Mid-Term Exam Your Mele P Tuifua American Public University (Charles Town, West Virginia) Abstract This paper analyzes and compares the companies Walmart and Amazon. After explaining a brief overview of each company, we will look at how Walmart stays profitable by having a good relationship with suppliers, and how they keep their competitive position in the global market.
I. Introduction Walmart Stores, Inc. - the American corporation which was established in 1962, is well-know for the globe’s largest multinational retailer (Walmart 2016). Walmart owns a chain of grocery stores, discount department stores and hypermarkets with about 11,500 retail stores over 28 countries. In 1998, Walmart entered Germany with the acquisition of Wertkauf and Interspar chain (Louisa 2006). Despite having the strongest economy in Europe and the third largest retail market in the world, Germany was not an ideal place for Walmart to achieve its ambition (Knorr and Andt 2003). After nearly a decade struggling to grow, Walmart decided to pull out of German market in 2006 with the loss of one billion dollars (Mark 2006).
Wal-Mart is a powerful and influential grocery store in America and even in the world. It has a good reputation in terms of convenience, variety and good value for money. The greatest strengths of Wal-Mart are “the consumer understanding of low prices, their market clout, their competence in information technology, and their wide store and distribution network” (Internal Analysis of Wal-Mart 2015). The company has built good reputation among consumers during several decades’
The company "Walmart" is one of the most influential companies in the retail trade. For over 10 years it became the largest chain of retail supermarkets in the United States. In addition, the position of Wal-Mart are strong and in other countries. "Walmart", since its foundation, pursues a strategy of low prices. This is the strategy through which it can offer products cheaper than other competitors.
So, Wal-Mart is good for most Americans by providing drop an average of 10 to 15 percent in markets than other retailer provender. For example, more than 30 percent the disposable diapers purchased in this country is sold in Wal-Mart stores. 30% hair care, 20% toothpaste, and 20% pet food purchase at Wal-Mart stores by American customers.
Today, many people prefer to order products from Amazon instead of going to stores or malls. c. DESCRIPTION OF MY SUBJECT (AMAZON.COM): Amazon (Amazon.com) is the world’s largest online retailer and a prominent cloud services provider. The company was initially a book seller, then later it expanded to sell a wide variety of consumer goods and digital media as well as its own electronic devices, such as the Kindle e-book reader, Kindle Fire tablet and Fire TV, a streaming media adapter (Rouse, 2018).
The opinion piece published by the Los Angeles Times, “Amazon.com Is a 21st Century Deal with the Devil,” by Amy Koss states her central argument that Amazon is destroying jobs, malls, and stores in the outside world. I strongly disagree with the statement that Amazon is destroying jobs and stores because I believe Amazon brings convenience by allowing people to sell things they might not need that others do. According to Koss,” I also think that it is at the convenience of consumers who have a difficult time going outside because of a medical issue or if they’re just lazy because of the fact that they can order something and have it delivered to them in less than a few days with an even cheaper price tag. Online shopping on Amazon allows others to earn jobs as well because they might work from home and work for Amazon or they might deliver items to the consumer. Some people may even start their own online selling business on Amazon. Amy Koss even states that it’s a cheaper way of buying products ”’Do you want it cheap? Less than anywhere
Amazon’s competitive strategy is cost leadership. Amazon has achieved a lot on a great scale that it gets the best prices from its vendors so they can operate in very flexible and thin margins and sell their items easily at retail prices and make money. They also provide shipping products for a reasonable cheap price. They also have improved their warehouses by giving some space to other sellers who want to sell their items through Amazon. They differentiate and provide better quality than their competitors across the industry.
Vision, Mission Statement "Price Leadership Drives Global Performance" is the Wal-Mart visualization statement. The management of Wal-Mart emphasises on price leadership in every market since pricing strategy is the direct approach to reach performance and attract customers. In order to implement price leadership, they stated "Save Money, Live Better", which remains as relevant now as it was in 1962 by Sam Walton. The mission is that everybody is able to purchase products in Wal-Mart because the stores offers low price products to them.
Walmart was founded in the summer of 1962 by Kingfisher, Oklahoma native Sam Walton. Although Walton’s original vision for the store was relatively modest, the half century since its founding has seen Walmart morph into one of the biggest companies in the world. Today headed by one Doug McMillon, Walmart boasts more than 5000 stores in the United States of America alone and employs more than 1.5 million people. Walmart is undoubtedly an American institution, yet each Walmart store feels like its own little country. Walmart seems to have its own laws and customs and the people who shop their on a regular basis appear almost primitive in their behavior as they go about raiding the store’s shelves and wrestling with fellow customers for discount flat screen televisions and bulk packages of two-ply toilet paper.
Segment 1 – Wal-Mart’s Revolutionary Power 1. How much was Wal-Mart’s sales figure quoted in the beginning of the segment? Wal-Mart recorded $256 Billion in sales and is the first company in the world to record such a figure on sales. 2. How many Americans stream into Wal-Mart on a weekly basis?
The business model of Amazon ensures that the product is available for the customer at the best possible price. The fast shipping strategies also ensure customer satisfaction. These aspects offer an excellent value proposition to the customer. Since Amazon is present globally and is successfully into business for a long time period, the strategies of Amazon are sustainable.
1. Primary Target-Market — main consuming group/Secondary Target-Market —additional sales potential Amazon’s target customers are people who have access to the internet and have financial paying tools such as credit card, debit card, paypal etc. futher, the firm’s clients do not stay within the united states only. Amazon has reached its hand to online customers in other continents. Further the company’s prime program seems to appeal more to older shoppers than the younger ones since data shows that individuals whose age 40 or more are more loyal to the service than people whose age is less than 40.
There were many big retail market industry, and Walmart was only able to capture 1.1% of the market. All of Walmart’s competitors were able to cut the price from the regular price, especially Aldi, which was their biggest rival. This reduced their value proposition of “everyday low pricing” to nothing but an empty promise. Thus given their market position and the presence of already popular and established competitors, the rate of survival had been low from the very beginning.