Walmart: Online Sales Challenges and Strategic Solutions Report

This report provides an analysis of Walmart's current online sales performance, identifying key challenges such as lagging online sales growth, stiff market competition, and evolving consumer preferences. The report utilizes strategic frameworks like the BCG Matrix to assess Walmart's position and proposes several alternative solutions to enhance its online presence and sales. Recommendations include boosting the web-based grocery business, offering home delivery, and investing in e-commerce distribution centers. The report also discusses the execution of these strategies, including budget considerations and potential challenges like financial constraints and employee resistance. Ultimately, the report emphasizes the importance of influencing Walmart's websites and enhancing user experience to encourage online purchases and maintain a competitive edge in the retail market. The report concludes with references to relevant academic and industry sources supporting the analysis.

INTERNATIONAL CONSULTANCY
SKILLS
Student’s name
University Name

INTRODUCTION
 Walmart is American Multinational retail business
organization which operates in different chain of
hypermarkets, grocery stores and discount
stores.
 The headquarters of Walmart is situated in
Bentonville, Arkansas.
 Walmart was founded by Sam Walton in the year
1962 and was incorporated in the year 1969
(Walmart.com. 2020).
 The business organization is publically traded at
New York Stock Exchange

STRATEGIC FRAMEWORKS
Market Penetration
Walmart has global presence
It has 11,503 stores worldwide
Product Development
Minor intensive strategy as product
development
Offers new products in the existing
as well as the new markets
Market Development
Discounted products and services
Online presence
Market development intensive
growth strategy
Diversification
entered video streaming market in
the year 2010
Acquisitions strategy
Boosts higher efficiency
Supports low cost operations
ANSOFF MATRIX

BCG MATRIX

CURRENT
SITUATION/CHALLENGES
 Online sales growth lags behind
 Presence of stiff competition in the Market
 Changing consumer needs and preferences

ALTERNATIVE SOLUTIONS
 Recommendation 1: The Company can increase its online sales
by boosting its web based grocery business. It can increase the
number of outlets where the consumers can place their orders
online and pick up at the Brick and Mortar stores. The company can
offer ‘Delivery at home’ option
 Recommendation 2: The Company can also provide free home
delivery service to the members of Sam’s Club. This will facilitate
sales through online stores.
 Recommendation 3: The business organization can close the
Sam’s club store and invest more into e-commerce distribution
centers in and around the globe. The Sam’s club can be
restructured by the company. However, it might increase the
operating income of the consumers. The employees operating in
Sam’s Club might lose their position and might end up out of work.

SOLUTION
Increasing online sales and boosting web based
grocery business.
The organization can enhance it online sales by
implementing digital media marketing strategies and
influencing the consumers to ‘Purchase online’
through the online stores. This might improve the
profitability of the company. The online presence of
the business organization can improve the brand
image and unique brand identify. This will enable the
business organization to maintain its position and
improve its competitiveness.

EXECUTION

BUDGET FOR CHANGE IMPLEMENTATION
Elements Cost
Website development – $1000
Maintaining the websites $500
Training and development of employees $1200
Online marketing (Pay per click, email
marketing, social media marketing,
website designing)
$2500
TOTAL $5200

CHALLENGES FACED DURING EXECUTION
 Financial constraints
 Resistance from employees

CONCLUSION
 Walmart has been facing difficulties in maintain in
online stores, due to stiff competition and
constantly changing buying patterns of the
consumers.
 It is recommended to influence its websites and
continuously enhance its functionality to
encourage consumers to purchase from its online
stores.
 The company needs to invest heavily in building
websites and designing to enhance user
experience.

REFERENCES
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