Woolard
Case Study Questions
3-13
Using the competitive force and value chain models Amazon has a single platform with
strong infrastructure with a high forecasting system. They are leading in e-commerce for
retail and expanding on the variety of products they will sell. They consistently offer new
products with a fast and effortless ways to pay. Not to mention, they also operate 24
hours a day and 7 days a week with hassle-free returns. As for Wal-Mart, they have
efficient distribution capabilities, integrate the suppliers using information technology.
They can actively collect customer purchase behavior and their usage. They are offer low
prices every day by using aggressive pricing strategies to remain competitive. They can
lose money selling a hot product and expect to make money on selling massive
quantities. They also provide the staff with monetary participation.
3-14
Using the business model and business strategies Amazon spends a large amount of their
money on building more distribution centers for their orders to be fulfilled. They are also
investing in expansion of technology offerings and data centers. Amazon was first
focused on books and music but quickly expanded to other products and services. They
expansion focused on business buyers. It even allowed eBay merchants to list their
products and customers to purchase. Wal-Mart on the other hand is newer to the e-
commerce than Amazon. Wal-Mart however has the largest retail sales revenue due to the
actual physical stores. Wal-Mart also allows the customer to drive the supplier and they
are also decentralized.
3-15
Information technology has allowed both Amazon and Wal-Mart become very accessible
to the customers. It has allowed the customers to be able to locate products easily. Both
companies have been able to get great recognition from large groups of not only the