In: Accounting
Analysis: 1. The transformation of Walmart from 2017 to 2018, and the financial risks in the future year. 2. How to deal with the problem that Walmart's transformation of e-commerce could not be noticed by all customers.
Actually Walmart has aquired one of the most trending E-commerce business organisation Flipkart.
Walmart is more popular all over the world than the Flipkart.
The risks are as follows:
1)The Chance of being not noticed by the customers that its branding name is Walmart
2)They have to advertise in such a way that it is marketed by Walmart.
3) people also get used to it when it is advertised by walmart.
4)Moreover advertising in the social Networking sites helps a lot in bringing awareness among the people
5)They can also get awareness by advertising the same in the way of press meets and So on.....
Financial Risks are as follows;
In the future years of its investment in Flipkart it maynot get profits due to other trending websites like Amazon
And Moreover due to extravagant discounts given by the e-commerce websites especially during the festival seasons(which are more in a country like India) it may get into the losses which as a whole may loose its reputation
On a final note it will a challenging game to the walmart by investing the amount in E-Commerce Business Organisations