SUMMARY
This is my summary of this case of Amazon vs. Walmart are retail giants that aim to satisfy consumer needs in an all-encompassing way but also at the lowest price possible. Constant competition is inevitable and the two retail groups are consistently attempting to get ahead of the other. There are also differences between the two retailers. Both retailers are attempting to gain customer loyalty by being easily accessible to customers and offering a wide range of products. Walmart and Amazon compete with each other in almost every product category imaginable. This creates a constant price battle and special offers become a norm to entice customers. Amazon.com has grown from a small online bookseller to one of the largest retailing companies in the world, and easily the largest e-commerce retailer. The company has come a long way from its roots as a small Internet start-up selling books online. In addition to books, Amazon now sells millions of new, used, and collectible items in categories such as apparel and accessories, electronics, computers, kitchen and housewares, music, DVDs, videos, cameras, office products, toys and baby items, computers, software, travel services, sporting goods, jewelry, and watches. In 2010, sales of electronics and general merchandise comprised the majority of Amazon’s sales for the first time.
There are difference between Amazon and Walmart, Walmart as founded in 1962 and has its roots in traditional brick-and-mortar stores. Considered a retail giant, Walmart can be found in almost every neighborhood and is seen as a one-stop shop. Walmart has had to keep up with changing trends in retail and thus entered the ecommerce field. Walmart can be seen as a cornerstone of many neighborhoods. More stores are continuously opening, which provides the community with employment opportunities. Walmart employs millions of people in several countries. Walmart has many product categories for customers to satisfy needs and wants. More products are added on a frequent basis. Considering that Walmart is to be a single shopping experience, it is important for the retailer to have enough products in stock. Net profit for Walmart is high but year-on-year growth has started to stagnate.
And the Amazon was founded in 1994 as an ecommerce retailer. In recent years Amazon has seen tremendous growth in the online sphere. Additionally, a few physical outlets have also been opened to assist the public in picking own products. New products are constantly added to the e-commerce site consumers can find more than 50 000 additional products per day. Amazon is also in the process of automating the checkout process in its physical stores. The new stores are also offering no checkout system as it has become synced with the customer’s smartphone. Amazon focuses on providing convenience to customers. This convenience is addressed by offering as many products as possible from which to choose and by offering free delivery to members. Amazon had only a few thousand employees a couple of years ago. The tremendous growth in the ecommerce store has opened new employment opportunities at Amazon. There are more than half a million employees currently serving at Amazon.
CASE STUDY QUESTION AD ANSWER:
1.) WHAT CONCEPTS IN THE CHAPTER ARE ILLUSTRATED IN THIS CASE?
- The concept of e-commerce, and social networking are illustrated in this case. E-commerce refers to the use of the internet and the web to transact business. In this case, Facebook setup a website for users to create a profile and join various type of self-contained networks without paying any money. But base on its huge number of users, it offers opportunity fro companies to do advertisement on the site. And Facebook also uses its resource of user information to make profit.
The seller can reach their target customer when they pay for the information, and Facebook increase revenues by providing information of its user. That’s e-commerce. Social networking sites are a type of online community. Social networking is the practice of expanding the number of one’s business or social contact by making connections through individuals. Facebook is an example of social networking. The site includes a wide array of tools that allow users to connect and internet with other users, including messaging, groups, photo-sharing, and user-created application.
2.) ANALYZE AMAZON AND WALMART.COM USING THE VALUE CHAIN AND COMPETITIVE FORCES MODELS.
- Analyzing amazon and walmart.com using the value chain and competitive forces force models. Value chain model of the most common business level are:
Being a producer of products with low production costs.
Differentiate their products and services
Changing the scope of the competition either by means of expanding its market reach to the global market and to narrow the market.
The value chain model, a model which focus on primary and support activities that add value to products and services in which the information system is best applied to gain a competitive advantage.
Competitive forces model, used to describe the interaction of external influences, specifically threats and opportunities that affect the structure of the industry by: Provide technology that enables competitors to complete in terns of price and new players in the market. Improve the information available to customers I terms of increasing the bargaining power on price. Reduce power supplier. Substitute goods.
3.) WHAT ARE THE MANAGEMENT, ORGANIZATION AND TECHNOLOGY FACTORS THAT HAVE CONTRIBUTED TO THE SUCCESS OF BOTH WALMART AND AMAZON?
- Management of organization and technological factors that have contributed to the success of both Walmart and Amazon. Using information system to achieve the lowest price. At Walmart, low pricing and shelves are deployed using a legendary inventory replenishment system. Walmart to be the leading company in the United States thinner. Walmart is a continuous replenishment system sends orders for new goods directly to the supplier as soon as customers pay for their purchases at the cash register.
Walmart with continuous replenishment system is also an example of a system that is efficient, customer feedback is an efficient consumer behavior.
4.) COMPARE WAL-MART’S AND AMAZON’S E-COMMERCE BUSINESS MODELS. WHICH IS STRONGER? EXPLAIN YOUR ANSWER.
- The Comparison of e-commerce business models and the Amazon and Walmart.
Walmart:
Apply warehousing information system
Computerized
Manufacturing
Sales and processing online orders
Customer relationship management and supplier
Efficient distribution of goods
Having innovation
Dominate the retail market to the global marketplace
Amazon:
Provide a wide range of product and information about the product so that we can compare in terms of price, quality and testimonials form people who bought the product.
Exclusive service so that customers get convenience
The data storage system of a product that was once purchased by customers
The recommendation to customers who have purchased the items as well as items related.
According to the comparison of the above then I think Amazon id more effective and efficient considering some system implemented which greatly facilities the customers in the shop.
5.) WHERE WOULD YOU PREFER TO MAKE YOUR INTERNET PURCHASES? AMAZON OR WALMART.COM? WHY?
- I prefer to shop a Amazon because they have a system that allows consumers to find the items needed. Delivery system that is efficient and complete price list is available. Amazon also provides a list of the things we’ve bought before, and a recommendation of goods closer to the things we were looking for and need so that consumers have choice before making a purchase.
