Business Finance - Operations Management 6-3 Assignment: 24-month Pro Forma

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BUSINESS MODEL CANVAS
JACOB WRIGHT
SOUTHERN NEW HAMPSHIRE UNIVERSITY
BUS-400: DRIVING BUSINESS OPPORTUNITIES
PROFESSOR WINKELHAKE

COMPANY: WALMART

LAST UPDATED: 29 SEPTEMBER 2023

UNIQUE VALUE PROPOSITION

Walmart's unique value proposition leverages the Blue Ocean Strategy by offering an expansive and cost-effective product assortment in physical stores and online stores. This strategy allows Walmart to cater to price-conscious consumers of all demographics. By providing a one-stop shopping destination with low prices, Walmart gains a strategic advantage in the marketplace, attracting a broad customer base and fostering customer loyalty.

1: KEY BUSINESS MODEL QUESTIONS: THE CUSTOMER

Customer Acquisition: Walmart acquires customers through a multi-channel approach, including in-store foot traffic, online shopping, and marketing campaigns (Jindal et al., 2021).
Delivery Channels: Walmart delivers products and services to customers through its extensive network of physical stores, an efficient supply chain, and a user-friendly e-commerce platform (Jindal et al., 2021).
Customer Relationship Management: Walmart maintains customer relationships through various means, including personalized shopping recommendations, loyalty programs, and responsive customer service to enhance the overall shopping experience.

1(A): KEY BUSINESS MODEL QUESTIONS: THE CUSTOMER, CONTINUED

Walmart employs a pricing strategy that offers competitive, low prices to its customers, catering to price-conscious consumers (Wood & Wood, 2023). Its revenue model relies on high-volume sales with thin profit margins.
While specific revenue calculations require more data, Walmart's financial reports and sales data analysis enable it to estimate revenues for the next month, quarter, and year.
Key activities for delivering value include efficient supply chain management, inventory control, customer service, and marketing to ensure the availability of affordable products and a seamless shopping experience.

2: KEY BUSINESS MODEL QUESTIONS: ASSETS, PARTNERS, AND COST

Walmart's assets include a vast network of physical stores, e-commerce infrastructure, a well-established supply chain, and a strong brand reputation(Walmart, 2023).
Key partners for Walmart encompass suppliers, logistics companies, technology providers, and various stakeholders in the retail ecosystem (Walmart, 2023).
Cost structures entail operating expenses related to store maintenance, staffing, and logistics. Additionally, procurement costs are associated with sourcing products, while technology investments are made in e-commerce and digital initiatives to enhance the customer experience.

3: CREATE YOUR OWN BUSINESS MODEL CANVAS CHART

Key Partners

Partnerships with a diverse range of suppliers, including local and international, to ensure a robust supply chain.
Collaborations with technology providers for e-commerce and digital capabilities.
Partnerships with logistics companies for efficient distribution and delivery.
Engagement with community organizations to support DEI and CSR initiatives.

Key Activities

In-store and online sales operations will require significant workforce.
E-commerce platform maintenance and development.
Regular inventory management and restocking.
Marketing and advertising campaigns to promote the new product/service.

Key Resources

Retail Stores
E-commerce Platform
Supply Chain
Human Capital
Supplier Relationships
Financial Capital

Value Proposition

Value Proposition:

Broad product assortment
Competitive pricing
Convenient shopping experience
Multichannel accessibility

Risks to Business Model:

Supplier relationships
Competitive market
Regulatory challenges

Strengthening the Business Model:

Diversify supplier base
Continuous market analysis
Regulatory compliance measures

Customer Relationship

Walmart will maintain a strong focus on customer satisfaction and loyalty.
Utilizing digital channels for customer engagement and support will be a priority.
Data analytics will be key in understanding and catering to customer preferences.
A robust customer feedback mechanism will be in place to address concerns and improve offerings.

Channels

Leveraging Walmart's extensive physical store network and e-commerce platforms as distribution channels.
Utilizing online and offline advertising and promotions to drive customer traffic.
Leveraging existing partnerships with suppliers and logistics providers for efficient inventory management and order fulfillment.

Customer Segments

Diverse customer segments, including price-conscious consumers of all demographics.
The product/service caters to a broad customer base seeking affordability and convenience.

Cost Structure

Operating Costs: Efficient store operations and supply chain management will help control operating costs.

Procurement Costs: Strong supplier relationships and bulk purchasing can minimize procurement expenses.

Technology Investments: Investment in e-commerce and digital initiatives can optimize technology-related costs.

Revenue Streams

Revenue will primarily come from product sales both in physical stores and online.
Additional revenue may be generated through subscription-based services like premium memberships.
Advertising and promotional partnerships could contribute to revenue through sponsored content and placements.
Strategic collaborations with other brands or retailers might result in revenue-sharing opportunities.
Potential revenue from data monetization may exist, utilizing customer insights for targeted marketing and partnerships.

4: CONSIDER YOUR BUSINESS MODEL

Proceeding with this new product/service aligns with Walmart's core strategy of offering affordable products and expanding its customer base.
The BMC chart indicates strong potential for revenue generation, particularly through the vast existing customer network and supply chain capabilities.
Leveraging Walmart's existing assets, partnerships, and market presence enhances the feasibility of this endeavor.
Risks to the Business Model:
Risks include potential supply chain disruptions, especially if there are dependencies on specific suppliers (Gurtu & Johny, 2021).
Competition from other retailers or e-commerce giants could impact market share and profitability.
Changing consumer preferences and market dynamics may affect the success of the new product/service.
Strengthening the Business Model:
Establishing relationships with multiple suppliers can mitigate supply chain risks.
Regularly analyzing market trends and adapting the product/service to evolving customer preferences can reduce risks associated with changing consumer behavior.
Continuous monitoring of the SWOT analysis and proactive adjustments to the business model will help in risk reduction and long-term sustainability.

5: CLARIFY YOUR BUSINESS MODEL ASSUMPTIONS

BMC Chart Item in Question	This Is a Fact. Here Is My Evidence:	This Is an Assumption
Collaborations with technology providers for e-commerce and digital capabilities.	Walmart can gain more from collaboration with technology providers and e-commerce. For example, the company can streamline its costs and supply chain.
Potential revenue from data monetization may exist, utilizing customer insights for targeted marketing and partnerships.	X
Investment in e-commerce and digital initiatives can optimize technology-related costs.	Walmart invests in e-commerce and digital initiatives to optimize technology costs.
Efficient store operations and supply chain management will help control operating costs.	Walmart emphasizes efficient operations to manage its operating costs effectively.
Revenue will primarily come from product sales both in physical stores and online.	Walmart derives most of its revenue from product sales through its retail channels.
Partnerships with logistics companies for efficient distribution and delivery.	Walmart partners with logistics companies to ensure efficient distribution and delivery.
Collaborations with technology providers for e-commerce and digital capabilities.	Walmart invests in e-commerce and digital initiatives to optimize technology costs.

6: PREPARING TO MEET CUSTOMERS: MATERIALS AND SALES PROCESS

Website (✔️ Highlighted)
Customer presentation
Marketing plan (✔️ Highlighted)
Sales process description
Acquisition of customers (✔️ Highlighted)
The sales process (for example: website sales)
Pricing options: single-priced product or service versus multi-tier pricing

7: UPDATE YOUR DOCUMENTATION

The product/service is targeted at price-conscious consumers of all demographics.
The type of value our product/service delivers is affordable products and a convenient shopping experience.
Our product/service is unlike others because of Walmart's vast product assortment and low prices, which make it unique in meeting the needs of budget-conscious shoppers across various demographics.

9: UPDATED BUSINESS MODEL CANVAS CHART