One of the most attractive fields for present-day businesses is e-commerce allowing to occupy a greater share in markets of operation, and Walmart is no exception to the rule. The company strives to enhance its international presence through elaborating online services, and this method seems beneficial for expansion while implying numerous risks (“2020 Walmart Annual Report”). Therefore, it is vital to examine the possible directions of its development in this respect and the impact of corresponding decisions on sustainability efforts as well as forecast profitability in the long run.
Expectations of Walmart’s Success in E-Business
The first consideration within the scope of this paper is expectations regarding Walmart’s potential success or failure in the field of e-business in the global marketplace. As follows from the company’s recent report, there are many factors of economic and regulatory nature alongside operating conditions presenting risks for its expansion. Thus, it significantly depends on shifting international market trends, transportation and energy costs, and competition in this area (“2020 Walmart Annual Report”). In addition, customers’ acceptance of their products, sales, tax and labor laws, and other varying conditions of different countries add to the threat (“2020 Walmart Annual Report”). Such a variety of issues indicates that Walmart’s actions in this direction can be successful only in the case if it manages to timely readjust to rapidly changing environment in the future.
E-Business and Sustainability Efforts
Another factor, which should be taken into account when examining the situation, is the effects of e-business and its expansion on the sustainability efforts of the company. As can be seen from the article, they imply recycling initiatives, the use of alternative fuels, and, more importantly, the correspondence of suppliers’ operations to the general requirements of the business (“Wal-Mart Sustainability”). Nevertheless, the increased presence of Walmart in the international online market will correlate with growing concerns of customers regarding compliance with the above provisions. The greater their share is, the more difficult it is to monitor all participants of the production and distribution processes. As a result, the rapid paces of implementing the idea of global e-business projects will inevitably harm the company’s image and undermine its sustainability efforts.
Profitability
The final consideration of this paper is profitability since its indicators will be affected by the enhanced participation of Walmart in e-business. At present, digital sales are gradually increasing, but their numbers are still insufficient for covering the costs of manufacturing and selling products (“2020 Walmart Annual Report”). Moreover, a positive outcome in the future in this respect depends on the business’ capability to manage the identified risks and ensure sustainable development (“Wal-Mart Sustainability”). In other words, the above considerations are complemented by the financial data from the reports and allow concluding on a number of conditions to fulfill in order to become profitable. Thus, Walmart’s initiative will be beneficial from this perspective in the case if its operations comply with the regulations, and the company keeps the current market share for a sufficiently long period.
Conclusion
To summarize, the expectations concerning Walmart’s success in e-business in various countries are connected to the efficiency of its actions. For this, it will need to address challenges in terms of economic and societal factors alongside the differences in regulations. However, the expansion process is going to be relatively slow since faster paces might harm the sustainability of the business. In turn, profitability is currently insufficient but will increase over time if Walmart develops measures to eliminate the identified threats.
References
“2020 Walmart Annual Report.” Walmart, 2020. Web.
“Wal-Mart Sustainability.” 2021. Web.