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
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The direct Amazon-to-buyer sales approach is really no different from what happens at most other large, online retailers except for its range of products. we can find beauty supplies, clothing, jewelry, gourmet food, sporting goods, pet supplies, books, CDs, DVDs, computers, furniture, toys, garden supplies, bedding and almost anything else you might want to buy. What makes Amazon a giant is in the details. Besides its tremendous product range, Amazon makes every possible attempt to customize the buyer experience.
The other main feature that puts Amazon.com on another level is the multi-leveled e-commerce strategy it employs. Amazon.com lets almost anyone sell almost anything using its platform. You can find straight sales of merchandise sold directly by Amazon, like the books it sold back in the mid-'90s out of Jeff Bezos' garage -- only now they're shipped from a very big warehouse. Since 2000, you can also find goods listed by third-party sellers -- individuals, small companies and retailers like Target and Toys 'R Us. You can find used goods, refurbished goods and auctions. You could say that Amazon is simply the ultimate hub for selling merchandise on the Web, except that the company has recently added a more extroverted angle to its strategy.
2.1.1.1. 3 outbound Logistic
Amazon.com's DC outbound processes support the fulfillment of customer orders placed through Amazon.com or affiliate websites. Picking, sorting, packing, and
Amazon believes in keeping its marketing plan simple in order to be effective. Consequently, their marketing plan is based upon the 4 P’s (product, price, place, and promotion). Amazon’s product is to provide an unparalleled selection of any item that exists on the planet. Its prices are extremely competitive and often lower than traditional stores and it is more convenient for people to shop on the internet (place) than it is in a physical location. Finally, its promotion emphasizes big ideas, innovation, technology, and customer centricity, enabling it to market itself as the most convenient place for consumers to shop and satisfy their needs (Kerin & Hartley, 2015). This strategy targets
When we compare with amazon.com we will find same features and can sell our goods at amazon.com
They offer products are their website that are available in traditional retail outlets, but they are able to offer products at competitive prices. The majority of the products that Amazon.com sells are products that are available in stores. They sell brand name merchandise that people are already familiar with. So people come to Amazon.com, and they buy a product that they have already seen in stores. It is easier to sell a product online on a site like Amazon.com when they offer brands that consumers already are familiar with. Amazon.com has built a brand name that customers can trust.
Amazon.com was founded as an online bookstore in July, 1995 and went public in May 1997. In June, 1998 Amazon.com launched its music store. Since then Amazon.com has become the most prominent Internet retailer. Over time Amazon.com has added several products including electronics, health and beauty products, house wares, kitchenware’s, music, tools, toys, videos, and several services such as auctions, 1-Click ordering, and zShops. Amazon.com has expanded nationally and internationally and now operates several customer service and distribution centers in the United States and international web sites that
Amazon.com was founded in 1994, it started by selling books online. As it grew, the company started offering various products and services. Some goods include: DVDs, videos, electronics, camera and photography, clothing apparels, shoes, and so forth. Other retailers have merged with Amazon.com to offer diverse quality of items based on different degrees of usage, such as new, refurbished, and used items. The company 's headquarter is in Seattle, Washington. It has six global websites that serves customers that are based in the United States, the United Kingdom, Germany, France, Canada, and Japan. Their website features: e-mail order verification, customer review on products, and one-click shopping.
They have not limited themselves to online books and retail, they have media, cloud, service etc. “The company that started out as an online book seller has gained credibly as a producer of TV programs and movies. Amazon web services, provides data servers to big companies, this is
First of all, Amazon was an early exploiter of online technologies for e-commerce, which made it one of the first online retailers. Amazon has developed a customer base of around 30 million people. Since it was founded, Amazon has been expanding its product categories. As a result, not only can customers buy almost everything they need in regular life, but also they can open their own business on Amazon. Secondly, Amazon carefully records data
* There is Low differentiation in Amazon’s industry in terms of online auctions as customers can easily switch between them and E-Bay as well as online book sales as they can switch to rivals such as Barnes and noble, although Amazon was able to undercut their rivals as they competed on price, By having no high costs in terms of storage of stock or buildings they could pass this benefit onto customers.
Amazon.com is the biggest online retailer in the US, with about three times the Internet deals income. Amazon.com was established by Jeff Bezos in 1994 and he propelled it online in 1995. In spite of the fact that they for the most part are a retail location, the organization dispatched Amazon.com Auctions, a web closeout administration, in March 1999. Amazon.com has two distinctive value focuses for offering things on their site. One is called selling Individual, which is for individual merchants who wish to sell under 40 things a month, which cost $0.99 per deal in addition to a referral charge and a variable shutting expense for every item sold. The other alternative is called selling Professionally, which is for expert dealers who hope to offer more the 40 things a month, and has a month to month expense of $39.99 in addition to referral charges and shutting expenses for every media item sold.
Amazon has its hands in numerous business realms. They offer seven main areas of products and services according to their 2015 annual report. They participate in retail ranging from business to consumer, business to business, consumer to business, and consumer to consumer exchange of products throughout their many channels of commerce offered via Amazon.com, Amazon Auctions, and the Amazon Affiliate program which allows for partners to have pages on Amazon that they can earn a moderate
Amazon’s core competencies are in its ability to effectively use and develop technology to drive site traffic and enhance the customer experience. Their distinctive use of website real estate coupled with their ability to leverage their brand and effectively use that leverage to deliver low prices and high quality products, makes them a leader in online retailing. Their partner brands and their ability to adapt and recognize deficiencies enable them to effectively cut out the middle man, or at the very least, partner with them.
Amazon is a company that sells many open product categories online by allowing customers to take the time to search and shop through the product offerings. Many product categories that are offered on Amazon may include device accessories, kindle devices, beauty, books, electronics, health & personal care, etc. The foremost product category that can offer the greatest advantage compared with a retail store chain is most definitely the books category. Reason to this is that the company has expanded the customer’s online shopping experience by offering such a wide range of physical and electronic books, depending on the preference of the customers. They are able to search for the top-rated selling
Amazon operates using a web-based platform to sell books. The web-based model targets a global market, has reduced overhead costs and a shorter operating cycle as compared to brick and mortar businesses such as Barnes & Noble and Borders. Amazon’s online model has a superior inventory
Amazon¡¦s idea of selling books online on such a grand scale, though, has brought online retailing to a new level. Following is a look at Amazon¡¦s online retail process and how information systems played a role in the overall process.
Amazon, is one of the most widely used online shopping websites as well as a name that people trust for most of their online shopping needs. The Amazon website is a world on its own, with millions of products based on every customer need. It is not only that it has millions of products to choose from