Table of ContentsSummaryWalmart and Amazon Use Competitive Forces and Value Chain ModelAmazon Value ChainWalmart Value ChainBusiness Strategies of Amazon and WalmartWhat Role Does It Play in Helping Them refine their business strategiesWill Walmart succeed against Amazon?ReferencesExecutive SummaryThis report provides an analysis and evaluation of: Say No to Plagiarism. Get Custom Essay on “Why Violent Video Games Should Not Be Banned”?Get Original EssayWalmart and Amazon Use Competitive Forces and Value Chain Models to Succeed.Comparison of Walmart's Business Models and Business Strategies and Amazon.What roles does information play? Does technology play a role in each of these professions? How does this help them refine their business strategies? Will Walmart succeed against Amazon? The case study draws attention to the fact that these two e-commerce giants have dominated the industry, also favoring its development and trends, and at the same time are in strong competition for the dominant market share. Currently, Walmart is the largest and most successful retailer with more than 11,500 stores and 2.3 million employees worldwide, faces the greatest competition from Amazon, greatly increasing the variety and number of products while matching the best prices and shipping options to its customers. It has become the largest e-commerce retailer and the most powerful online sales machine. Amazon's "pull" business strategy responds to customer requests in real time, severely disrupting traditional "push" business models, in which the supplier has a large degree of control, and is currently being adopted by Walmart and others retailers. They must adapt to maintain their competitive advantage. Technological advancements make it possible to attract customers on a much larger scale and maintain sustainable profits through trend and demand analysis. However, the presence of physical stores plays a major role in the components of the business strategy that are not available to the purely virtual retailer and with the adoption of new technology and corresponding marketing plans, Walmart might not give up its leading position in the industry anytime soon. Walmart and Amazon use competitive forces and the value chain model. Being one of the largest retailers and operating in 27 countries worldwide, Walmart has yet to face real competition until Amazon has increased its strengths. Amazon has become known as the "Walmart of the Web" because of its ability to sell just about any retail product you can find in a Walmart store or any product you actually need. Amazon's main online sales strategy is to focus on customer needs in real time, i.e. a "pull in" strategy, "free" two-day shipping for Prime members ( $99/month, although considered a low point for some). retailers) and competitive inventory generated more than $113 billion in revenue in 2015. Amazon had also acquired Whole Foods in August 2017 to compete with Walmart in the grocery market. for the segment were included in the combined operating profit. However, the move increased Amazon's presence as a retailer with a physical location. , Amazon Web Services (AWS) 43% 2017Outbound logisticsAmazon Prime Air, Amazon Flex (independent logistics operations and delivery).Marketing and salesInvestment exceeded $10 billion in 2017 insegment, includes a variety of marketing tools, promotions and advertisements, and represents one of the main sources of value in Amazon's operations.ServicesHistorically exceptional customer service – a major element of creating value for commerce electronics and cloud computing for business. Walmart, on the other hand, is associated with the lowest prices and has the flexibility to offer the same due to its size. High product prices can lead to losses, but selling large quantities of other products bolsters revenue. The significant presence of physical stores (70% of the American population is within a 5-mile radius of the Walmart site) plays an important role in competition. The consumer can purchase the item and take it home immediately, rather than waiting for it to arrive in the mail if it was ordered online. Walmart is steadily increasing its investments in online business development, including fulfillment centers and technology – by $1.5 billion in 2015. To further compete with Amazon, “free” two-day shipping is offered to all customers with a minimum order of $35, and continues to try to find a more successful alternative to Amazon Prime. The pickup option along with free delivery to the local store made it possible to find a way to retain their customers while having them visit a physical location. An important step was the purchase of Jet.com and a few other e-tailer successors in the retail business. This allowed the company to build a stronger e-commerce foundation and accelerate its growth. Walmart Value ChainInbound LogisticsMore than 50% of U.S. products come from abroad; 75% of Walmart's online sales come from non-store inventory. Three principles are followed: Minimum number of links in the supply chain Strategic partnership with suppliers Cross-docking inventory tactics Operations Walmart US – largest operating segment; approximately 60% of net sales. Walmart International; approximately 25% of net sales, growth mainly through the acquisition of other businesses. Sam's Club; approximately 12% of net turnover. Outbound logistics Rounding and strengthening operations in a systematic manner in order to increase the overall efficiency of these operations and reduce costs. Marketing and Sales Use of online and offline channels in integrated marketing and sales and shift to online channel. Online channels have proven to be more cost-effective in targeting a specific customer segment and communicating the message. This also contributes to the sustainability of Walmart's cost leadership strategy. ServicesHistorically poor reputation due to low salaries of a customer support department, however, the new CEO announced a new strategy to improve and investment of 1 billion, in February 2015 was made to increase salaries and training programs. Amazon uses its value chain to compete in the broad shipping space and has already established a successful online business model with exceptional customer service; Walmart, for its part, uses its relationship with suppliers to access Amazon's third-party marketplace, which represents significant revenue for the company. Amazon and Walmart Business StrategiesWalmart is committed to not replicating Amazon's business model. Instead, he envisions leaders designing an omnichannel approach to retail. The idea is that it is not a complete e-commerce retailer, but if the consumer can have a more complete shopping experience, they buy online or interact with thestore. Walmart will sell intensively online and in a physical location, maintaining consistently low prices and a wide variety of products in both divisions using its extensive store networks as a distribution point. The strategy is to tightly integrate online shopping with a physical location, allow the customer to have as much variety and freedom to shop via modern technology or in person, and also integrate flexible delivery and delivery options. withdrawal. Walmart aims to become the largest omnichannel retailer. Amazon's strategy is to expand the product selection to be as extensive as Walmart's. It has been run by third-party sellers to sell the product through Amazon's website for years and has significantly increased its product variety, including the purchase of Zappos, giving the company a competitive advantage in the field of shoes. The company is building new distribution centers with an expansion of same-day delivery options, focusing on improving customer service and diversifying business while entering new markets. Its role is to help them refine their commercial strategies. Information technology plays an important role in both businesses. Amazon is not only the largest e-commerce marketplace, but also a cloud computing platform, with a strong sense of AI and the latest advancements in information technology. Amazon's online platform has transformed the e-commerce model to a whole new level and has also helped to strongly support the third-party vendor's operations by creating new ways to develop the marketplace and overseeing it at the same time. The business model based on the customer's current needs requires comprehensive data analysis and immediate response, which Amazon has managed to achieve through information technology. The consumer can place an order at any time and virtually from any device, whether it is a computer, phone, tablet or a voice recognition device like Alexa, all designed to provide the best possible service experience. Amazon's independence in inbound and outbound logistics was made possible with the support of information technology. The consumer can enjoy robust shipping anywhere in the United States using Amazon services. The company is experimenting with drones and developing its visibility in the grocery market; everything is made possible by IT support and integration. Walmart is primarily associated with supermarkets, however in-store retailers have made huge strides in expanding their exposure to online sales. This would not be possible without the use of information technology. To support operations across the globe and perform competitive and consumer analysis, robust analytics, communications, logistics and security systems are in place and are primarily supported by information technology. With the acquisition of Jet.com, Walmart moved forward in its online sales success, and the right IT tools and resources made this possible. Walmart now has all the tools and resources needed to successfully operate physical locations and also support its consumers online; while Amazon Walmart is experimenting with drone delivery and moving toward new customer analytics and service improvement to become a leading provider both in-store and online. Success and development are closely linked to IT systems and progress/