Analysis Of Amazon And Wal Mart

1614 Words Jun 26th, 2016 7 Pages
Successful companies do not all pursue the same strategies. This is evident with both Amazon and Wal-Mart, both are direct competitors but each focuses on a different market channels and provide different customer value proposition. A business strategy characterizes a company’s unique position in the market and distinguishes the firm ’s value proposition from that of its competitors. Qupte Simci levi Such a unique market position drives and depends on operations and supply chain strategies. Unfortunately due to the effiency curve, no company can be both highly efficient and extremely responsive. This is where companies need to make trade-offs decisions. Of course, trade-offs need to be made not only between efficiency and responsiveness but also between flexibility and cost, cost and exposure to risk, inventory and service levels, and between quality and price. This is where Wal-Mart and Amazon are opposites. Neither tries to compete with each others value proposition Amazon strength is related to its choice and product availability. Amazon does not focus on price where as Wal-Mart, low prices that directly align with its operations strategy by allowing its customers to have a large variety of products at low prices. Both Amazon and Wal-Mart have excellent operations that are able to quickly move products to their customers and meet their customer’s expectations. However, Amazon does have a supply chain completive edge over Wal-Mart. It is because of Amazon’s ability to…

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