This week Apple announced its commitment to the Titan Project.
The technology company plans to offer an electric vehicle by 2019. It seems as though more and more companies are exploring this opportunity.
This is one of the reasons it surprised me when August
reports from Walmart showed that the company has reached a plateau. With the
North American market fairy saturated with stores and superstores and other
markets not far behind, there are concerns about the company’s future growth
potential.
I believe that the potential and opportunities for Walmart’s
growth should be evaluated otherwise than how many stores it has left to open in the world. I believe this plateau is a good time for Walmart to consider its future.
I would like to see Walmart do what it does best. The way
the company took $200 designer blue jeans and made them available and accessible for
$14.99, I would like to see it expand into the automobile market.
I am not saying Walmart should place used or even new car
lots out beside the gardening supplies!
Walmart shoud implement its best practices to the automotive industry.
Walmart shoud implement its best practices to the automotive industry.
Walmart is great at sourcing goods at the best prices and
buying in bulk for even deeper discounts. The economy of scale is a wonderous principle. Its distribution systems are also legendary. Using the business acumen it already has, I would like to see Walmart
create its own brand of automobiles. The George Car.
What I think would have a huge impact on the world is if Walmart
were to embark into the electric vehicle industry. Walmart could make this form
of transportation a viable option for the masses.
By contrast, the relative scarcity –even EXCLUSIVITY -of
Teslas, Leafs, Sparks and other brands demands a premium price in addition to
the cost of the research and development and the technology itself. They are certainly desirable, but not
necessarily accessible.
Why should Walmart do it? Oil is at a historic low!
Sure, right now oil is trading at about $45 a barrel and a
gallon of gas is under $3 in most states. But anyone who does not foresee
the return of the $150 barrel better remove their sleeping mask!
EV is the future... Now.
Walmart should do it because it is a new frontier for them
and will ensure continued expansion into new markets.
Designing and developing an EV isn’t like deciding on next year’s
kitchen tableware collection. Even if Walmart started this year, it would be several
years before their EV became available. No doubt oil will be trading higher by
then. Demand for EV will increase.
Now that EVs have gained acceptance and charging stations are expanding across the nation, there is a great opportunity here. Competing with the lower priced Spark may give Walmart the impetus it needs.
Taking on the mission of delivering a well designed EV for under $15,00 would be good for Walmart – and good for the world.
It would ensure Walmart's expansion, create jobs, offer sustainable transportation to the masses and be good for the environment.
So take a break on that plateau and move onward and upward, Walmart!
Roll Forward!
As Walmart stock prices drop due to reports of saturation, I have realized that my own smart money has been safe and secure, growing and giving steady returns…elsewhere.
As Walmart stock prices drop due to reports of saturation, I have realized that my own smart money has been safe and secure, growing and giving steady returns…elsewhere.
_________________________________________
Sources:
Lynda at Sonoran Sun | Private Equity Investments
Sources:
Lynda at Sonoran Sun | Private Equity Investments
No comments:
Post a Comment