BUS402 Week 2 Interactive Assignment

The company I have chosen is Walmart. Walmart is a US-based multinational retailer corporation founded in 1962 by the Walton family. It operates a chain of hypermarkets, grocery stores, and discount department stores. As of 2020, the shop has 11,718 stores and clubs in different countries operating under different names. Walmart stands as the world’s largest company by revenue (Business Strategy Hub, 2020).

Currently, Walmart is facing economic trends due to the COVID-19 crisis. The company has limited the number of customers in stores to help fight the spread of coronavirus. Walmart is using floor markers asking customers to move in one direction in each aisle and maintain social distancing. The company is under significant pressure from economic changes, which leads to changes in revenues.

Walmart’s online sales have significantly grown over the years by 41% due to changes in trade patterns, consumer tastes, and in technology. According to the Walmart report, the earnings per share was $1.16, revenues $127.99b, and 3.2% sales volume (Lu, 2019). The net income grew to $3,29B compared with $1.71b a year ago. Thus, the total revenues grew from $ 124.89b to 2.5% to 127.99 billion. The company shares are more than 30% this year.

Walmart’s revenue is expected to rise in the fiscal year 2021 due to high stock prices. It is because of the many opening of online retail stores in different countries. Walmart stock is expected to hit $195 per share in the coming years.

With the COVID-19 pandemic, there is an unusual spike in demand for grocery and household products as consumers prepare for stay at home (Business Strategy Hub, 2020). Therefore, Walmart is benefiting from the millions of people stocking up on products for the unknown future. Walmart should implement a strategy that will maintain the demand high even after the pandemic.

References

Business Strategy Hub. (2020). Walmart SWOT analysis 2019 | SWOT Analysis of Walmart. Retrieved from https://bstrategyhub.com/swot-analysis-of-walmart-2019-walmart-swot-analysis/

Lu, M. (2019). Evaluation of Financial Situation of Walmart Company.