What were the industry conditions facing Walmart at the beginning of 2

What were the industry conditions facing Walmart at the beginning of 2012?

Specifically, identify and comment about expectations for the sources for increasing revenues, concerns about costs, expectations for online sales, and where the retail industry was situated from a life-cycle perspective. You DO NOT need to address Porter’s Five Forces model in this question.

ANSWER

At the start of 2012 significant economic recovery was not expected until 2014. Increased revenues would need to come from an increase in market share and maintaining existing customers. Of concern was the level of consumer confidence. Additionally, in a slow growth environment rasing prices is difficult, thus Walmart should be concerned about increasing product costs even as financing costs were expected to remain low. In reflecting about market conditions, Walmart understand that the retail market is mature and not likely to outgrow the general economy. Online sales, however, show significant potential but in a highly competitive market.