About Walmart • Wal-Mart Stores, Inc., is an American multinational retail corporation that operates chains of large discount department stores and warehouse stores. • Headquartered in Bentonville, Arkansas, the company was founded by Sam Walton in 1962 and incorporated on October 31, 1969. It has over 11,000 stores in 27 countries, under a total 71 different banners. • Walmart is the world's largest company by revenue, according to the Fortune Global 500 list in 2014, the biggest private employer in the world with over two million employees, and the largest retailer in the world.
Walmart goes online • Founded in January 2000, Walmart.com is a subsidiary of WalMart Stores, Inc. headquartered in San Francisco Peninsula near Silicon Valley, where the access to the world's deepest pool of Internet executive and technical talent is.
• More than one million products have been listed with a mission statement “We feature a great selection of highquality merchandise, friendly service and, of course, Every Day Low Prices. We also have another goal: to bring you the best shopping experience on the Internet.”
Pros • Walmart.com has its offline version as back bone. • Large variety of products have been listed with everyday low pricing model. • As well established brick and mortar retailer the delivery through its online version is made fast. 1 hour guarantee delivery is a plus point. • Has high brand image among people. • Powerful supply chain management increased the efficiency of online operations globally.
Cons • Late entry to the e-commerce field. • Has heavy competition from amazon, ebay, yahoo shopping etc. • The customer base of Walmart.com is not as much good as its offline version. Because most of the people visit walmart for shopping experience. • The Walmart.com site would never be described as high tech. It still lacks the customer personalization features used by Amazon.
Analysis • Offline, Wal-Mart is a sprawling giant, the world's largest retailer. Its U.S. stores number 3,300 and it employs more than one million workers, which means about one out of every 300 Americans is a Wal-Mart employee. • But Online... Wal-Mart's dominant place in offline retail might be expected to provide it with top dog e-commerce status. But analysts say Walmart.com is distinctly back of the pack in terms of total online sales, and a list of traffic figures for leading ecommerce sites released by comScore Media Metrix for September supports this.
Contd… • At the top is e-commerce wunderkind eBay, with 34.4 million visitors, followed closely by Amazon (the site most closely resembling Walmart.com) with 25.6 million visitors. • Working down the list, Yahoo Shopping had 24.5 million, Dell had 11.4 million, Barnes and Noble had 8.2 million, and MSN Shopping had 7.3 million • Down at #13, with 6.5 million visitors, is Walmart.com. A respectable showing, to be sure, but anemic considering that the company has been a household name for decades.
Contd… • Integration of its offline stores with its online version was the best strategy done by walmart. • This gave the customers to order their needs fro anywhere and collect it from any of the retail store near to them. • The online version had faced some lags initially but on due time it had recovered; following new technologies, high customer service, credit card service, return policy, guaranteed delivery, help centers, product recall and huge discounts.
Conclusion • With the power of integration, leveraging its massive offline presence to compliment its e-commerce operation, it may not matter that Walmart.com lags its online rivals. It is, after all, an effective part of an overall retail operation that is expected to generate $750 billion approx in revenue in 2014. With a jaw-dropping revenue figure like that, Wal-Mart can afford to take its time in growing its online market share.