Business case studies with solutions
Welcome to another installment of business case studies with solutions, here we will be analyzing the strategy wars in retail between Amazon and Walmart.
Recently the news item about the grocery chain Whole Foods being acquired by Amazon. Now this is an interesting development as Amazon is seen as an online retailer so why is it acquiring an offline grocery store chain. The reason is that while Amazon is the top online retailer bulk of the retail store sales happen offline and Amazon wants to be where the action is. One of the largest retail chains is Walmart which,with its cost leadership strategy and superior logistics, have dominated the retail space for a long time.
In fact, Walmart strategy and its success led to the closure of multiple retail chains such as K-Mart and Sears.
Watch the video below and discuss the strategies of Amazon and Walmart
The modern day battle for the conquest of the retail space it is interesting to see the various strategies and how they are adapted by these retail Giants. While Walmart is definitely leading in offline sales, Amazon with its superior technological innovations and focus on customer convenience is a formidable foe for Walmart .It would be interesting how the battle would unfold.The best thing for a business student is that it is happening right now , in front of us.
While many place their bets on Amazon, Walmart has woken up to the threat and is taking definite steps to improve on the technological front.
Key questions for superior strategy
Where do we compete?
What unique value do we provide?
What resources and capabilities do we bring?
How do we sustain our ability to keep providing unique value?
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