09 May WHAT ARE WAL-MART’S RESOURCES CAPABILITIES AND COMPETITIVE ADVANTAGES WHICH WILL HELP IT COMPETE WITH AMAZON?
What are Wal-Mart’s resources capabilities and competitive advantages which will help it compete with Amazon?Wal-Mart has plenty of resources to compete with Amazon. The firm owns 4 574 storesin the U.S. and 6 299 stores abroad this provides a competitive advantage due to the largenetwork of customers Wal-Mart can reach. Each week Wal-Mart serves approximately 260million customers through its stores and 11 e-commerce websites. Walmart.com even attractsan average of 85 million unique visitors each month. In 2015 Wal-Mart reached $482 billion inrevenue a figure nearly five times more than Amazon’s sales. With $14.7 billion in net income Wal-Mart totaled 2 350% more profits than Amazon as well. Wal-Mart overall is a moreprofitable business but is still behind Amazon when it comes to market valuation.Wal-Mart is capable and already is competing with Amazon but in regards to ecommerce sales Amazon is vastly ahead. It seems that Wal-Mart understands that Amazon iswinning and is trying to catch up and compete in e-commerce. By providing customers a“ShippingPass” program the company is promising customers 2-day shipping a feature thatAmazon already had in place. It was a good idea on Wal-Mart’s part to provide 2-day shippingall year for $49.99 but this doesn’t necessarily give the company a competitive advantage. Thereason is because of customer brand loyalty to Amazon. If a customer already has an AmazonPrime account chances are that they will not spend an additional 50 dollars to get a“ShippingPass.” On another note acquiring companies like Jet.com and others is a great way forWal-Mart to gain ground on Amazon for the future.Overall Wal-Mart is doing the right things to help compete with Amazon. Wal-Mart hitsa wide variety of customers when it comes to sales at their store locations but currently lacks incomparison to Amazon when it comes to e-commerce. If they continue shift their focus andspend more capital on e-commerce then they will be in good shape for sustainably competingwith Amazon in the long run.
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