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Chapter 10: CASE STUDY: Walmart and Amazon Duke It Out For E-Commerce Supremacy

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Muhammad Alif Hidayatullah

Walmart and Amazon are competing for online retail supremacy. Both companies are investing heavily in technology and infrastructure to refine their business strategies and better serve customers. Walmart is leveraging its large physical store network and working to expand its online selection, while Amazon is optimizing its supply chain and expanding warehouse and fulfillment capabilities to enable fast delivery. Going forward, both Walmart and Amazon are likely to remain successful in online retail by continuing to use technology to improve customer experience through wide product selection, fast delivery, and competitive prices.

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Chapter 10: CASE STUDY: Walmart and Amazon Duke It Out For E-Commerce Supremacy

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Muhammad Alif Hidayatullah
388 views25 pages
Walmart and Amazon are competing for online retail supremacy. Both companies are investing heavily in technology and infrastructure to refine their business strategies and better serve customers. Walmart is leveraging its large physical store network and working to expand its online selection, while Amazon is optimizing its supply chain and expanding warehouse and fulfillment capabilities to enable fast delivery. Going forward, both Walmart and Amazon are likely to remain successful in online retail by continuing to use technology to improve customer experience through wide product selection, fast delivery, and competitive prices.

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Walmart and Amazon are competing for online retail supremacy. Both companies are investing heavily in technology and infrastructure to refine their business strategies and better serve customers. Walmart is leveraging its large physical store network and working to expand its online selection, while Amazon is optimizing its supply chain and expanding warehouse and fulfillment capabilities to enable fast delivery. Going forward, both Walmart and Amazon are likely to remain successful in online retail by continuing to use technology to improve customer experience through wide product selection, fast delivery, and competitive prices.

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© All Rights Reserved
Download as PDF, TXT or read online from Scribd
Download as pdf or txt
388 views25 pages

Chapter 10: CASE STUDY: Walmart and Amazon Duke It Out For E-Commerce Supremacy

Uploaded by

Muhammad Alif Hidayatullah
Walmart and Amazon are competing for online retail supremacy. Both companies are investing heavily in technology and infrastructure to refine their business strategies and better serve customers. Walmart is leveraging its large physical store network and working to expand its online selection, while Amazon is optimizing its supply chain and expanding warehouse and fulfillment capabilities to enable fast delivery. Going forward, both Walmart and Amazon are likely to remain successful in online retail by continuing to use technology to improve customer experience through wide product selection, fast delivery, and competitive prices.

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Chapter 10: CASE STUDY

Walmart and Amazon Duke It Out for E-commerce Supremacy


INTRODUCTION

4 QUESTIONS

CONCLUSION
INTRODUCTION
• Walmart is the world’s largest and most
successful retailer
• Walmart’s facing the greatest threat which is
Amazon.com
• Amazon has changed the habits and
expectations of consumers
• Push model → pull model
INTRODUCTION
• Amazon has developed extensive warehousing
facilities and an efficient distribution network for
web shopping.
• Walmart is a more recognizable brand than
Amazon (lowest price, flexibility)
• Walmart has increased its investment in online
business
STRATEGIES

• Expand its selection The best of both worlds


of goods • e-commerce
• Build warehouses • physical stores
closer to urban
centers
• Expand same-day
delivery services.
10.15
Analyze Walmart and Amazon.com
using the competitive forces and value
chain models.
Wal-Mart The Five Forces Model
Power of
Substitutes
Low

Bargaining
Power of Rivalry Bargaining
Suppliers of
Customers
Low- High Low
Medium

Barriers to
entry:
Medium
Amazon - 5 Forces Model
Amazon The Five Forces Model
Power of
Substitutes
High

Bargaining
Power of Rivalry Bargaining
of
Suppliers Customers
Medium High High

Barriers to
entry:
Weak
10.16
Compare Walmart and Amazon’s business
models and business strategies.
Business model Business strategy
+ E-business and B2B implementation
+ Revolutionary supply chain management -
“pull” model
+ The business decision to decentralize the
+ Lead on Price
procurement process
Wal-Mart + Invest to differentiate on
+ Rapid replenishment system + accurate
Access
purchasing forecasting → reduce overall costs.
+ New standard B2B E-commerce
establishment
+ New generation of EDI - AS2

+ Expansion to other segments


+ Business-to-Consumer (B2C) to a mixed + Overall cost leadership
model + Attract new customers and
+ Amazon marketplace – Amazon's answer to keeps its old ones by offering
eBay low-price shipping through its
Amazon + Amazon's Associate Program Prime annual subscription
+ Amazon Web Services API (application + “Grow fast, even at expense
programming interface) of profitability”
+ Use a make-over to make for a snazzier
shopping experience.
10.17
What role does information technology
play in each of these businesses? How is it
helping them refine their business
strategies?
WALMART - The Role Of It
• The world’s largest private cloud computing centers:
increase the number of items available for sale on
Walmart.com from 1 million three years ago to 10
million today.
• Smart phone app: order items from Walmart.com.
• New subscription service: order items online, no
shipping fees.
• Improve links between its store inventory, website, and
mobile phone apps: order online, pick up items at
stores without waiting in line.
• Walmart’s website monitors prices at other retailers.
WALMART - How It Refines Strategies?

The world’s
Traditional, offline, biggest
physical store omnichannel
retailer.
AMAZON - The Role Of It
• Better smart phones’ platform: purchase products
and services online wherever they are.
• grocery offerings, with Amazon Prime, Prime Now,
Prime Pantry, and Amazon Fresh: offer delivery
times as short as an hour in some cases.
• Amazon’s Alexa voice-controlled digital assistant.
• Mayday: offer one-tap access to customer service
agents.
• Increasing the number of order fulfillment centers:
offer same-day delivery of purchases
AMAZON - How It Refines Strategies?

The world’s
Online retailer largest e-
commerce
retailer.
10.18
Will Walmart be successful against
Amazon.com?
EQUALLY SUCCESSFUL

 The world’s largest and most


powerful online selling machine  Massive warehouses.
 No physical stores to service its
customers, but it now has more  Improves its online presence.
than 100 warehouses.
 Huge investment in online
 Working on expanding its selection
of goods. business.
 a supply chain optimized for online
commerce that Walmart just can’t
match.
CONCLUSION

The epic battle between


Walmart and Amazon:
The success of both Walmart and Amazon.com
The success of both Walmart and Amazon.com

The wide
variety of
products
The The
success
successofofboth Walmart
both Walmart andand Amazon.com
Amazon.com

The wide Satisfying their


Fast delivery
variety of customers
and low prices
products needs

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