In: Finance
How attractive is the main sector in which Walmart competes (Hint: Market opportunity, growth, profitability, sustainability)? How has Walmart been impacted by U.S. trade relations?
Walmart operates into the sector which is completely retail and consumer oriented.Structures are not going to change for a long time as this will be related to consumers daily need and if it is able to retain its market share, it does not have to diversify much to operate for a few more decades without much change into its strategy.
this type of consumer oriented business does not demand much structural change as their related to the basic life of the consumers.in this type of businesses Walmart already became the largest player and it already have the largest Market, so it only has to keep the quality of a product on the higher side, so it does not lose its market.
There are several strategies through these companies can have long term efficiency like cutting and reduction of costs which are operational nature, it can also look for control over the forward supply chain as it is doing through the form of acquisition.
it has tried to control the supply chain through acquisition of the Indian consumer giant Flipkart which is specialised in door to door delivery hence it will be a boost for such businesses of Walmart because such company will help in delivering its day-to-day items to to the doorstep up of consumers.
Walmart has been impacted negatively through the US China trade relationship as this company is trying to enter into other Global Markets and if trade restrictions are going to be there it will halt its future prospects so it needs a high level of globalisation at it can't grow in the American markets because it already is in the maturity stage of its companies life cycle.