Walmart, Travel Agency and Publishing Industry Analysis

Lance KawamotoMBAM 619

4521

45211

452110

4521101

4521102

4521103

452

44-45Retail Trade

General Merchandise Stores

Department Stores

Department Stores

Department Stores

Conventional Dept. Stores

Discount or Mass Merchants

National Chain Dept. Stores

Walmart NAICS Chart

Growth

Profit

2007 Retailers World Wide

High growth / High ProfitHigh growth / Neg Profit

Neg growth / Neg Profit Neg growth / High Profit

Discount Retail$239 Billion

3.3% Revenue Growth10.3% Profit Growth

Publishing$32 Billion

.7% Revenue Growth-4% Profit Growth

Travel Agency$9 Billion

-% Revenue Growth-% Profit Growth

Growth

Profit

Wal-Mart$374 Billion

10.3% growth9% profit

TESCO$95 Billion

12.4% growth12% profit

Metro$88 Billion

4.6%100%

Carrefour$112 Billion3.6% growth59.9% Profit

Kroger Co.$70 Billion

6.3% growth16% profit

Target$63 Billion

6.3%15.7%

CostCo$63 Billion

6.3% growth3.8% profit

2007 Retailers World Wide

5.3

94.7

6.5

93.5

15.1

84.9

24.7

75.3

31.1

68.9

39

61

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1997 1998 1999 2000 2001 2002

Airline Ticket Sales Distribution

Old ChannelsOnline Travelers

0

5000

10000

15000

20000

25000

1993 1997 2002 2007

22785 22806

17030

13283

Travel Agency Entities

Travel Agency Entities

Travel Agent Industry

The Travel Agent Industry has been in a steady decline since the advent of online ticket sales. Since 1997, Sales of Online travel tickets and accommodations has eroded traditional channels of ticket distribution. Over the coming years, the Travel Agency Industry is expected to shrink as the ticket distribution channel continues to dis-intermediate.

Travel Agent Industry

2007 Travel Agency Channel Share

National/Global travel agencies

Independent local travel agencies

Airline Direct Services

CRS/GDS Direct Services

Cybermediaries

Tour Package Specialists

New Competitors (unspecified)

2002 Travel Agency Channel Share

National/Global travel agencies Independent local travel agenciesAirline Direct Services CRS/GDS Direct Services CybermediariesTour Package Specialists New Competitors (unspecified)

Unlike the Travel Agent Industry, the CRS’s adapted to the new distribution paradigm. CRS’s at first thrived by being the primary electronic intermediary between the airlines and Travel Agency’s. The rise of the internet and online ticket booking forced CRS’s to shift their strategy from being middlemen to becoming the information technology backbone of the airline industry.

Growth

Time

Discount Retailers Publishing /Print

Travel Agencies

Life Cycle Chart

Growth for Discount retailers is fueled by expansion into international markets.

Profits and growth in the print industry is quickly being eroded by free online content.

Travel Agencies were replace by internet sales distribution channels and savvy consumers.