Amazon vs Wallmart

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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…show more content…
It deals with a variety of merchants and sells to customers. But the secret to discovering what makes Wal-Mart successful in studying its internal value chain. We should mentioned Walmart's competitive advantages from a value chain perspective. First of all it is a distribution capabilities: well-organized distribution, leadership of Walmart’s own distribution centers and “inside-out” location strategy. Second, is partnership relationship with merchants: integrates suppliers via IT & treats them well in terms of pricing, they are more business partners than “value takers”. Third, is advanced data mining: dynamic group and usage of customer buying behavior report. Forth, workforce culture and EDPL: customer-oriented workforce interested through substantial monetary contribution and belief in Walmart’s culture. And that’s not hard consider the fact that Walmart is almost 50 years old. Wal-Mart’s business strategy is to provide “Every day Lower Prices” or EDPL for all its products and services. Their organization, company culture, and supply chain management all support and emphasize this business strategy. Also, Wal-Mart use strategy of managing costs which include: budgeting payroll cost, saving on business travel cost, investing in technology, eliminating unnecessary costs. Another strategy that we have to mention is a strategy of managing growth, which consists of location and acquisition. And the last one

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