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1-2 Blog: Project Analysis

Jacob Wright

Southern New Hampshire University

BUS-400: Driving Business Opportunities

Professor Winkelhake

3 September 2023

Walmart Company Service Improvement

Walmart is among the world's retail corporations; that started in 1962 and has a head office in Bentonville, Arkansas. According to Pandey et al. (2021), Walmart runs various stores, including discount stores, grocery stores, and supercenters, providing highly affordable merchandise. The products offered include electronics, clothing, toys, automotive goods, and services such as tax preparation and pharmacies. Recently, the company launched the GoLocal service that uses drones to enhance the delivery of goods of all business sizes to customers.

As an innovative officer, the focus will be product assortment planning to improve service provision. It involves determining the types and number of products to offer, focusing on making decisions regarding the variety, service level, and depth of the Walmart product portfolio. These decisions will help during the economic downturn by enabling adaptations to various financial circumstances. At Walmart, there are so many levels of products; reducing them is the only way to increase sales.

Furthermore, to prevent the wastage of products, the invention of a company system will be necessary. The system will use radio frequency identification with the engine for prices for not less than 60 variables to calculate fees. Then, electronic shelf labeling will display costs in digital form. As a result, customers can choose food products nearing expiry at a low price.

The strategies will be efficient and fit into Walmart's core competencies. Thus, the company can improve service provision and get the upper hand over its competitors by utilizing these mechanisms. The critical aspect of this service is the ability to provide autonomy to customers in choosing whether or not they need to trade their money for the products.

Walmart Company Value Proposition

Walmart runs a variety of retail establishments, including supermarkets, hypermarkets, grocery stores, neighboring markets, and discount stores. According to Berneis and Winkler (2021), the value proposition includes service leadership, cost savings, dedication, and a focus on creative problem-solving. Hence, the organization possesses a distinct value proposition that aligns with its business principles. The value proposition involves offering customers diverse products at affordable prices and with enhanced convenience.

Walmart Profitability

Walmart provides a global platform for individuals to save money through retail and e-commerce options, allowing people to shop conveniently and at affordable prices. Integrating e-commerce into retail stores enhances customers' experience by introducing innovative solutions that save them time. Walmart can offer affordable prices to customers by effectively managing expenses and implementing cost-saving measures.

Over the past three years, Walmart has experienced an upward trend in its gross profit margins. It implies the revenue percentage that covers expenses such as operations. In addition, the company's operating profit margin has been on the increase since 2020 to date. In general, Walmart is a highly profitable company. According to an investigation by Alatrsh (2022), the company experienced an increase in profit from a total of $13.7 billion in 2021 to a whopping $13.9 billion in 2022.

SWOT Analysis Strengths

Walmart uses its competitive advantage to advance and dominate the retail industry. As the largest retailer in the world, the company has unmatched vibrant market power and operations compared to its competitors. As per the findings of Smith, J. (2019), it has been reported that Walmart holds the top position in terms of revenue and is also the leading private employer with a workforce of over 2.3 million employees. Walmart possesses another advantage in the form of its cost leadership strategy. Through manufacturing and selling commodities, the company benefits from economies of scale. The cost leadership strategy has made Walmart the world's largest retailer.

Product and Service Singularity

The success of Walmart lies in the strategy of Everyday Low Prices. The system has been in use since the company's inception, and it does not apply to other retail companies. The popularity of the EDLP strategy has led to increased customer attraction and a competitive edge for Walmart. Walmart implements cost-cutting measures to eliminate wasteful processes and unnecessary layers to uphold affordable prices and maintain a competitive edge. Furthermore, Walmart has emphasized effectively managing logistics and supply chain operations to minimize expenses and streamline processes, eliminating unnecessary delays.

New Service Projections

The implementation of the EDLP strategy by Walmart is predicted to result in a rise in the demand for product purchases. A competitive advantage can be gained when lower prices attract many people to make purchases. Furthermore, Walmart's customers will exhibit loyalty towards the company's services due to the affordable prices offered on high-quality products. Hence, consistent loyalty will result in elevated profits due to heightened purchasing levels. For example, implementing the approach will increase Walmart's profits from $13.9 billion in 2022 to approximately $14.1 billion in 2023.

References

Alatrsh, M. B. (2022). Portfolio Analysis Financial Statement of Walmart Inc.(WMT).  Available at SSRN 4092146.

Business Strategy Hub. (2020). SWOT analysis for Walmart – Google Search. Www.google.com. https://www.google.com/search?q=SWOT+analysis+for+Walmart&sxsrf=ALiCzsacQJrtauwImYN8CXjrQdUgspQVJQ:1666377891536&source=lnms&tbm=isch&sa=X&ved=2ahUKEwiu_6Sy_fH6AhXF2qQKHfDBAI4Q_AUoAXoECAIQAw&biw=1366&bih=657&dpr=1#imgrc=eBtx2Ou0Fdj2rM

Berneis, M., & Winkler, H. (2021). Value proposition assessment of blockchain technology for luxury, food, and healthcare supply chains.  Logistics,  5(4), 85.

Pandey, R., Dillip, D., Jayant, J., Vashishth, K., Nikhil, N., Qi, T. J., … & Qhi, L. Y. (2021). Factors Influencing Organization Success: A Case Study of Walmart.  International Journal of Tourism and hospitality in Asia Pasific (IJTHAP),  4(2), 112-123.

Smith, J. (2019). Big Box Supermarkets (Walmart Supercenters).  Increasing Access to Food: A Comprehensive Report on Food Supply Options, 5.

Appendix

SWOT Analysis

Strengths	Weaknesses
1 . Market Leader: Walmart is the world's largest retailer by revenue and operates in multiple countries, giving it a strong global presence.	1. Labor Issues: Walmart has faced criticism and legal challenges related to labor practices, including low wages and alleged mistreatment of workers.
2. Economies of Scale: The company's vast size allows it to achieve economies of scale, leading to lower costs and competitive pricing for customers.	2. E-commerce Competition: Walmart faces fierce competition from online retailers like Amazon, which has been rapidly growing in market share.
3. Diverse Product Portfolio: Walmart offers a wide range of products, from groceries to electronics, attracting a broad customer base.	3. Environmental Concerns: Environmental activists have raised concerns about Walmart's sustainability practices and its impact on the environment.
4. Supply Chain Efficiency: Walmart's supply chain management is known for its efficiency and innovation, helping reduce costs and improve inventory management.	4. International Challenges: Adapting to different international markets and regulations can be challenging and lead to operational difficulties.

Opportunities	Threats
1. E-commerce Growth: Walmart can continue to expand its e-commerce presence to capture a growing online shopping market.	1. Online Retail Competition: Intense competition from online giants like Amazon and Alibaba poses a threat to Walmart's market share and profitability.
2. International Expansion: There are opportunities for Walmart to enter or expand further into emerging markets, such as India and China.	2. Changing Consumer Preferences: Consumer preferences are evolving, and if Walmart fails to adapt, it may lose customers to more innovative competitors.
3. Health and Wellness: The demand for health and wellness products and services presents opportunities for Walmart to diversify its offerings.	3. Regulatory Changes: Changes in regulations and government policies can impact Walmart's operations and profitability, especially in the healthcare and retail sectors.
4. Sustainability Initiatives: By investing in sustainability and responsible business practices, Walmart can enhance its reputation and attract environmentally conscious customers.	4. Supply Chain Disruptions: Events like natural disasters, trade disputes, or global pandemics can disrupt Walmart's supply chain and operations.

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PROJECT OUTLINE for Product Assortment Planning for Walmart 3

Project Outline: Product Assortment Planning for Walmart

Jacob Wright

Southern New Hampshire University

BUS-400: Driving Business Opportunities

Professor Winkelhake

10 September 2023

PROJECT OUTLINE for Product Assortment Planning for Walmart 1

About Product Assortment Planning

Walmart is famous for its broad range of goods and services. To improve service quality and market leadership, the organization must optimize its product assortment approach. This initiative seeks to improve Walmart's product assortment planning, which carefully selects quantities of products for customers. The goal is to personalize shopping to enhance sales and profitability. This program supports Walmart's commitment to continual development and customer-centricity in the changing retail market.

Goals

· To simplify and improve the product selection offered in Walmart stores, online, and through the newly introduced delivery services.

· To do this by providing a well-selected range of items that are tailored to the requirements of the target audience.

· To adjust to the ever-shifting economic conditions and to enhance overall financial performance.

Target Customer

The intended consumer base for this project is purposely broad and diversified, including customers with different interests and demands. Walmart knows it must appeal to this varied clientele with its product range. Targeted client segments:

Budget-Conscious Consumers: Walmart is known for inexpensive daily things. This initiative aims to improve shopping for budget-conscious families and individuals. Value-driven shoppers want a broad selection at low costs (Van Loo & Aggarwal, 2023). Walmart wants to remain the budget-conscious customers' first option by refining its product range.

Families: Families searching for one-stop shopping have always favored Walmart. Families trust Walmart to effectively satisfy their grocery, housekeeping, clothes, and other purchasing requirements. This initiative understands the significance of catering to families by offering a wide range of products that ease shopping and enhance the experience.

Tech-Savvy Shoppers: Tech-savvy shoppers want ease and innovation in the digital world. Walmart's GoLocal drone delivery and online shopping alternatives attempt to attract this sector (Staff, 2023). This tech-savvy client base appreciates smooth digital interactions, and the initiative keeps Walmart ahead of its changing expectations.

Value and Quality Seekers: A large chunk of the market buys value and quality. Walmart will prioritize high-quality, affordable items in its product assortment strategy. Walmart can attract value- and quality-conscious consumers by creating an inventory that meets their needs. Walmart's product assortment planning strives to create a shopping environment where everyone can discover items that meet their demands by deliberately addressing these varied consumer categories' wants and preferences. Inclusivity boosts sales, customer happiness, and market competition. Walmart's success in retail is based on providing a wide spectrum of consumers.

Market Opportunity

Walmart's large consumer base and worldwide reach make this project's market potential enticing. Several elements make this opportunity important. Internet shopping and drone deliveries are in high demand. Changing consumer patterns, spurred by COVID-19, have exacerbated this tendency (Alwan et al., 2023). Walmart can address this expanding demand and lead retail logistics technology by offering the GoLocal drone service. Consumer tastes and economic situations change, making retail a dynamic industry. Walmart's success will depend on its ability to adjust quickly. Walmart can adapt to market changes with this initiative, keeping it current and attractive to a varied client base.

Walmart has an edge in a competitive industry dominated by e-commerce companies due to its massive retail store network. These physical places may execute orders and engage with customers, providing convenience and tangibility. Walmart is strong because it competes with e-commerce titans while using its physical presence (Alwan et al., 2023). The project's emphasis on maximizing product selection and adapting it to consumer groups helps attract and keep customers. Walmart can increase consumer loyalty and stand out in a competitive market by personalizing and streamlining purchasing.

Financial Opportunity

This initiative gives Walmart several lucrative revenue potentials. Walmart may boost sales by tailoring its product range to meet client requirements. This personalized strategy should enhance sales and maintain growth. The initiative improves inventory management, reducing waste. By reducing overstocking and product obsolescence, Walmart can save expenses and boost profits (Walmart, 2022). A well-curated product range may increase client loyalty and repeat business. Happy consumers who discover what they need are more likely to purchase at Walmart again, providing a consistent cash stream (McLymore et al., 2022). The idea allows online and drone delivery businesses to grow with user preferences. This diversification may boost Walmart's earnings and present it as a retail innovation. This initiative aims to boost retail market share and competitiveness. While initial profitability may vary, better customer retention and operational efficiency are expected to provide significant financial benefits, making this initiative a critical investment in Walmart's future.

Timeline

Phase 2 (Months 4-6): Examine client preferences, market trends, and economic situations. Use insights to optimize product assortment.

Phase 2: (4-6 Months): RFID pricing engine and electronic shelf labeling minimize product waste and increase price transparency.

Phase 3 (Months 7-12): Launch GoLocal drone delivery for small and big companies with optimal product selection.

Phase 4 (13-18 Months): Use real-time data and consumer input to improve product selection. Walmart can react to market circumstances while preserving financial stability and consumer pleasure using this timeline's progressive, data-driven approach to change.

References

Alwan, S. Y., Hu, Y., Al Asbahi, A. A. M. H., Al Harazi, Y. K., & Al Harazi, A. K. (2023). Sustainable and resilient e-commerce under COVID-19 pandemic: a hybrid grey decision-making approach. Environmental Science and Pollution Research, 30, 47328–47348. https://doi.org/10.1007/s11356-023-25456-0

McLymore, A., Cavale, S., & McLymore, A. (2022, August 11). Focus: Inflation steers budget shoppers away from Walmart. Bringing them back may not be easy. Reuters. https://www.reuters.com/business/retail-consumer/walmarts-long-lasting-challenge-luring-budget-shoppers-back-its-stores-2022-08-11/

Staff, S. (2023). Walmart attracts budget-conscious customers, and remains strong in Q2. In Business Madison. https://www.ibmadison.com/walmart-attracts-budget-conscious-customers-remains-strong-in-q2/

Van Loo, R., & Aggarwal, N. (2023). Amazon’s Pricing Paradox. Social Science Research Network. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4436546

Walmart. (2022). Purpose. Corporate – US. https://corporate.walmart.com/purpose

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3-2 Milestone One Submission

Jacob Wright

Southern New Hampshire University

BUS-400: Driving Business Opportunities

Professor Winkelhake

16 September 2023

Introduction:

Ladies and gentlemen of the senior management group, I appreciate the opportunity to discuss an idea that holds great promise for the future of Walmart. Today, I will introduce our Product Assortment Optimization program to improve our product selection approach for our diverse consumer base. This project aligns seamlessly with our strategic plan and objectives.

How it fits:

Walmart's corporate strategy is based on customer-centricity and our objective to offer a wide range of high-quality products at low rates. A strategic synergy that promises to elevate our brand's retail excellence is created by the Product Assortment Optimization project's flawless integration with these guiding principles. This initiative provides as a timely and insightful response in a retail landscape characterized by dynamic transformations and the ever-evolving expectations of our varied client base. This strategy shift recognizes that adaptability and client responsiveness are key to our success. This effort enables us to customize our product range based on our customers' needs and preferences. It bolsters our mission while fortifying our agility in the ever-changing landscape of modern retail.

Speculation on Company Capabilities:

To embark on a project of this magnitude, we have diligently assessed our capabilities and affirmed our readiness to execute it with precision. Our exhaustive research, which drew insights from reputable sources such as Marketline.com, Yahoo Finance, and our investor relations pages, is the cornerstone of our confidence.

Our findings leave no room for doubt—this initiative is a seamless fit within Walmart's legacy of adaptability. We have thrived and excelled in navigating market shifts, and this project aligns perfectly with our proven ability to evolve with the times. Leveraging our formidable resources and unparalleled global reach, we stand uniquely equipped to address the ever-evolving demands of our diverse customer base.

Our ability to harmonize our extensive physical presence with cutting-edge digital solutions truly sets us apart. This distinctive capability positions us as a leader and a trailblazer in the fiercely competitive retail landscape.

Justification:

We anticipate this initiative will result in a substantial annual revenue gain for Walmart. Based on our projections and market analysis, we estimate an additional $2.5 billion in annual revenue due to the optimized product assortment. This figure is derived from the expected increase in sales, particularly in high-demand product categories. The revenue gain that we anticipate stems from several key drivers. Firstly, offering a more personalized and curated product assortment will enhance customer satisfaction and loyalty, ultimately driving sales growth. Secondly, our improved inventory management minimizes waste, reduces product obsolescence, and will lead to cost savings. These factors will contribute to an improved profitability outlook when combined with increased sales.

The return on investment (ROI) is a pivotal aspect of our justification, as it provides a concrete measure of the project's financial viability. While exact ROI figures will naturally evolve over the project's lifecycle, our preliminary estimates suggest an impressive 20& ROI potential over a conservative five-year period. We estimate an initial investment of $500 million required for the launch and implementation of the project. This projection is grounded in our analysis of anticipated outcomes, including increased sales, cost savings in inventory management, and improved supply chain efficiency resulting from the optimized product assortment planning. A 20% ROI over five years demonstrates a compelling business case for moving forward with the initiative, suggesting that the benefits will significantly outweigh the initial investment.

Enhancing the Mission:

This initiative projects profitability and directly enhances our company's overall mission. The Product Assortment Optimization project aligns with Walmart's mission to "save people money so they can live better." It achieves this by offering a wider range of quality products at affordable prices, enhancing the overall shopping experience for customers (Zacks Equity Research, 2023). Recent reports also demonstrate that our store renovations and smarter store initiatives have yielded robust comp sales, indicating profitability (Zacks Equity Research, 2023). This project reinforces our mission and ensures we meet customer needs while driving growth.

Conclusion:

In conclusion, Walmart's Product Assortment Optimization project aligns with our mission and strategy, leverages our strengths, and promises significant revenue benefits and ROI. It reinforces our customer-centric strategy and positions us for retail leadership. Our success depends on this initiative's focus on profitability and retail excellence. Thanks for your time, and I welcome questions and discussions regarding this exciting project.

Reference

Zacks Equity Research. (2023). Walmart (WMT) Continues to Stand Strong: Stock Up 20% in a Year. Yahoo Finance. https://finance.yahoo.com/news/walmart-wmt-continues-stand-strong-125700184.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAJcPCJPmZ-EnqMR4vA-0tN8N0s5tSTM37gR1NDSzQVgmIvwetPNIK9itRHeXxVJDEm115inmb4T9q6nZsf09XbEMrJsTWBULIHU3p-l3UxFbzbfpc77IQ13sR0D9nMC-263ZE09qbYgacLocYceLKYWfT4Ff134XASZkQJhzm7jc

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