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Walmart and Amazon Duke it out for E-commerce Supremacy (Walmart profile #…
Walmart and Amazon Duke it out for E-commerce Supremacy
Walmart
Challenge
#
e-commerce
Current sell model:
push model
- high degree of control
Customers
Bargain hunters
are becoming more confortable in usin technology
Affluent customers started shopping and walmart during recession
Massive suply chain
supports more than 11500 stores
uses same sypply chain for online and branch
Stores provide instante gratification of shopping
Solution
increased investment in online business
Spend between 1,5 bilions per year
Constructed one of the largest cloud Computing center
in 2015 opened 4 new fulfilment center
Introduced it's own free two day shipping program
Introduced new teechnology
improve Product recommendation on web
use smart-phones as marketing channels
personalyze the shopping experience
add new applications to mobile and online shopping channels
extend integrations with social working
introduced it's own free two-day shipping -
chipping pass
Cross-channel
Pay with cash program
cross channel experience - links between in store inventoy and mobile phone apps
LCimplement lockers in the stores - customer can order online and then pick-up them up in dockers
customers want real interaction in stores
customers want digital experience
Expand online grocery delivery services
Acquire the récipe technology start-up Yumprint
customer experience
improve in store experience
Mobile app
in store mode
scan & go - scan items and move quickly through check-out
add items by voice or scanning bar codes
website
uses SW to monitor prices in real-time
Marketplace
doubling inventoy sold by thirdparties
tracking patterns in search
Social media
track patterns in social media data
Delivery
in store pickup
home delivery
Want to be the biigest omnichannel retailer
Supply chain management
Drones accelerating delivery
Amazon profile
Sells books and other products like dvd's eletroncis, food, toys, ...
produces consumer eletronics
world's largest e-commerce retailer
Biggest disrupter in online sales
Revenue growing faster than Walmart
Recognized and well noticed brand in online retailing
Biggest competitor:
Walmart
Walmart profile
#
World's largest retailer
#
with $483 billion in 2015 sales
more than 11500 stores
2,3 million employees
Rank nº1 in fortune
Biggest competitor:
Amazon
#
Biggest disrupter in retail sales
Founded as tradicional, offline store in 1962
More recognizable brand
low price
Wide Product available
Amazon
Current sales model:
pull model
- shoppers are more empowered
Customers - afluente customers
Started shopping merchandising categories sold traditionaly by walmart, like vacum bags
process
Extend wharehouse facilities
eficiente distribution network designed for webshopping
Supply chain optimized for online shopping
More than 100 warehouses to package and ship goods; costs decreasing
Drones acelerating delivery
Premium shiping service - Amazon prime
two days shipping
shiping costs lower than walmart
affordable fixed anual subscription
Solution
Cross-channel
Deal with Staples and 7-eleven to allow customers to pick up things the bought online
Oppened a retail bookstore in Seattle
Building grocery offerings with Amazon Prime, Prime now, Prime pantry, Amazon Fresh offering
Expand Product selection via acquisitions. Ex: in 2009 purchase of online shoe shopping Zappos
Customer experience
Third party Marketplace
Online
Expand offer
include new products like sun glasses and wine refrigerators
Alexa
- voice control digital assistant
New Product content collection system - Display product catalogs online
Wants to be as exaustive in goods as Walmart