industry structure - walmart/crs

INDUSTRY STRUCTURE ASSIGNMENT

Natalie-Rosanna Rebot

Walmart NAICS Information

Walmart: Services/Retail Trade Industry Sector: Retail Trade 44-45

The Retail Trade sector comprises establishments engaged in retailing merchandise, generally without transformation, and rendering services incidental to the sale of merchandise.

Walmart NAICS Information

Industry Sub-Sector: General Merchandise Stores: 452 Department Stores: 4521(1)

General merchandise stores are defined as retail stores that sell a number of lines, such as dry goods, apparel and accessories, furniture and home furnishings, small wares, hardware, and food. General merchandise stores are subdivided into three major groupings: department stores, variety stores, and miscellaneous general merchandise stores.

Walmart NAICS Information

Discount Department Stores: 452112

This U.S. industry comprises establishments known as department stores that have central customer checkout areas, generally in the front of the store, and that may have additional cash registers located in one or more individual departments

Discount Industry: Size (by Market Cap)

Discount Industry: Growth Rate

Discount Industry: Profitability (by %ROE)

Discount Industry: Profitability (by Net Profit Margin)

Walmart’s Performance vs. Industry Walmart is by far the biggest in the sector

with the highest Market Cap (184.83B) The discount sector has a Market Cap of

239.9B so Walmart makes up about 77% of the total.

GROWTH: Walmart’s growth rate is not as high as the

others when looking at the revenue percentage growth.

PROFITABILITY: Walmart is the highest with 21.13% ROE

HH Index

Discount Deparment Store Market Cap (Billions) % Market Cap HH Index

Wal-Mart Stores Inc. 184.83 0.77 5933.89

Target Corp. 23.49 0.10 95.84

Costco Wholesale Corp. 19.51 0.08 66.12

Family Dollar Stores Inc. 3.89 0.02 2.63

Dollar Tree Inc. 3.87 0.02 2.60

HH = 6101.08

Profitability, Growth Rate, Size Chart

Life-cycle Chart

Introduction Growth Maturity Decline

Revenue

OperatingIncome

Discount Merchandising

Discount Merchandising

Book Publishing

Book Publishing

TravelAgency

Cycle of Creative Destruction :: CRS Born

Late 1950s Launched: 1964 (American Airlines)

Matured 1990: 75% of airline tickets sold through

CRS (this defines maturity since it reached it’s peaked and had market control at this time)

Reconstituted Online travel websites and e-tickets phased

out CRS The “Genesis Project”