Comparison of Walmart and Amazon Business Models and Financial Stability

Running head: E-COMMERCE AN MARKETING 1
Report on Walmart and Amazon
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E-COMMERCE AND MARKETING 2
Introduction
The paper presents an analysis of the various occurrences that are existing around two different
companies or firms. Namely, these firms are the Amazon and Wal-Mart. The major focus,
therefore, will be put on issues concerning the different business models that are perceived by
each firm, financial stability comparisons together with analyzing the ways through which these
companies manage their information. To begin with, a business model refers to a sttra5tegyy or
plan that is put in place to make a profit. A proper business plan or model should be in a position
to identify the products and or services that are sold and to which market category. The
discussions and explanations relating to the business models undertaken by each of the chosen
companies area elaborated upon as below.
Walmart business model
The Walmart company has over the years been characterized with its well operation on the three
types of business units or segments. It has therefore been through such segments that the
Walmart Company attained well over an estimated $ 495 in terms of market sales during the year
of 2018 (manu,2016). Out of the total earnings, about 64% of the revenues were generated by
Walmart US, 24% of the incomes were obtained from Walmart international segment, and the
only 12% of the revenues were generated from the Sam’s club segment (Lang et al, 2012). Apart
from the above strategies of the Walmart business, there are other additions that are used
especially on concerns related to the internet and online company business. For instance, the
company is currently using two strategies and these include the innovation and the strategy to
build k instead of buying (Dages et al, 2016). These are the two major strategies that the
company is using in developing its business model on the market. The major driving or pushing

E-COMMERCE AND MARKETING 3
factor for such technological strategies is to obtain and increase market share. The change has
also been out of the pressure from other competitors such as the Amazon that have embraced
technological changes and methods of marketing. From using such methods and strategies, the
company has eased access to its estimated 260 million customers globally and in about 27
nations or countries. Therefore, one can firmly conclude that without the development of online
strategies the company would not have had the capacity to achieve such a wide market in a short
period.
Amazon business model
With the increasing need to satisfy customer convenience on the market, companies such as the
Amazon have taken up strategic decisions to maintain the growing e-commerce mode of trading
on a global scale. This is, therefore, a valid explanation for the growing trends in e-commerce,
online trading in the global market. Almost similar to the Walmart company amazon operates a
widely diverse business model. The model includes the use of several different strategies and
techniques of service delivery to the company customers. The strategies that are used by the
amazon include online stores, physical stores distribution agents or the third-party sellers of the
goods. Because of the diverse business model that is used by the company, financial benefits are
highly expected. For instance, the amazon contributed to a percentage of about 70% of global
trade during 2016 (Chugh, 2018). The company financial prospects show an estimated $ 356
billion in revenues for the year of 2022 whereas Walmart was well over a trillion dollars at least
by the year 2018. By 2011 the amazon company had kick-started its online marketing strategy
and through this particular approach, the company had a vision and objective of easing customer
access to different marketing channels. The company effectively developed electronic