Essay on Walmart And The External Environment

1389 Words May 2nd, 2016 null Page
Walmart is facing many challenges and of the challenges outline above stem from the significant changes transpiring in the external environment. Long a disruptor in the retail space, Walmart has historically managed changes in the external environment to gain a competitive advantage. From putting smaller retail establishments out of business, to upending the traditional supply-chain structure and creating the super-center concept, Walmart seemed impervious and unstoppable. However, perhaps no previous change was as significant or impactful as advent of the internet and e-commerce, and this change seems to be impacting Walmart in every area of its business operations. Thus, based on the analysis above, we believe that e-commerce and the related changes to the external environment is the central issue facing Walmart. E-commerce can be defined as connecting with a retail market with the internet as a medium. The primary competitive advantage of this form of sales medium is large variety, convenience for the consumer, low prices driven by transparent pricing (Lim et al., 2008). Additionally, online retailers are able to capitalize on the social aspect of marketing by utilizing aggregated customer reviews to reinforce purchasing confidence. Each of these aspects of e-commerce provide significant competitive advantages to e-retailers. In early 2000, Amazon was a small dot on the retail map with just $1.9 Billion in revenue. Walmart, on the other hand, was a retail behemoth…

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