Wal-Mart Global ECommerce Strategic



Introduction3

Research Question3

Organizational Goal and Mission3

Business Objectives4

Analysis of Stakeholders5

Corporate Governance6

External Environment Analysis9

Socio-cultural9

Global9

Technological9

Political/Legal9

Industry Environment10

Internal Environmental Analysis10

Wall-mart internal analysis.10

Wal-Mart's Capabilities13

The SWOT analysis of the retail giant16

Strengths16

Weaknesses18

Opportunities19

Threats21

Implementation Of Recommendations22

Organization structural change needed for implementing the recommendations22

References25

Wal-Mart Global ECommerce Strategic

Introduction

The world biggest name in the retail business is also the biggest and the fastest growing e commerce organization. Wal-Mart which is originally based in silicon valley, California and available from Brazil to India has its own global e-commerce unit which is taking care of all online and mobile innovations for Wal-Mart, this unit has the best and the brightest technologists including “@WalmartsLabs”.

Research Question

The research question of this report is

What is the impact of Wal-Mart's global e-commerce strategy on its traditional retail Business?

Below are some Global E-commerce strategies of Wal-Mart

Excel in the fundamentals of E-commerce

Innovate in new areas

Win in key markets

Unite and expand the Wal-Mart platform to do what no one else can do

Organizational Goal and Mission

The organizational goal of Wal-Mart is “becoming in an international brand”. The mission statement is “to help people save money so that they can live better” (Wal-Mart. 2013).

Business Objectives

Maximization of the shareholder wealth

The wealth maximizing goal of the shareholders is that the management should look for maximizing the present value of the future returns to the owners/ share holders of the firm. These returns can either be in form of periodic dividend payments or the proceedings from the stock. Business future is hard to predict that's why shareholder's wealth is evaluated through two different indicators. The share price trend and the historical dividend paid.

Maximization of the share price

For the long term stock holders the share price which the shareholder could get when the stock is traded out in the stock market is more important than the dividend received at the year end. Because of this approach it proved to be one of the companies who got out of the crisis faster than the others after a global financial crisis. This was reflected from 2009 to 2011 which showed the increase in the share price resulting in good news to the investors of the company. The earning for the investors pay off well if they invest in the beginning of such anticipated term.

Maximization of the dividend paid

For shareholders the dividend paid could be more exciting to the investors. The growth rate of the paid dividend from the 0.7 in 2008 to 1.08 in 2012 over the five year period is much higher than the EPS (earning per share) growth. This shows that for individual investors the company growth matters a lot as it's more benefitting to them as the more profits are paid to the investors.

Analysis of Stakeholders

For 2013, Wal-Mart has planned to serve more customers globally and put acceleration to the concept of anytime/anywhere access by introducing the best online, social and mobile capabilities. In his address to the Barclays consumer discretion and retailing conference, Wal-Mart's CEO looking after its global e-commerce division, revealed the highly anticipated move, the retail giant is ...