Walmart can provide personalized product recommendations to enhance conversions One notable example is the surge in strawberry tart sales before hurricanes, detected through data mining, leading to strategic placement at checkout counters prior to storms Real-time data analysis also aided in resolving a sales anomaly during Halloween, revealing an inventory issue that was promptly rectified to prevent further revenue loss.
Walmart tracks and targets each individual consumer Walmart has the complete customer data of nearly 145 million Americans, of which 60% are US adults Walmart collects information about what customers buy, where they live,and what products they buy like via Wifi at the store The big data team at WalmartLabs analyzes every action that can be taken on Walmart.com — including what consumers buy in-store and online, trends on social media, local events, weather changes etc Millions of customers enjoy a personalized shopping experience.
Step 3: Mobile big data analysis method:
According to Deloitte, mobile-influenced offline sales are predicted to reach
$700 billion by the end of 2016 Walmart is harnessing the power of big data to drive tools and services aimed at helping Execute your mobile strategy.
More than half of Walmart's customers use Smartphones, and among these 35% of shoppers are adults, representing almost three-quarters of all Walmart customers Mobile customers are extremely important to Walmart as smartphone shoppers make 4 more trips and spend 77% more in-store As a result, mobile users account for 1/3 of Walmart traffic annually, and about 40% during the holidays.
“E-commerce is closely related to mobile purchases The world's largest retailer will use big data to enhance the in-store consumer shopping experience."
“Our mobile strategy is both simple and bold We want to make mobile tools indispensable for our customers as they shop in our stores and online “Retailing will improve each customer’s personalized experience” to compete in the future, and all of this will happen, said Gib Thomas, Senior Vice President of Mobile and Digital at Walmart out on the small screen in their hands.”
By harnessing the power of big data analytics, Walmart's mobile app offers a seamless shopping experience The app analyzes customer shopping history and identifies trends, enabling it to create personalized shopping lists Additionally, it provides tailored recommendations and exclusive discounts on similar items found on Walmart.com, making it a valuable resource for customers seeking convenience and savings.
Another way to harness the power of big data analytics that Walmart is adopting is to leverage real-time analytics — when customers shop Walmart stores. The geolocation feature of Walmart's mobile app will sense whenever a user enters a Walmart store in the United States The app asks the user to enter “Store Mode”. The mobile app's store mode helps users scan QE codes to get discounts and special offers on the products they want to buy.
Step 4: First applications using Hadoop data at Walmart:
Savings Catcher: An app that notifies customers whenever Walmart offers a discount on an item a customer has recently purchased The app then sends the gift voucher to the customer to cover the price difference. eReceipts App: provides customers with electronic copies of their purchases.
Walmart leverages Hadoop technology to power its mapping application, which provides highly detailed maps of its global network of 1000+ stores These maps, updated in real-time, enable customers to identify the precise location of even the smallest items, such as a bar of soap, within the vast expanse of Walmart stores.
Firstly, when using Mupd8, Walmart may face some risks, including:
1 System errors: Mupd8 may encounter system errors, interrupting the process of updating product information and affecting Walmart's sales operations.
2 Inaccurate information: If suppliers provide incomplete or inaccurate information in Mupd8, it will lead to inaccurate product information on Walmart's website This can make it difficult for customers to find and purchase products.
3 Data loss: If the data stored in Mupd8 is lost, it can be a serious problem for suppliers and Walmart Suppliers may lose important information about their products and Walmart may suffer losses in sales.
4 Hacking and intrusions: If hackers or individuals intrude and steal important product information from Mupd8, there is a risk of counterfeit or damaged products being sold on Walmart's website.
5 Competition: Competition among suppliers on Mupd8 can lead to incomplete and inaccurate product information This can lead to customers losing confidence in the products on Walmart's website.
Secondly, data mining at Walmart may encounter some risks as follows:
1 Privacy violations: Collecting Walmart's customer data may violate customer privacy rights If Walmart fails to comply with privacy protection regulations for their customers' data, they may face censorship or heavy fines from governments or privacy advocacy organizations.
2 Copyright infringement: Mining data from Walmart's suppliers or other websites may infringe upon the copyright of the owners If Walmart does not take care to ensure that they are using data that is legally allowed and not infringing upon copyright, they may face significant copyright litigation.
Solution Evaluation
Evaluate and control the solution
4.1.1 Innovative solutions in data analysis and information management
➢ Enhanced data management: Walmart is now able to manage enormous amounts of data and do analyses with efficiency thanks to the creative solution. Walmart claims to be in charge of more than 210 petabytes of data This enables Walmart to gather data on consumers, offers, products, and many other business-related topics in order to develop wise business decisions and plans.
Walmart revolutionizes data analysis efficiency by leveraging cutting-edge technologies such as Hadoop, Spark, and Hive These tools empower the company to process and analyze vast volumes of eCommerce transactions (hundreds of millions daily) at unprecedented speeds This optimization enables Walmart to quickly derive actionable insights from real-time data, facilitating the formulation of agile business solutions based on accurate and insightful data analytics.
❖ Time spent on data analysis is cut by 50–70% compared to before using the creative solution.
❖ Decision-making time is shorter now, dropping from 3-6 months to 2-4 weeks, a reduction of up to 90% from previously.
❖ Up to 95% fewer errors in data analysis.
➢ Enhanced adaptability and precision: Walmart can access data at any time and from any location thanks to cloud computing and data analytics capabilities.This provides managers and staff with a great deal of freedom, enabling them to rapidly and precisely access and evaluate the information they require.
➢ Better risk response: Walmart has increased its capacity to handle data risks like loss and theft by implementing cutting-edge technology and security solutions like blockchain and artificial intelligence As an illustration, the usage of artificial intelligence has helped Walmart detect and block fraudulent transactions on the payment system.
Example: The advantages of innovation in data analysis and information management are shown below:
❖ Analyzing customer data: Businesses can better understand customer wants and create customer-friendly company strategies by analyzing customer data such as shopping and product behavior.
➔ Description: Walmart monitors and targets specific customers 60% of the almost 145 million Americans in Walmart's database are adults in the
US Through in-store Wi-Fi, Walmart gathers data on what customers buy, where they live, and which products they prefer The data team at Walmart Labs examines every clicking activity on Walmart.com, including what customers buy both in-person and online, what's popular on Twitter, local events like the World Series victory of the San Francisco Giants, how changes in local weather affect purchasing trends, and more millions of customers to enjoy a personalized shopping experience.
❖ Product Data Analytics: Analyzing data on product sales, pricing, and other information helps companies better understand market opportunities and problems and decide which products to offer effective rivalry.
➔ Description: Walmart launches a new product Walmart uses social media data to identify popular products so that it can suggest them to its stores all around the world Walmart, for instance, looked examined social media data to determine whether customers were interested in
"Cake Pops." at the response to this data study, Walmart acted quickly, and Cake Pops are now sold at Walmart stores.
❖ Warehouse data analysis: By analyzing data about the goods and product forms that are on hand, firms may manage inventory more effectively, make sure that supply and demand are balanced, and come up with mitigation plans waste.
➔ Contribute to Walmart's inventory production optimization and 13% reduction in inventory expenditures.
➔ Walmart experienced an increase in revenue of $2.1 billion annually. Objectives In 2019, lower the inventory error factor to 53%.
➔ Improve customer service by streamlining the shipping process and cutting response times from two days to 90.
❖ Analysis of sales data: By better understanding consumer shopping patterns, firms are better able to plan how to distribute their products through the most effective channels the right marketing translation.
❖ Pricing data analysis: Analysis of pricing information and pricing tactics aids firms in better understanding rivals and establishing price that is appropriate for the market.
➔ Description: Walmart has gathered and analyzed information about product pricing and sales using data analytics and information management systems With the use of this solution, Walmart is better able to determine the expenses and prices of products, making pricing selections for those products more rational and competitive Walmart increased product-related revenues as a result, reaching $3.7 billion in
2019 Additionally, Walmart raised prices for online goods, which aided in the growth of its online sales up to 43% in 2020.
➢ Investment costs: Large infrastructure and technological investments are necessary for the deployment of novel solutions Walmart doesn't provide particular figures, but investing in system upgrades, data analytics software, and staff development all has a significant financial impact Small and medium enterprises may find this to be a hurdle.
➢ Employee Training: Walmart had to provide staff with the appropriate training in order for them to successfully use data analytics and information management technology This could take a lot of time and money It can be challenging to train thousands of people, especially when a corporation is as big as Walmart.
➢ Data security risks: Ensuring security is one of the main difficulties in data management Although Walmart has implemented cutting-edge technology and security measures, there are still hazards to data security Protecting sensitive data and client information becomes more difficult and calls for extra care when managing hundreds of petabytes of data.
System complexity is likely to rise with advancements in information management and data analysis.* Deploying and managing distributed systems that connect to various tools and services requires thorough planning and expertise.
● To control the operation of projects, Walmart applies the following control software:
❖ Project management software: Jira Software or Microsoft Project are popular project management software used by Walmart They support effective teamwork by planning the next steps, tracking project progress, and prioritizing key project activities.
Walmart leverages Jira Software as a pivotal tool for project tracking and management This comprehensive program streamlines task coordination, ensuring efficient project progress monitoring Jira Software's integration capabilities with external systems, such as Email and Excel, empower Walmart teams to enhance productivity and safeguard timely project completion.
➢ Microsoft Project Software: Microsoft Project Software will help
Walmart make sure that its strategies are implemented more efficiently and coherently thanks to its prediction and hedging features, summary reporting, and records management.
Valuation and capital recovery
Adopting digital transformation can help Walmart improve business processes, increase profits, and save a lot of costs
Innovative solutions in data analysis and information management
- Reduce data processing and reporting time, quickly come up with business solutions Thereby saving costs, time and human resources in collecting, analyzing and processing necessary information.
- Operation and management costs are more economical than traditional methods.
- Ability to access data from anywhere and at any time This offers flexibility, shortens work time and increases accuracy.
Solutions to develop automation and use artificial intelligence in business activities
- Automated systems in warehouses and manufacturing plants, helping to increase productivity and efficiency Minimize labor costs and replace with machines.
- Analyze data to predict purchasing trends and customer needs Thereby avoiding wasteful investment in items and products with no prospects.
- Walmart says it has achieved a reduction in delivery costs with employees from $7.50 to $1 after rolling out its robotic delivery service.
Solutions to strengthen the information security system
- Invest in attack detection protection technology to quickly detect breaches to minimize damage, save costs and human resources compared to traditional security network operations.
- Quick recovery after an attack occurs to minimize the impact
Therefore, the recovery of capital for Walmart's digital transformation plans is completely possible and highly effective if applied.
In the short term, the application of digital transformation helps Walmart save costs, improve business efficiency, and improve production, transportation and marketing processes Customers are served quickly, more conscientiously, and the shopping experience is significantly improved.
In the long term, when successfully applying digital transformation, it will give customers a positive and comfortable view, boosting revenue The business develops in a sustainable way, builds and successfully promotes the brand in the market.
Walmart Canvas model after digital transformation
Key Partnerships Key Activities Value Propositions
Leading technology companies like Facebook,
Google, Cisco, Microsoft, and IBM are deploying cutting-edge digital solutions. utilizing reputable international shipping partners like UPS, FedEx, and DHL to guarantee product arrival.
Importing products, shipping, managing warehouses and stores, hiring and training employees.
Utilize cutting-edge technologies like blockchain, cloud, AI, and the Internet of things (IoT) to manage supply chains, deliver value to customers, and streamline business operations.
Customers' spending habits shift from conventional to modern at the same time. pursuing the objective of discovering a remedy for dark software
It is ideal to aid in boosting productivity so that they can manage more effectively.
Customer Relationships Customer Segment Key Resources
Increase customer engagement on social media channels and other online platforms.
Provide customers with convenient and professional customer services
Customers need to shop efficiently with competitive pricing policies and shop in bulk.
Elderly people care about useful products for health.
Finance: R&D investment fund, respectable major investors including Microsoft, Google, JD.com, etc
More than 11,000 retail establishments exist worldwide.
Human Resources: There are more than 2.3 million full-time employees worldwide.
Channels Cost Structure Revenue Streams
Technology research and development costs
Cost of customer information security Store operating costs Transportation costs Management costs Marketing costs Financial expenses
In the fiscal year 2020, internet retail sales climbed by 97%.
Home delivery revenue,growing customer base,and new product lines
Return on Investment/Valuation
Walmart's efforts to predict consumer demand and plan its inventory accordingly have been facilitated by the digital transformation, which has helped reduce excess inventory and minimize waste Digital payment methods have boosted transaction speed and security, which has increased client retention.
In conclusion, Walmart's digital transformation is a game-changer and can yield a sizable Return on Investment (ROI) through the measures listed below. Numerous corporate procedures have been automated, which has lowered labor costs while increasing income through better client experiences and personalized services.
The following section summarizes the details of Walmart Inc.'s Return on Investment.
● Walmart's return on invested capital in the last 12 months is 11.7%
● Walmart's return on invested capital for the financial years ending January
● Walmart operated with an average return on investment of 11.4% from the fiscal year ending January 2019 to 2023.
● Looking back over the past five years, Walmart's return on investment peaked in January 2022 at 13.0%.
● Walmart's return on invested capital hit a five-year low in January 2020 of 10.1 percent.
● Walmart's return on invested capital decreases in 2020 (10.1%, -11.3%) and
We have identified the following companies as similar to Walmart Inc. because they operate in the industry or related field We've also looked at size, growth, and different financial metrics to narrow the list down to those listed below. And from these we can see that Walmart compared to companies operating in the related field is quite high, just behind eBay inc and Macy's inc.
The US online retail market is dominated by 15 significant market participants As seen in the following graph, Amazon commands the US online retail market with a market share of 37.8%, followed by Walmart, Apple Inc., and eBay with market shares of 6.3%, 3.9%, and 3.5%, respectively.
Over the previous ten years, Walmart's sales have increased consistently year over year In 2021, it generated $572.75 billion in sales, a 7% increase over the previous year Based on revenue, it is among the top global retail brands The graph below displays its yearly sales over the previous ten years.
Walmart has experienced enormous development in recent years as a result of its digital transformation Walmart has effectively escaped from serious challenges during the 2008 economic crisis thanks to the use of digitization Walmart's revenue has climbed from $495 billion in 2018 to $510 billion in 2019 after just one year of digital transformation The total revenue of the entire system is increasingly being boosted by revenue from online orders, which in 2019 accounted for 8% of Walmart's overall sales According to the Fortune 500 2019 list, Walmart is now among the largest businesses in the world (measured by sales) As of April 2021, Walmart had a total of 10,526 locations operating in 24 countries under 48 different brands.
Walmart expects full-year earnings per share to range between $6.10 and
$6.20 versus a previous outlook of $5.90 to $6.05 Analysts estimate an average return of $6.16 per share, according to global financial data provider Refinitiv.
In addition, the group expects full-year net sales to increase by roughly 3.5%, which is higher than the previous estimate of 2.5% to 3%.
Operating income for the group increased by 17.3% in the first quarter, in part due to increased contributions from the businesses that provide shipping, fulfillment, and advertising services Walmart's adjusted earnings per share of $1.47 per share were higher than anticipated In the first quarter, net sales increased 7.6% to $152.30 billion, exceeding analysts' expectations of $148.76 billion.
Issues and concerns
The term "digital transformation" is frequently used to describe the process of moving from a traditional business model to an organization that relies on the use of cutting-edge technology like big data and the Internet of Things IoT), cloud computing aids in boosting operational effectiveness, and thus, the competitiveness of organizations and businesses is enhanced.
Businesses worldwide are embracing digital transformation to enhance their operations, leveraging its numerous benefits However, this transition can present challenges and concerns for organizations Walmart, for instance, encountered complexities in six key areas: infrastructure, data management, security, customer experience, employee adaptation, and organizational culture Addressing these aspects is crucial for businesses to successfully navigate the digital transformation journey.
➢ First, a comprehensive strategy with distinct transformational objectives The why, what, and how of the strategy are outlined in relation to particular, measurable business outcomes;
➢ Second, the CEO's commitment to middle management's leadership: High levels of dedication, alignment, and real accountability are present in the company's leadership, including middle management;
➢ Third, use top talent: To advance the digital transformation initiative, the Management Board identifies and fully utilizes the most competent resources;
➢ Fourth, an agile management attitude encourages wider adoption: Leaders quickly remove obstacles, adjust to shifting settings, and promote cross- functional, task-oriented behavior change across the entire organization. They manage particular difficulties without losing sight of bigger objectives;
➢ The organization develops clear indicators and goals around processes and results, with adequate data availability and quality; Fifth, effectively track progress towards stated results.
➢ Sixth, tailoring data platform and technology design to business requirements The business provides a cutting-edge, functional technological architecture that is motivated by business requirements to ensure secure performance swift change deployment, security, scalability, and ecosystem integration.
In order to handle these six factors, businesses must fulfill two requirements:
❖ First, the leadership of an organization must make sure that the planning, preparation, and implementation appropriately handle each of the six aspects Although most businesses make a significant effort in this direction, most still don't adequately handle each element.
❖ Second, it's critical to handle each of the six factors Businesses and organizations that focus on just three or four criteria fail This six-factor combination had the greatest impact on the success of all the combinations that were looked at.
Future development
The process of "digital transformation" is one that takes time, and its main objectives are improving operational effectiveness, pleasing customers, and other related things is to establish and sustain a competitive advantage in the marketplace Digital transformation requires constant change from the smallest corner of the business, constantly trying new things and getting used to failure. Walmart anticipates achieving numerous successes with the aforementioned suggestions for digital transformation through "speaking" numbers Projects that use data analysis for product management and marketing, design websites for virtual reality, and employ intelligent robots to serve customers in-store are all examples of important digital transformation initiatives a business approach that works best for Walmart Walmart will continue to hold its market position over the next five to ten years thanks to its steady profit margins and the success of the digital revolution.
Walmart has leveraged its experience and strategic vision to grasp the ephemeral nature of scientific and technical services, mirroring the constant evolution of technology By recognizing the life cycle of their implemented services, Walmart adeptly plans for continuous growth, seamlessly adapts to emerging trends, and perpetually refines its digital transformation journey This understanding empowers Walmart to stay at the forefront of innovation, ensuring they continuously enhance customer experiences and drive business success.
Walmart has thus been able to overcome its own problems and take advantage of the chance to hold onto its market share in the extremely competitive business by implementing clever digital transformation solutions that Walmart enterprise.