Analysis Of Amazon And Wal Mart

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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…show more content…
nb Wal-Mart 4,500 stores in the U.S. alone and was listed as the number 13 supply chain by Gartners ranking (quote USANFRAN) Wal-Mart uses its massive purchasing power as an advantage with its supplies, which also drives down costs, but Wal-Mart supply chain is much more sophisticated then its ability to negotiates with supplies. Wal-Mart focused on continuous improvement by investing more into emerging technologies to capture more of the e-commerce market that Amazon has dominated. Wal-Mart got into e-commerce more than a decade ago, but it’s online sales still account for just a fraction of its total revenue. Wal-Mart still lags Amazon in ecommerce but they are in a better position to take the fight to Wal-Mart online than Amazons ability to take the fight to retail stories. Wal-Mart does have a completive advantage over Amazon combining its stores, existing distribution centers, and new facilities into an integrated e-commerce channels. So a retailer store would support online purchases. To fulfill their customer’s needs this system would allow Wal-Mart to continue its value proposition by offering low prices. For example this system is able to achieve its low prices by routing orders to stores nearby. Store employees pick products from shelves, pack them into boxes and drop them into waiting FedEx and UPS trucks that zip off to homes a few miles away. (quote FORBES)
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