Amazon vs Wallmart Essay

2726 Words Nov 22nd, 2012 11 Pages
Amazon vs Wallm

Amazon vs. Walmart Alexandra Tikhonkikh Professor N. Kentish Metropolitan College of New York

The case study Amazon vs. Walmart is illustrated several concepts, which was described in the chapter. One of them is a sales Revenue Model where companies get revenue by selling goods, information, or services to customers. Like Amazon.com which sells books, music, and other products. Another one is e-tailer model. It is close to the typical bricks-and-mortar storefront, except that customers only need to connect to the
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Let’s try to consider a Wal-Mart position from the competitive model as well. Competition among rivals is fairly weak. The market is crowded but Wal-Mart has the lowest costs, prices, profits, and market share. The warning of substitute products is also weak. Wal-Mart exerts a great deal of effort in making sure they are innovative and meeting customer requests. The bargaining power of suppliers is weak as well. For most producers, Wal-Mart would be their largest account. The bargaining power of buyers is also weak. There is a very broad base of customers and a meaningful demand for low prices. The threat of new entrants is weak. Wal-Mart has a scale of operation that is very important, it would take years, maybe even decades, for a new company to be on the same level. Even prominent companies today would have really difficult time matching the costs and prices Wal-Mart provides. A more sophisticated analysis of Wal-Mart’s internal value chain shows that Wal-Mart is hold in esteem to technology and was the first merchant, which uses bar codes. It also uses satellite connections to communicate with all its stores. Moreover, Wal-Mart has integrated its POS, inventory-control, RFID, and other logistical technologies to haste product delivery, improve security and decrease costs. Besides It has developed regional obtaining centers in addition to its legendary center in Bentonville, Arkansas. Wal-Mart even has one in Shenzhen, China. Merchants set up

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