Amazon V/S Walmart Case Study | Ecommerce

Added on - Sep 2019

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Amazon V/S WalmartAmazon is known to be the largest e-commerce company while Walmart is the world's largestretailer undisputedly. In the past, these companies followed different tracks but are now on thepath of competitiveness. Clicks and bricks are seen to merge now. Walmart is thinking to start itsonline service and Amazon is trying to model a program in which they are gone to deliver theordered products on the very same day. Manufacturer and retailers are following the same path toreach the same level by changing their respective paths (Dawar, N., & Stornelli, J., 2013).As perconcern, the more successful approach might be that of Delivery of the products onthe same day at the customer place is more convenient to them than ordering and expensingagain to reach to the Walmart store (Skarmeas, D., Zeriti, A., & Baltas, G., 2016). Amazon isgoing to hire more contractors for the delivery purpose and aiming crowd- source delivery whichmeans ordinary people will be paid off to deliver the packages to the customers. Many pilotprograms are also organized to ensure the tract of the ordinary people to the delivery point.While on the other hand, Walmart may be offering the same day delivery to their respectivestores but the extra charges other than the order charges may deflect the purchasers to getattracted towards Walmart since it will take the time to the customer along with the money whileordering and reaching to the store i.e. place of order. On the other hand with the help of ordinarypeople, Amazon is also able to provide an extra source of income to them. Therefore, theAmazon approach is more enlightening than the Walmart idea (Chen, J. V., Yen, D., Dunk, K.,& Widjaja, A. E., 2015).Amazon is known to be significantly cheaper than other companies as it does not ask for‘local taxes' rather include only ‘use tax'. Many local businesses pointed amazon and forced tocollect sale tax because of that it faced many legal challenges. Amazon accepted to collect tax
this tax capitulation shifted a major part of companies operations. As company agreed to collectsale tax, it is allowed to set up regional ware houses that would let Amazon deliver fast in thelocality. Amazon will surely pull off the same-day delivery and that too not only in selectedurban market but throughout. Amazon is spending a lot of money to make it successful. Thecompany has promised to build local warehouses. It is investing much money in service anddistribution centers. Amazon is investing in shipping centers and also investing to make themmore efficient. This year it purchased a company which provided robots that improve shippingtime and reducing errors. These efforts seem to pay off to this success idea (Bell, D. R., Gallino,S., & Moreno, A., 2014). Same day delivery that to with no extra charge is a successful idea ascustomers will be more attracted to the cheaper and time consuming mean. Even if the prices areequal in clicks and bricks, the gratification is favored. It takes time and traveling consumesexpenses so anyone would prefer home delivery that too fast over the offline service (Tsay, A.A., & Agrawal, N., 2000).Amazon is already fast in the urban areas and expending such bigmoney will definitely make the company services fast in the non-urban areas.This is an era of internet and Amazon being the world’s largest e-commerce company canovertake the Walmart as the world’s largest retailer (Bell, D. R., Choi, J., & Lodish, L., 2012).Like other bricks, Walmart is working hard for its prevalence and positions and heading towardsthe online clicks business but Amazon threats it to the retailer level. Amazon is not competingfor the no. 9 or 10 but for the no. 1 position. Amazon started its life in 1994 as an online bookstore, being so successful in every single step Amazon has more business developmentstrategies, experience and more investment plans so as to lead the market flaunting. Walmart isjust trying to leverage a world class supply chain and the goal is shifted to merge clicks andbricks for the company while Amazon has reached far away by its investment strategies. One day
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