Research On The Profit Model Of Walmart Inc. Under The Background Of Digital Transformation

In recent years,emerging digital technologies have played a key role in promoting highquality economic development,invigorating the real market,and promoting the transformation and optimization of traditional industries.At the same time,the traditional retail industry is falling into difficulties such as difficult cost control,low operational efficiency and inability to meet consumer demand.E-commerce industry is also in a bottleneck due to intensified competition,single channel and high cost of acquiring customers.Under this background,the transformation of traditional retail enterprises is imminent,and the "New Retailing" model emerge as the times require.Different from the product-led logic of traditional retail mode,the primary issue of" New Retailing " mode is "how to create value for customers".It is centered on consumer’s experience and driven by data resources to constantly optimize all links of retail enterprise value chain.With the deepening of digitalization,the new retailing industry presents a trend of scene integration,format innovation and ecological improvement.Due to the rapid development of the "New Retailing" model,most of the researches on the digital transformation of retail enterprises at home and abroad focus on the "small and sophisticated" new retail enterprises,while there are few literatures analyzing the digital transformation of traditional large retail enterprises.Due to digital transformation,the profit model of traditional retail enterprises has been unable to meet the demand,so the thesis takes the profit model of traditional retail enterprises under digital transformation as the core issue,and takes Wal-Mart,a large traditional retailer,as the case study to analyze the profit model under the background of digital transformation through relevant theories.This thesis through the literature research method to sort out and summarize the existing research on digital transformation and profit model,combined with the analysis of dynamic capability theory,business process reengineering theory,value creation theory and value chain theory to build the framework and theoretical basis of case analysis.On this basis,the article through the industry analysis and Wal-Mart introduction,through the case study method,combined with dynamic capability theory and business process reengineering theory to explain Wal-Mart’s digital attributes,digital profit model of four elements of the framework.Then,based on the analysis of the status quo of Wal-Mart’s profit model after digital transformation,combined with value creation theory and value chain theory,the thesis analyzes the realization form and mechanism,profit effect and risk of Wal-Mart’s digital profit model,and puts forward specific suggestions.The study finds that Wal-Mart has realized a new digital retail ecosystem,whose digital attributes are reflected in demand forecasting,membership management,supply chain coordination and marketing activities.In the profit pattern of Wal-Mart digital,Wal-Mart has a strong source of profit,the rich profit measures,wide range of customers and strong profit guarantee,on the basis of the Wal-Mart by customer demand as the center,data exchange as a guarantee,innovation as the driving scene value proposition,implements and create customer value,thus for the enterprise to create a variety of forms of income.Based on the analysis of the effect of the profit model,it is found that the digital transformation will reduce the profitability in the short term,but the long-term profit potential is largeThis article analyzes Wal-Mart profit model,describes the framework of digital transformation under the background of Wal-Mart profit model,at the same time,with the help of data analysis shows the effect of the profit model.For the retail industry,it helps to promote the combination of the traditional retail enterprises and the digital.It has reference significance for the future development of the industry.