M7 Quiz 7.1 CASE STUDY QUESTIONS: Question 1 Analyze Walmart and Amazon.com using the competitive forces and value chain models. 1. Competitive Forces : Through its entrance into the online shopping sector, Walmart joins a different segment, compete directly through online retailer Amazon, a revered e-commerce pioneer. As for the majority of his career, Walmart concentrated on traditional stores, online shopping capability became a problem only after Amazon started gaining its market share. 2. Walmart and Amazon build competitive programs by giving their clients an alternative to their rivals. Most of Their clients are now Ebay consumers because they with greater buying leverage in their customer's pockets, decreases profits because encourages them to implement certain technical and organizational improvements in order to improve their strategic edge. The opportunity to buy comparable goods at lower rates is a crucial component. 3. Regardless of the breadth of their market with similar goods, both Amazon and Target had amazing developments on their vendors. It allows them all to rising rates charged for the goods of their vendors and then give their consumers the savings. 4. Value Chain model : Primary activity : The main operations of Target and Amazon are to create factories in order to stock the merchandise in near proximity to its intended buyers. In their outbound delivery, where the two firms vary. The main industry for Amazon is to deliver goods to consumers at distribution centre, or to function as technical intermediaries for third party retailers wanting to market their items to a vast public. Although Walmart is growing its online capability quickly, its online market capitalisation is still much lower than Amazon, and hence less competitive in the distribution of door delivery. Through Amazon Prime , For example. Customers may expect orders at reduced rates usually within 1-2 working days Question 2 Compare Walmart and Amazon’s business models and business strategies. Business model : Walmart operates department outlets of varying locations globally and is involved of money saving. In the delivery of a wide variety of premium goods and services at regular low rates, Walmart wins the confidence of its customers each day while cultivating a society that recognizes each other and celebrates shared honesty, loyalty and diversity. Walmart employs promotional strategies in which goods are sold every day at a fixed price to guarantee that buyers will not adjust their rates through daily advertising. The service of Walmart comprises of three segments: Walmart U.S., Foreign and Sam's Club. The US division of Walmart is the largest market group. Business strategies : While the rate of buying in the US is falling, Walmart is reportedly slashing store expenses and investing increasingly on e-commerce. Recently, Walmart has the the 2015 outlook by projecting 2-3 growth in contrast with the prior projections of 3-5%. Walmart has plans to introduce several improvements in its stores in addition to focusing further in its online sector. Walmart's three key tactics for market enhancement: Enhancing consumer service, stronger quality competition , and Internet services Question 3 What role does information technology play in each of these businesses? How is it helping them refine their business strategies? WalMart now operates with an app that helps shoppers to buy products from Walmart.com if a retail retailer does not have them in a warehouse which attempts to cover the void in the delivery in their shops and to prepare for consumers to make a buy and receive them without being obligated to catch up with them. On the website of Walmart, inventory is tracked and rates are changed accordingly. More third-party vendors are also required to be competitive with Amazon and lower prices. On the other hand , Amazon now stays ahead of Walmart, through its software, which allows consumers to search and purchase items from amazon, as well as provide concierge service and customer assistance for customers 24 hours a day. The phone can even be led to a product anywhere and ordered through Amazon. Question 4 Will Walmart be successful against Amazon.com ? Explain your answer. I assume like both would be similarly effective, but now we see only Walmart adopting his home delivery plan and returning in 30 days as amazon, except then they were introduced by amazon itself in the first days, and I think those are two of Walmart's main success points. Over the last two decades, Walmart placed a great focus on the launch of its entirely new Supercenter-a tactic that has also diverted the company from the latest eCommerce phenomenon. Yet it seems like this was a hidden gift. I believe that Walmart will not be as successful as Amazon . Just analyzing Walmart in its current state , it is trying to play catch up with Amazon in the online retail market while Amazon is trying to be the most successful company in e-commerce . Walmart might be able to hold its own against another retail store , but Amazon is going to be more successful . Walmart can maintain its retail stores . That is the one point that Walmart has that Amazon does not have , but that is not the goal of Amazon . Amazon does not have the storefronts , but it does have an extensive and advanced distribution network that is continuing to grow . These networks are advancing their ability to maintain their two - day shipping and now one day or same day shipping is available with some of their stock . Amazon is buying major companies to expand its reach into other industries and provide its customer with an expanding section of goods . They also allow third - party sellers to use their website . Walmart is doing almost the same thing , but they are buying up technology companies to help with their online presence . Amazon also has their market of products for Amazon Web Services which I don't see Walmart ever competing with them in this market . Amazon also has its own consumer electrons which is catching on fast . They are creating their own smart technology ecosystem which Walmart does not have . Amazon is also trying out the idea of opening its own storefronts . If Amazon is able to figure out how to use their storefront and it catches on Walmart has one other thing to worry about . I believe it will be hard pressed from Walmart to pass Amazon when it comes to overall e-commerce. I assume like both would be similarly effective, but now we see only Walmart adopting his home delivery plan and returning in 30 days as amazon, except then they were introduced by amazon itself in the first days, and I think those are two of Walmart's main success points. Over the last two decades, Walmart placed a great focus on the launch of its entirely new Supercenter-a tactic that has also diverted the company from the latest eCommerce phenomenon. Yet it seems like this was a hidden gift.
