ipl-logo

Walmart Case Study Amazon's Business Strategy

711 Words3 Pages

Investors in Wal-Mart were aware of the obstacles that the giant retailer would face due to the changing consumer preferences and behaviors. However, the financial reports showcased that its online strategy was successful. At the end of the second quarter in 2017, Wal-Mart reported revenue of $123.4 billion, which was an increment of about 2.1% over the previous year quarter. There was also an increase in comparable sales by 1.8% year over year.

Wal-Mart has significantly focused on structuring its online sales, while using its already well-established brick and mortar stores and excellent supply chain and logistics to its big advantage. One example is the company's offer of free shipping on orders that exceed $35 and offers a price-cut …show more content…

It has been able to identify the dynamic wants of customers and compete with physical store rivals as well as its E-Commerce rivals such as Amazon. This is well showcased from Wal-Mart’s newest strategy of keeping its online prices almost on par to that of Amazon’s. It was seen that Wal-Mart kept its products priced just 0.3% higher than Amazon's listings, clearly exhibiting the company's endeavors to gain a significant market share during the festival …show more content…

It caters to the widest segments of customers by tapping multiple segments of consumers at the same time. It constantly reviews and monitors changes in the market and consumer tastes and makes changes to its offering accordingly. Wal-Mart segments its customers on regional basis. Amazon is has made its presence in over 100 countries. Amazon caters to clients in Urban as well as rural population centres. On the basis of demography Amazon deals with deals with male and female consumers who are mainly students professionals and employees. On the basis of customer loyalty, Amazon on the behavioral front identifies its customers as highly dedicated and longterm, not so dedicated and those who are indifferent. It serves a clientele looking for good pricing and with the widest choices available. Amazon also divides its consumers on the basis of their personalities, namely tolerant, resolved and enterprising. There is also a division on the basis of users of a product; such as first timers, regulars and ex users. Another important basis is social class of its consumers: lower class, middle as well as high class. (Dudovskiy,

Show More
Related
265 Words | 2 Pages

So, Wal-Mart is good for most Americans by providing drop an average of 10 to 15 percent in markets than other retailer provender. For example, more than 30 percent the disposable diapers purchased in this country is sold in Wal-Mart stores. 30% hair care, 20% toothpaste, and 20% pet food purchase at Wal-Mart stores by American customers.

Read More
760 Words | 4 Pages

1. In the broader context (not specific to Dollar General), what is KKR’s investment strategy? What are the challenges KKR will encounter to make its investment in Dollar General successful? How could KKR add value to Dollar General?

Read More
1637 Words | 7 Pages

Walmart was founded in the summer of 1962 by Kingfisher, Oklahoma native Sam Walton. Although Walton’s original vision for the store was relatively modest, the half century since its founding has seen Walmart morph into one of the biggest companies in the world. Today headed by one Doug McMillon, Walmart boasts more than 5000 stores in the United States of America alone and employs more than 1.5 million people. Walmart is undoubtedly an American institution, yet each Walmart store feels like its own little country. Walmart seems to have its own laws and customs and the people who shop their on a regular basis appear almost primitive in their behavior as they go about raiding the store’s shelves and wrestling with fellow customers for discount flat screen televisions and bulk packages of two-ply toilet paper.

Read More
725 Words | 3 Pages

Due to the business model of Walmart, in general, they continue to have lower expenses related to selling, general and administrative. Target has prided itself on the value they bring with exceptional customer service, with store that are basic, and only offer the bare necessities. Walmart however, focuses on its low cost offerings, and lacks in such service or décor. This shows in the financial statements where SG&A is 20.60% of sales revenue for Target, while Walmart brings costs down to approximately 18.75%. Walmart is able to operate with less employees working in the stores that have lower salaries, and lower expenses related to operating each store.

Read More
560 Words | 3 Pages

Since the company was founded as a corner store, the company’s business plan has always emphasized on expect more, pay less brand promise that sets it apart from its chief rival, Walmart. Although, Walmart is known for its low prices and offers a large selection to its customers; it’s customer service is often found to be nonexistent. This

Read More
1125 Words | 5 Pages

Records show due to Walmart is all around the place, gross domestic prices have gone up in an amount. Even though Walmart set up bad labor and gives bad opportunities to their employees, customers still thinks it is very convenient due to the low price. Since it is all around the corner, it is easy for people to walk in and walk out in any minute. The shopping carts are also a useful tool for customers to pick up their products, they also have small drive shopping carts for disables so they can even come to the store without any help. Nothing is better than Walmart in my opinion.

Read More
1309 Words | 6 Pages

This added to the appeal of Walmart as a one stop location to shop for everything, at the lowest market prices Walmart’s success, although it has had major contribution, wasn’t only from the “buy cheap, sell cheap” business model. Walmart was becoming so efficient and good at moving goods that the system in place for labeling and pricing wasn’t good enough. This is where Walmart’s effect in retailing technology and information weigh in.

Read More
1215 Words | 5 Pages

This seems like a smart marketing trick that is surely used in other retailers. And what really matters here is that the average American or even those who cannot afford buying things from regular superstores can actually enjoy shopping at Wal-Mart and buy just anything they need at preferential prices. This is the result of Asian-based imports where cutting costs helps Wal-Mart sell at the lowest prices possible thus being able to serve all classes of the

Read More
849 Words | 4 Pages

Walmart, Amazon, and EBay 1. Analyse each of these companies using the value chain and competitive forces models. The value chain model of Amazon in itself is internally and operationally the best that adds value and maintains competitive advantage. The primary activities include Inbound logistics for example quality control, receiving, raw materials, control and supply schedules; Operations for example packaging , maintenance, quality control; Outbound Logistics for example

Read More
1532 Words | 7 Pages

1. Primary Target-Market — main consuming group/Secondary Target-Market —additional sales potential Amazon’s target customers are people who have access to the internet and have financial paying tools such as credit card, debit card, paypal etc. futher, the firm’s clients do not stay within the united states only. Amazon has reached its hand to online customers in other continents. Further the company’s prime program seems to appeal more to older shoppers than the younger ones since data shows that individuals whose age 40 or more are more loyal to the service than people whose age is less than 40.

Read More
874 Words | 4 Pages

During the past decade, Wal-Mart, Kmart and Target three retail giants generate a combined sale of $123 billion (External Analysis Wal-Mart 2015). The success of the retail industry contributes largely to the advancements of science and technology and reduced costs. In the future, the success of Wal-Mart still relies on consumers’ concerns for value shopping and saving money. The company should pay close attention to the needs of customers and provide high-value and low-price products for consumers. Industry environment analysis includes five aspects: threat of new entrants, power of suppliers, inter-firm rivalry, power of buyers and threat of substitutes.

Read More
2015 Words | 9 Pages

Introduction The mass merchandiser Wal-Mart, founded 1962, is stated as the world largest retailer with over 11,100 stores in ~ 27 countries. The market is over $275 billion and Wal-Mart’s rank among the top ten companies in the S&P 500 index. Wal-Mart’s philosophy is to provide everyday low prices and superior customer service. They invested in its unique cross-docking-inventory-system, which is one of the largest supply chain in the world.

Read More
829 Words | 4 Pages

According to Lore, no. Lore told CNBC that they’re planning to “get more aggressive” on pricing. Walmart bought Lore’s startup, Jet.com, last year and brought him onboard to revamp their e-commerce strategy. Both Walmart and Amazon are bringing unique attributes to the e-commerce battle. With thousands of locations all over the country, Walmart has a physical presence that Amazon could never

Read More
927 Words | 4 Pages

From children to adults, anyone can be a customer of Amazon and providing products that can cater to the requirements of each age group is a tough task for the management. The quality expectations, the price range and the brand preference of each customer vary and the company needs to provide a large range of choice to become a market leader. Many customers shop according to the price range and budget therefore, providing a decent range in each price range is again considered to be an important parameter for Amazon. User experience is another important parameter that needs to be analyzed on a regular basis, as customers will not prefer any shopping site which gives hard time to them while buying and making payments online. A payment gateway is another factor that makes a major difference for the customers in choosing the site they prefer to shop.

Read More
1105 Words | 5 Pages

Today, many people prefer to order products from Amazon instead of going to stores or malls. c. DESCRIPTION OF MY SUBJECT (AMAZON.COM): Amazon (Amazon.com) is the world’s largest online retailer and a prominent cloud services provider. The company was initially a book seller, then later it expanded to sell a wide variety of consumer goods and digital media as well as its own electronic devices, such as the Kindle e-book reader, Kindle Fire tablet and Fire TV, a streaming media adapter (Rouse, 2018).

Read More

More about Walmart Case Study Amazon's Business Strategy

Related Topics

Open Document