Case Study : Walmart Inc.

1229 Words5 Pages
Walmart Inc. is a retail store with locations all over the country. It offers all kinds of consumer goods at affordable prices such as groceries, clothes, furniture, and household appliances. Walmart is able to do this because of its size and influence in the industry. As the top retail store in the country, it is able to negotiate better pricing deals with suppliers for their inventory hence keeping their costs down. A part of this benefit is passed off to the customer in the form of affordable prices.
Walmart is part of the big box retail industry with competitors like Costco, Home Depot, Target, and BJ Wholesale Club. Each of these companies use a slightly different regression model to forecast their revenue. We were unable to gain
…show more content…
The second article was by Anthony L. Liuzzo and it focused on forecasting holiday retail sales in 2013. Although our purpose was to forecast revenue, we gained more insight into the variables that retail companies use in their regression models. We selected consumer debt, inflation, and consumer confidence based on this article. Variables such as unemployment rate and disposable income were discussed as the underlying causes of the variables used in the regression model. For instance, the author links unemployment rate as a factor that determines the level of consumer confidence.
Other articles that we used in our research are listed in the bibliography. When we concluded our research, we noticed different authors used different variables in their model based on their objective and goal. Our goal was to come up with a regression model that could forecast the revenue of big box retail companies. As a result, our model is different from those that we studied in the research process. Below is a detailed discussion of all the variables we selected and their expected relationship/impact on revenue. It is important to note that the list discussed below was compiled without any consideration for cost or time constraints.
Variables
Competition: There are few direct competitors of Walmart like Costco. This is because most companies cannot beat the price that Walmart offers its
Get Access