Walmart And Amazon : Business Model Essay

1089 Words Oct 12th, 2015 null Page
Walmart and Amazon are two of the biggest firms in retail marketing. Amazon is the leader when it comes to on-line retail, while Walmart is the name everyone knows when it comes to brick and mortar retail. Walmart has taken its business model a step further in selling merchandise on-line. Walmart was once a brick and mortar retail store, but over the years if you were to take a look at one could see a website that offers many of the same goods that a Walmart Supercenter would offer. One could even order merchandise on-line and pay for it at a physical Walmart location. However, Walmart is not the only retail giant stepping up its game. Amazon is also making changes to its on-line retail experience. They offer low cost shipping, same day delivery in certain markets, and is also offering the delivery of perishable goods in the Seattle market. Amazon is also trying to take a page out of the Walmart business model in offering the same site to store service that Walmart offers. Various economic factors are causing the changes to the business models of both Amazon and Walmart, which is the unemployment rate, and the rising cost of food prices. In the United States the unemployment rate is at 5.1 percent, according to the Bureau of Labor Statistics. Many Americans are out of work which would cause consumers to look for the lowest prices possible. Amazon is able to offer low prices because they do not have to pay the same amount of overhead in keeping up with the brick…

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