When analyzing the advantage points of Amazon vs. Walmart, the value chain and competitive force mode for each company is the most important aspect in competing in the e-commerce market. As a quick overview, Walmart was established as a physical retailer back in 1962 and is recognized as the world’s largest retailer and recently entered into the world of e-commerce a few years ago. Amazon joined the dot-com scene back in 1995, and has grown into the largest e-commerce retailer in the world, without a physical location.
Amazon and Walmart both sell electronics and general merchandise, which is the most prominent area of competition between the two companies. It was said e-commerce is estimates indicate that e-commerce could ...view middle of the document...
This allows them to carry a wider array of products, while keeping inventory costs low and increasing their revenue. On the other hand, Walmart has a much larger brand than Amazon. They are known to the lowest price because of its size and ability to keep overhead cost to a minimum. They can afford to sell a hot product at a low price because they will make it up in volume of sales. In addition, they have the most efficient inventory system that restocks merchandise as soon as the item reaches the checkout counter. This gives them an advantage to carry exactly what customers want at all times.
Walmart believes Amazon’s “Achilles’ heel” is the costs and delays of shipping to their buyers. Walmart believes their customers much prefer to have their items shipped free to a local Walmart to pick up their purchased items. In contrast, Amazon began offering same-day deliveries and second day deliveries to increase the convenience of front door service. Their business model is based on providing consumers a place where they can find practically everything without leaving home. That’s when Walmart introduced free shipping for online orders.
If I had to choose between shopping at Amazon vs. Walmart, I would much prefer Amazon. They always have what I’m looking for and suggest products based on my browsing history. Walmart doesn’t have free shipping for all their items. I would rather spend a few more dollars on shipping to avoid driving 20mins to the nearest Walmart location. Plus, I’m not an impulse shopper. Waiting 1-2 days for my purchase is not an issue because I know purchasing exactly what I want conveniently delivered to my doorstep. It’s too easy and makes life so simple.