Sample Management Essay Paper on Amazon Vs Wal-Mart

Amazon Vs Wal-Mart

In comparison to the two companies, Amazon and Wal-Mart, the approach by Wal-Mart will more successful compared to Amazon’s strategy. Wal-Mart’s expansion of its e-commerce capabilities and leveraging would be able to capture more customers. Currently, most customers prefer to shop online in order to cut on transportation costs (Mc Carthy, & Perreault, 2002). Thus, Wal-Mart’s expansion of its eCommerce capabilities would seek to gain a market share in the online platform.  On the other hand, Amazon, which has a large customer base in the online platform, would face strong competition in the creation of home distribution centers (Chaffey, 2007). Companies delivering products home are many creating a stiff barrier and competition for Amazon entry into the distribution channels.   Based on their strategies, Wal-Mart’s strategy of expanding its e-commerce capabilities would be the most successful (Mellahi, & Johnson, 2000).

Amazon cannot be able to pull off same-day delivery across the nation.  In order for Amazon to deliver the same amount of products, it should invest more in the different distribution centers (Roberts, & Berg, 2012). Based on the marketing mix perspective, distribution is a significant aspect in marketing products into different geographical locations (Lichtenstein, 2013).  Currently, Amazon cannot be able to supply the same deliveries into different markets due to the reliability and inaccessibility of the e-commerce platforms in some markets.  Thus, it would take much effort for Amazon investing in the distribution in order to improve delivery across the nation (Saloner, & Spence, 2002).

Based on consumer shopping habits, Amazon might overtake Wal-Mart as the world’s largest retailer.  In 2013, Amazon had $74 billion online sales compared to Wal-Mart’s $10 billion online sales (Krishnamurthi, 2011). Following this trend, Amazon will be able to overtake Wal-Mart in the next 10 years (Subramani, & Walden, 2001). Therefore, there is a likelihood that Amazon will topple Wal-Mart in the near future due to the change in consumer habits.

 

 

References

Chaffey, D. (2007). E-business and E-commerce Management: Strategy, Implementation, and Practice. London: Pearson Education.

Krishnamurthi, M. (2011). The role of data warehousing in the infrastructure of e-Commerce. Review of Business Information Systems (RBIS), 8(3), 11-20.

Lichtenstein, N. (2013). Wal-mart: The face of twenty-first-century capitalism. New York, NY: The New Press.

Mc Carthy, J. E., & Perreault, D. W. (2002). Applications in basic marketing. London: Irwin Press.

Mellahi, K., & Johnson, M. (2000). Does it pay to be a first mover in e. commerce? The case of Amazon. com. Management Decision, 38(7), 445-452.

Roberts, B., & Berg, N. (2012). Walmart: Key insights and practical lessons from the World’s largest retailer. London: Kogan Page Publishers.

Saloner, G., & Spence, M. A. (2002).Creating and capturing value: Perspectives and cases on electronic commerce. Hoboken, NJ: Wiley.

Subramani, M., & Walden, E. (2001). The impact of e-commerce announcements on the market value of firms. Information Systems Research, 12(2), 135-154.