Wal-MartThis Industry Examination looks at Wal-Mart

Stores, Inc.

Sarah GayMBAM 619

January 31, 2009

Industry sector and the NAICS two 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 USThis 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)

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

Wal-Mart Target Costco Kmart BJ's Big Lots

Gro

wth

Rat

e (%

)

Series1

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 AgenciesNAICS Code: 561510This industry comprises establishments primarily engaged in acting as agents in selling travel, tour, and accommodation services to the general public and commercial clients.

Internet Sites for Travel Booking

Book PublishingNAICS 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

Discount Merchandising IndustryTravel Agency IndustryBook Publishing Industry

Focusing on growth, new competitors, production

streamliningSaturation, declining profits,

standardized features

Displaced by substitutes, falling profits, only a few

large players left

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 in earning fees from the airlines and ensuring that customers would need them to plan travel, until internet bookings came about. This new technology, and the release of e-ticketing, allowed customers to book their own ticket and plan their own trips.

How it was reconstituted: US Travel Agents formed the U.S. Travel Agent Registry (USTAR) and created a travel-agent owned CRS (Genesis). Genesis allowed them technological freedom and a release from the strongholds of the airline industry.