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Walmart Industry Analysis: Conditions, climate, and competition of Walmart's industry and segment.

Walmart Industry Analysis: Conditions, climate, and competition of Walmart's industry and segment.

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Expert Solution

There is no end to the answers to such questions. I am putting together my thoughts. I will suggest you please digest them, put your own thoughts and create an answer out of this.

Conditions:

  • The retail industry is subjected to enormous competition - both in online as well offline format. Industry once dominated by retail player like Walmart has seen emergence of many players (some of them quite successful)
  • Limited growth potential in domestic space: Developed Countries are displaying marginal growth rates. USA alone is no longer good enough to meet the capital market aspirations of the companies. The firms are therefore going global.
  • Margins are narrowing down: this is creating pressure on retailers. It's such an industry where players like Walmart are just retailers. They don't add any value to the products. They are therefore realizing thin margins. The game is now of quantity.

Climate

  • Rising penetration of internet and smartphones are shifting the buying habits from offline mode to online mode.
  • Quality, consistency, reliability and dependability are the factors that will now lead the path to success for industry players
  • Stiff competition: the sector has seen emergence of plethora of online etailers
  • Intense working capital requirement.

Competition

  • Offline stores like D mart
  • Online players like Flipkart
  • Large format superstores
  • Small but large number of e-tailers

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