The battle between Amazon and Walmart

Surname1
Name
Instructor
Institution
Course
Date

Surname2
Question one
The battle between Amazon and Walmart has lasted for over a decade. It
reached climax at the beginning of 2018 when e-commerce went ballistic. Amazon
realized a huge growth in its total revenue transcending Walmart as the most valuable
global retailer. AT this time, overall retail sales in the US through Amazon was projected
to be about two hundred billion per year (Arnold, et al., 2018, p. 243). Furthermore, it
enjoyed a market share of the online market of about 40%. Amazon experienced
speedy growth attaining a huge market capital. It is clear that business strategies and
models employed by Amazon over the years ultimately yielded positive results.
However, Walmart is not ready to lose the battle. Its management are fashioning a
model to restore its glory at the top of the completion.
Amazon has always been rooted in the technology world. It was established to
explore internet even at the time when technology was still an emerging subject in
business environment. The management has always been interested in creating unique
and variety products for the customers.it started by selling books and steadily
developed to offer other products (Bustillo & Fowler, 2016). Walmart was primarily
established as retail stores. It expanded by setting up its stores in the small towns within
the rural areas. Eventually it was able to set up various distribution centers within the
United States. Later it diversified into e-commerce by introducing an online purchase
site. For us to establish which of these two companies is in a stronger and stable
position, then it is necessarily to keenly analyze some of the recent decision and efforts
they have undertaken to improve their sales.
Both Walmart and Amazon are great business entities with remarkable global
reputation. But Amazon is in stronger position. Amazon enjoys great revenues. It even
purchased Whole Foods for about thirteen point four billion US dollars in2017. This
expressed its clear intention to aggressively diversify into other offline business. This
was after successfully experimenting with Amazon Fresh doing grocery delivery since
2007. This made Amazon to gain favorable statistics on sales of grocery and habits
(Basker, 2017, p. 198). This posed a serious challenge to Walmart who is majorly
relying on the groceries to keep the business going.

Surname3
In the next ten years it will not be possible for Amazon to remain on the top spot.
Technically Walmart is in a better position for future success as compared to Amazon.
Walmart had acquired Jet.com at a price of three point three billion US dollars in 2016.
There was growth in their e-commerce revenue. Jet.com provided market to other
retailers without necessarily having its own store. It employed great technology which
provided discount to its customer as per the size order, distance to distribution store
(Chiou, 2018, p. 285). This attracted more customers and increased sales as
customers were saving money when they added more items to their virtual shopping
cart. It attracted particularly urban based young millennial customers. This customer
base made more online purchases often using mobile device. Walmart is exploring
areas that it previously dormant so as competitively compete with Amazon.
Walmart is slowly but steadily advancing in e-commerce market. In 2017 it
acquired Bonobos, an e-commerce giant which focused on high-end apparel for men
with creative distribution mechanisms. Additionally it bought other explicit retailers
namely Moosejaw and Heyneedle. This was in accordance to its resolution to offer high-
end e-commerce services to its customers (Zimmerman, 2019, p. 87). Walmart have
been earnest in looking for avenues for that can help with innovation for their products
to be accessible online. It just a matter of time before they catch up and surpass
Amazon in E-market share.
Walmart realized that Amazon is making advancement towards offline business.
But Walmart is more than ready with their physical stores, which are distributed all over
the nation, to challenge Amazon. Walmart holds fundamental advantage over Amazon
in the sense it is still enjoying its reputation from the brick and motor store (Polacco &
Backes, 2018, p. 92). IT main concern is to harmoniously merge its online arms of
business together with its physical stores. This will help to provide unique services to its
customers.
In September 2017, Walmart collaborated with Google so as to enable its
customers to make online shopping of Walmart products Via Voice shopping from
Google Express and Google Home. It furthered partnered with Uber, Lyft and Dely taxi
companies to do home delivery for customers’ right from the Walmart stores (Kumar, et

Surname4
al., 2018, p. 233). It has also launched how its employees can do the home deliveries.
Walmart have placed its self in a prime position for future profits. It is clear that its online
business is going to explode.
Walmart recognize that satisfactory customer service is key for it to regain its
position as the most valuable global retailer. Customers’ needs continue to increase,
this usually comes with a change in their behavior. By testing and learning customers’
expectations in real life is necessarily for improving customers’ experiences (Ives, et al.,
2019, p. 7). Walmart has innovated ways that make it easier to for customers to get
what they are in need of within the shortest time possible.
Great range of products are sold by Walmart. This helps the firm to reach a great
number of the general public. As it a sure thing for them to be in need of at least one or
two of the products being offered for sale. Not only has the firm dealt with groceries but
also electronics and office supplies and also clothing. Its policy of saving money for the
customers will go a long way to keep the business going in the long run. It targeted
client base is those will low income levels (Bustillo & Fowler, 2016, p. 432). The middle
class consumers who are much concerned with the price most likely to shop from
Walmart than from any other store. This gives Walmart lift towards financial freedom
and a great competitive advantage over Amazon.
Walmart bears enormous potential of marketing its merchandise in outstanding
preferred manner. The firm has natured a familial nature with its customers over the
years. This denotes that the business can segment the market and offer customer
tailored products to match the specific demands of consumers in the market. From the
cloud technology to keep historical selling data (Bensinger & Morris, 2017, p. 476).
Once they analyze these data it is able to establish the pattern purchase patterns of the
customers to stock rightly.
Question Two
At the time Walmart was advancing towards online business consumer behaviors
had changed drastically. The penetration of online shopping among consumers varied
across all groups of the product. This had significant impact on the struggling nature of