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Wal-Mart
This Industry Examination looks at Wal-Mart
                 Stores, Inc.

                   Sarah Gay
                   MBAM 619
                January 31, 2009
Industry sector and the
  NAICS t wo digit code
  44-45 = Retail Trade
    Wal-Mart = 45
      Establishments engaged in retailing
      merchandise, generally without
      transformation.
      Final step in the distribution of merchandise.
      Store and non-store retailers
Industry Sub-Sector
452112 Discount Department Stores US
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.
Department stores in this industry sell a wide range of general
merchandise (except fresh, perishable foods).
Wal-Mart vs.
Industry : Sales
Wal-Mart vs.
Industry : Size
Wal-Mart vs.
          Industry : Growth
                                  Long-Term Growth Rate (5 Years)

                  14.00%

                  12.00%

                  10.00%
Growth Rate (%)




                   8.00%
                                                                                  Series1
                   6.00%

                   4.00%

                   2.00%

                   0.00%
                           Wal-Mart   Target   Costco   Kmart   BJ's   Big Lots
HHI: Market
           Concentration


In terms of market share, although Wal-Mart is large
and has a large concentration in the market, they are
 not a monopoly. A full monopoly would mean an HHI of
  10,000. Vice versa, the market share is not evenly
concentrated as well, as that would be an HHI of 1,250.
Travel Agencies
NAICS Code: 561510
This industry comprises establishments primarily
engaged in acting as agents in selling travel, tour,
and accommodation ser vices to the general public
and commercial clients.
Internet Sites for
  Travel Booking
Book Publishing
NAICS Code: 51113
This industry comprises
establishments known as
book publishers.
Establishments in this
industry carry out design,
editing, and marketing
activities necessary for
producing and distributing
books. These
establishments may
publish books in print,
electronic, or audio form.
Book Publishing by
  Segmentation
Life Cycle
Focusing on growth, new
                                                  Saturation, declining profits,
competitors, production
                                                    standardized features
      streamlining




                                                      Displaced by substitutes,
                                                      falling profits, only a few
                                                           large players left




                          Discount Merchandising Industry
                          Travel Agency Industry
                          Book Publishing Industry
Cycle of Creative
  Destruction & CSR Industry
                        How it was born: Born from the
                        need for people to book air travel (in
                        real-time) after the deregulation of
                        the airlines. Flights were more
                        complicated to plan/purchase.


                                                      How it matured: Technology continued
                                                      to allow travel agents the upper hand
How it was reconstituted: US Travel
                                                      in earning fees from the airlines and
Agents formed the U.S. Travel Agent                   ensuring that customers would need
Registry (USTAR) and created a travel-                them to plan travel, until internet
agent owned CRS (Genesis). Genesis                    bookings came about. This new
allowed them technological freedom                    technology, and the release of e-
and a release from the strongholds of                 ticketing, allowed customers to book
the airline industry.                                 their own ticket and plan their own
                                                      trips.

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Walmartindustryfinal 1233473284561855 3

  • 1. Wal-Mart This Industry Examination looks at Wal-Mart Stores, Inc. Sarah Gay MBAM 619 January 31, 2009
  • 2. Industry sector and the NAICS t wo digit code 44-45 = Retail Trade Wal-Mart = 45 Establishments engaged in retailing merchandise, generally without transformation. Final step in the distribution of merchandise. Store and non-store retailers
  • 3. Industry Sub-Sector 452112 Discount Department Stores US 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. Department stores in this industry sell a wide range of general merchandise (except fresh, perishable foods).
  • 6. Wal-Mart vs. Industry : Growth Long-Term Growth Rate (5 Years) 14.00% 12.00% 10.00% Growth Rate (%) 8.00% Series1 6.00% 4.00% 2.00% 0.00% Wal-Mart Target Costco Kmart BJ's Big Lots
  • 7. HHI: Market Concentration In terms of market share, although Wal-Mart is large and has a large concentration in the market, they are not a monopoly. A full monopoly would mean an HHI of 10,000. Vice versa, the market share is not evenly concentrated as well, as that would be an HHI of 1,250.
  • 8. Travel Agencies NAICS Code: 561510 This industry comprises establishments primarily engaged in acting as agents in selling travel, tour, and accommodation ser vices to the general public and commercial clients.
  • 9. Internet Sites for Travel Booking
  • 10. Book Publishing NAICS Code: 51113 This industry comprises establishments known as book publishers. Establishments in this industry carry out design, editing, and marketing activities necessary for producing and distributing books. These establishments may publish books in print, electronic, or audio form.
  • 11. Book Publishing by Segmentation
  • 12. Life Cycle Focusing on growth, new Saturation, declining profits, competitors, production standardized features streamlining Displaced by substitutes, falling profits, only a few large players left Discount Merchandising Industry Travel Agency Industry Book Publishing Industry
  • 13. Cycle of Creative Destruction & CSR Industry How it was born: Born from the need for people to book air travel (in real-time) after the deregulation of the airlines. Flights were more complicated to plan/purchase. How it matured: Technology continued to allow travel agents the upper hand How it was reconstituted: US Travel in earning fees from the airlines and Agents formed the U.S. Travel Agent ensuring that customers would need Registry (USTAR) and created a travel- them to plan travel, until internet agent owned CRS (Genesis). Genesis bookings came about. This new allowed them technological freedom technology, and the release of e- and a release from the strongholds of ticketing, allowed customers to book the airline industry. their own ticket and plan their own trips.