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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,

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