Analyze Amazon and Walmart.Com Using the Value Chain and Competitive Forces Models

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Analyze Amazon and Walmart.com using The Value Chain and Competitive forces Models
2.1 Amazon.com
2.1.1 Amazon’s Value Chain Analysis
2.1.1.1 Primary Activities
2.1.1.1.1 Inbound Logistics
Amazon has the advantage of avoiding the overhead and carrying large amounts of inventory because it orders the books from the distributors.
They provide money and contracts to prospective authors and decide how many copies of a book to print. Typically a first run printing for a book varies from 5, 000 to 50, 000 copies. However, best-selling authors’ first run printings are generally set at around 300, 000 copies.
Amazon.com receives products from its distributors, partners, manufacturers, and publishers. Receiving is typically at the pallet or
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For example, an order for three items could require picks from three separate zones. In order to ship those items in a single box, manual or automatic sortation must be performed after picking to consolidate the items for shipment. Therefore, decisions regarding full-path picking and zone picking should take into account the tradeoffs in picking productivity to downstream sorting and packing requirements.
In the book publishing industry, the wholesaler of amazon distributes books to the thousands of retail bookstores located throughout the country. They take orders from independent booksellers and chains, and consolidate them into lot-order for publishers. Publisher supply wholesalers, who intern supply the thousands of retail bookstores throughout the countries.
There are more than 29, 000 private, public, and academic libraries in the United States. This market is crucial to publishers because of its stability and size. Since libraries order only what they want, this lowers the overhead costs associated with inventory and return processing, making this segment a relatively profitable one for publishers. Moreover, as hardcover trade books have become relatively expensive, many readers now borrow them from libraries instead of buying them. Industry experts observed that about 95 percent of general tiles published in any year sold less than 20, 000 copies; of that number, about 55 percent were purchased by libraries. Libraries

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