Wal-Mart versus Amazon
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1. analyze the case study comparing Walmart and Amazon's business models and business strategies,
2. explain the role that information technology plays in each of these businesses and describe the role of the various
IT professionals involved in this case,
3. explain how IT helps influence Walmart and Amazon's organizational strategies,
Your response must be at least two pages in length and in APA format. . All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying APA citations.
Source
Laudon, K. C., & Laudon, J. P. (2016). Management information systems: Managing the digital firm [VitalSource
Bookshelf version] (14th ed.). Retrieved from https://bookshelf.vitalsource.com/#/books/9781323309568/
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Solution Summary
This posting gives you a step-by-step explanation of the case study "Who's The World's Top Retailer? Walmart and Amazon Duke It Out" . The response also contains the sources used.
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In accordance with BrainMass standards this is not a hand in ready assignment but is only background help.
Step 1
Wal-Mart business model is to operate chains of hypermarkets, discount department stores, and grocery stores. It has more than 11,500 stores and clubs in 28 countries under 63 different names. Wal-Mart uses the low price strategy and obtains low prices from suppliers all over the world because of its large volume of purchases. it has established low cost leadership in brick and mortar stores.
Amazon.com has an e-commerce business model. It has become the largest internet based retailer in the world by total sales and market capitalization (a). The beginning of amazon.com was an online bookstore and later diversifying to sell DVDs, Blu-rays, CDs, and videos. Even thought its growth has been mainly through selling through the internet, it wants to capture a larger portion of the market. Amazon's competitive advantage is that no other online retailer can match Amazon's breath of selection, low prices, and fast/reliable shipping.
The strategy of Wal-Mart was cost leadership and it achieved it through bulk purchases, global sourcing, and negotiation strength. In contrast, Amazon dominates the shopping online market. it has widespread warehousing facilities and a very well developed distribution network meant for fast shipping (b). The ...
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