IndexExecutive SummaryWalmart and Amazon Use Competitive Forces and the Value Chain ModelAmazon's Value ChainWalmart's Value ChainAmazon and Walmart's Business StrategiesWhat Does It Role in Helping them Refine Their Business StrategiesWalmart Will Succeed against Amazon?ReferencesExecutive SummaryThis report provides an analysis and evaluation of: Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay Walmart and Amazon use competitive forces and value chain models to achieve success. Comparison between the business models and business strategies of Walmart and Amazon. What roles does information technology play in each of these activities? How does it 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 fostering its further development and trends, and at the same time are in strong competition for the dominant market share. To date, Walmart is the largest and most successful retailer with more than 11,500 stores and 2.3 million employees worldwide, facing the greatest competition from Amazon, dramatically increasing product variety and number while matching the best prices and shipping options for their customers. It has become the largest e-commerce retailer and the most powerful online sales machine. The “pull” business strategy implemented by Amazon responds to customer demands in real time, severely disrupting traditional “push” business models, in which the supplier has a large degree of control, and is currently adopted by Walmart and other retailers. They must adapt to maintain competitive advantage. Technological advances make it possible to attract customers on a much larger scale and maintain sustainable profits using trend and demand analysis, however, the presence of physical stores plays an important role in the components of the business strategy that are not available to the retailer purely virtual and with Thanks to the adoption of new technology and appropriate marketing plans, Walmart may not give up its leading position in the industry anytime soon. Walmart and Amazon use competitive forces and value chain model As one of the largest retailers and operating in 27 countries in the world, Walmart has not yet faced real competition until Amazon has strengthened its forces. Amazon has become known as the "Walmart of the Web" for its ability to sell virtually 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 real-time customer needs, i.e. "pull in" strategy, "free" two-day shipping for Prime members ($99 per month, although considered a sweet spot for some retailers) and competitive inventory produced revenue of over $113 billion in 2015. Amazon had also acquired Whole Foods in August 2017 to compete in the grocery market with Walmart, however, it has not yet been proven as a completely successful strategy as profits for the segment were rolled into combined operating profit. However, the move increased Amazon's presence as a retailer with a physical location. The Amazon Value Chain Inbound Fulfillment by Amazon (FBA) – takes full responsibility for logistics, customer service and returns Operations North America - 33% 2017, International -23% in 2017, Amazon Web Services (AWS ) 43% 2017Outbound logisticsAmazonPrime Air, Amazon Flex (independent logistics operations and deliveries). Marketing and Sales Investments exceeded $10 billion in 2017 in the segment, includes a variety of marketing, promotions and advertising tools and represents a major source of value in operations of Amazon. Services Historically exceptional customer service: an important component of creating value for e-commerce and cloud computing for the enterprise. 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 cause losses, but selling large quantities of other products bolsters income. The significant presence of brick-and-mortar stores (70% of the US population is within a 5-mile radius of Walmart headquarters) plays an important role in the competition. The consumer can purchase the item and take it home immediately, instead of waiting for it to arrive in the mail if ordered online. Walmart steadily increases its investment 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 keep trying to do so. find a more successful alternative to Amazon Prime. The pickup option along with free shipping to the local store has been a success in finding a way to retain their customers and at the same time make them visit a physical location. A significant step was the purchase of Jet.com and some other e-comer successors in the retail sector. This has allowed the company to build a stronger foundation for e-commerce and accelerate growth. Walmart Value Chain Inbound Logistics Over 50% of US products come from abroad; 75% of Walmart's online sales come from off-store inventory. Three principles are followed: The minimum number of links in the supply chain Strategic partnership with suppliers Cross-docking inventory tactics Walmart US operations: largest operating segment; approximately 60% of net sales. Walmart International; approximately 25% of net sales, growth primarily through the acquisition of other businesses. Sam's Club; approximately 12% of net revenues. Outbound logisticsRounding and cargo building operations in a systematic manner in order to increase the overall efficiency of these operations and achieve cost reduction.Marketing and SalesUsing online and offline channels in integrated marketing and sales and a shift towards channel online. Online channels have proven to be more convenient in targeting a specific customer segment and communicating the message. It also contributes to the sustainability of Walmart's cost leadership strategy. Services Historically poor reputation due to low salaries of a customer service support department, however, the new CEO announced a new strategy for improvements and investments of 1 B, in February 2015 was made to increase salaries and training programs . Amazon is using its value chain to compete in the large shipping space and has already established a successful online business model with exceptional customer service; Walmart, on the other hand, uses its supplier relationship to target Amazon's third-party marketplace which accounts for significant revenue for the company. Business Strategies of Amazon and Walmart Walmart is committed to not replicating Amazon's business model. Instead, design leadership is designing an omnichannel approach to retail. The vision is for it not to be a full e-commerce retailer, but for the consumer tohave a more complete shopping experience by shopping online or interacting with the store. Walmart will sell strenuously online and in a physical location, maintaining consistently low prices and a wide variety of products across 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 the same variety and freedom to shop via modern technology or in person, and also incorporate flexible delivery and pickup options. Walmart aims to become the largest omnichannel retailer. Amazon's strategy is to expand its product selection to be as broad as Walmart's. It has been running through third-party sellers to sell product through Amazon's website for years now and has significantly increased its product variety, including buying Zappos, giving the company a competitive advantage in the footwear industry. The company is building new fulfillment centers with an expansion of same-day delivery options, focusing on improving customer service support and diversifying the business as it enters new markets. The role it plays is to help them refine their business strategies. Information technology plays an important role in both societies. Amazon is not only the largest e-commerce marketplace, but also a cloud computing platform, with strong acumen in artificial intelligence and the latest advances in information technology. Amazon's online platform has transformed an e-commerce model to a whole new level and has also enabled strong support for third-party vendor operations by creating new ways of developing the marketplace and supervising it at the same time. The business model based on current customer needs requires comprehensive data analysis and immediate response, which Amazon has managed to achieve using information technology. The consumer can place an order at any time from virtually any device, be it a computer, a phone, a tablet or a voice recognition device such as Alexa, all designed to provide the best possible service experience. Amazon's independence in inbound and outbound logistics has been made possible thanks to the support of Information Technology. The consumer can enjoy robust shipping anywhere in the United States using Amazon services. Company experiments with drones and develops exposure to the food market; everything is made possible by IT support and integration. While Walmart is primarily associated with supermarkets, retail stores have made tremendous progress in developing their exposure to online sales. This would not be possible without the use of information technologies. To support operations around the world and perform competitive and consumer analysis, strong analytical, communications, logistics and security systems are in place, supported primarily by information technology. With the acquisition of Jet.com, Walmart has made great strides in online sales success, and the right IT tools and resources have made it possible. Walmart now has all the tools and resources to successfully manage physical locations and support its consumers online; while Amazon Walmart experiments with drone delivery and is focused on further customer analysis and service improvement to become a leading supplier both in-store and online. Success and development are highly correlated with IT systems and technological progress. Please note: this is just an example. Get a custom paper from our expert writers now./