Walmart Inc. and Amazon.com: A Comparative Analysis of Strategies

This report provides a comparative analysis of Walmart Inc. and Amazon.com, focusing on their competitive strategies, financial performance, and market positions. It examines the strengths of Walmart, including supplier relationships and operational efficiency, and contrasts them with Amazon's advantages, such as its vast selection and third-party sellers. The report utilizes VRIO analysis to evaluate the resources and capabilities of both companies, highlighting Walmart's cost leadership strategy and Amazon's focus on diversification. The financial analysis includes metrics such as net sales growth, profit margins, return on equity, and return on assets, offering insights into the companies' performance. Furthermore, it discusses inventory management strategies and the impact of customer demographics. The report aims to provide a comprehensive understanding of the competitive landscape between these two retail giants and their strategic approaches to the market.

Running head: WALMART INC. TAKES ON AMAZON.COM
Walmart Inc. takes on Amazon.com
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1WALMART INC. TAKES ON AMAZON.COM
Walmart Inc. takes on Amazon .com
Walmart has the biggest strength on the suppliers and also on the competitors which points out
the implementation of the practices along with operating margins. Amazon competes with the
strength of Walmart with the competitors along with the selection of the inventory. The third part
sellers that are associated with Amazon mainly provides low cost structures which provides
some competitive advantages over the rival companies. The VRIO analysis of Walmart mainly
points out the competencies to grab the market power on the competitors along with success on
the newly implemented practices. The VRIO analysis of Amazon also points out the
competencies which includes low cost structures, using of third party sellers and selection
process that is unique in nature.
The business strategy that is pursuing by Walmart points out the business objectives which
would be helpful in their growth and development for future years. The main focus of Walmart is
to maintain the strategies of cost leadership that gains competitive advantage over the
competitors. The corporate strategy that is followed by Amazon help in boosting up the revenues
along with overall profitability. This company is focused on the diversification of the strategies
which assist in managing the business activities in an efficient way. In addition to this, Walmart
is more tends towards the management of the inventory which assist ion reducing the shortage of
inventory during business process. The following table shows the financial analysis of both
Walmart and Amazon.
The financial analysis of Walmart Inc. includes the net sales growth for 3 %, profit margin 1.99
%, return on equity 12.7 %, and return on assets 6.9 %. Average household income is 42.2 and
average customers are around 56000. On the other hand, Amazon.com includes the net sales

2WALMART INC. TAKES ON AMAZON.COM
growth for 30.8 %, profit margin 1.71 %, return on equity 10.95 %, and return on assets 2.31 %.
Average household income is 40.2 and average customers are around 62900.