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Analysis of walmart vs amazon vs target
Analysis of walmart vs amazon vs target
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According to Forbes magazine, the electronics retailer Best Buy has been the downfall for many years due to a wide range of various different reasons. In 2011, the electronics retailer lost approximately 40% of its market value and it is still slowly on the downfall until this day. I have also come to realize that Best Buy has more stores in the world than it can operate. It has come to be discovered that since the quality of the customer service provided by the employees is not always reliable and effective, is one reason why the business itself is closing its doors. Another great example is competitors such as Amazon since the release of their online store, it has made shopping more simpler for the customer with just a click of a button, …show more content…
With all of this being said, provides a strong reasoning as to why the Best Buy operations are having an escalated increase downfall over the years. First of all, Best Buy lacks a various range of different basic business concepts, throughout the years the electronics retailer hasn’t been meeting the minimal needs of consumers, I’ve been reading several different reviews on Best Buy’s customer support forum on their website, and it’s just plain shocking the lack of customer satisfaction Best Buy hasn’t been …show more content…
I went up to a sales staff member quickly told them what I needed, a few seconds later he comes to tell me that the item I’m looking for cost approximately $95 + taxes, which in my mind I knew that wasn’t right at all. I ended up leaving and when I arrived home I quickly went on Amazon and searched for it, and I ended up finding the exact same product that was at Best Buy but on Amazon for approximately $34 + free shipping, which got me very excited that I had found the same item for less than half price, but at the same time I was also baffled that this product would cost over $100 after taxes. After that day I had excellent satisfaction from Amazon and till this day I purchase various different products from their website
has week chance to compute with rest of retailers which have strong tie with the society.
...al-Mart’s methods to keeping these prices down have been immoral. In addition, they have taken advantage of town resources for example, subsidies, employee benefits and exploitation of cheap labor. Even though they have surpassed significantly in attracting customers all over the nation, they failed to do so ethically. This has created losses to competitors, and the battle for profit is an ongoing one. Therefore, I believe that Wal-Mart has become an economical disaster to competitors and the US as a whole. This is due to the exporting of huge amounts of funds to Asian countries, which in turn reduced the funds in the US due to continuous import costs.
When Wal-Mart establishes itself in a town, it makes its competitors to close their businesses since they cannot compete in the current market. There are several businesses that go out of business when this company sets up a branch in the town. However people don’t agree with this since customers are the ones who go to purchase goods from Wal-Mart. If there are people who should be blamed are the customers since they flock into the retail market to buy from them. This is the reason why these retail businesses are out of business. The reason that makes customers go to shop at Wal-Mart is that, there is ample parking, low prices and they also provide superior goods and services to the customers.Down town destruction started earlier before Wal-Mart was established. Wal-Mart is trying to bring with it new technologies that are aimed to cope with the current technologies. We ought to find new ways of doing things and this is exactly what is happening with Wal-Mart. For instance, Wal-Mart might be embracing technology to supplant it. Internet shopping might be some of the new business technologies that they are trying to embrace.
These conditions are brought about by the enormous pressure Wal-Mart has put on their suppliers. Their sheer size enables them to negotiate whatever they want. Suppliers rarely dare to request a price increase, and they are very conservative when giving price quotes to Wal-Mart. To lose Wal-Mart as a customer can mean the end of business for many suppliers. It’s hard to combat this downfall when Wal-Mart has so much buying power-- countries send government officials to Bentonville, Arkansas to lobby for production in their country.
Wal-Mart has faced several accusations of, "predatory pricing", or intentionally selling a product below cost in order to drive some or all competitors out of the market.
With the passion for the latest and greatest technological knowledge, and the charisma and devotion towards the youth, Best Buy is sure to continue on the high road to success. Best Buy will be changing and advancing to accommodate the ever-changing field of technology. They are truly a testament to upholding and exceeding their vision statement of “meeting the customer at the intersection of technology and life” (FAQ).
When you first examine the organizational structure of Best Buy Co. it can be a bit confusing. Though the company is one big organization, it has many smaller sub organizations, for example Geek Squad and Best Buy Mobile. Though they are one company Geek Squad offers computer repairs as well as computer and home theater installations and trouble shoots, and Best Buy Mobile offers cell phones, while Best Buy as a store sells electronics. The Best Buy Co. organizational structure appears to be a hybrid of a functional and a divisional structure. The store is setup with different departments and each department has a lead or a supervisor that is in charge of meeting sales and financial goals. Above the department supervisors, there is a sales manager and then a general manager that is in charge of everything and everyone in that retail location. That is the part that is more of a functional structure. The divisional structure comes in the separate sub organizations. Best Buy Mobile, though it is in the same retail location most of the time, has its own separate budgets, and sales goals, its own payroll allocation and manager, making Best Buy Mobile a separate entity within the store (Best Buy Co. , 2011).
Best Buy is one of the largest hypermarket store company in USA, with competition from similar local general merchandise store: K-mart, Best Buy do a research on demographic analysis and daily sales statistic to identity profitable customers (Blocher, 2013).
Realization of this success is hard to grasp in an economy where brick-and-mortar stores have and continue to suffer do to low-cost online retailers such as Amazon and large, low-cost brick-and-mortar retailers such as Costco and Wal-Mart (Bajarin, 2012).
Green – BestBuy – This retailer has been around for as long as I’ve been around. It opened it’s first store in Minnesota back in 1966. They sell and contribute to the community cheap and reasonable prices. They have a lot of competitors beat. When I think about electronics for any of my products, I think of BestBuy and go there for my needs.
From the consumer side, Amazon provides services like Amazon Prime, which delivers free two-day shipping on retail purchases, on-demand video streaming and a free access to the Kindle library, everything for an annual
Walmart’s’ vision statement is “Save Money Live better”. They make it work by using their marketing strategy knowing everyone is always looking for the lowest price and it can usually be found at Walmart. Once someone sees an advertisement about the low prices either being in the store itself or on their website they eventually end up becoming a regular customer. Seeing as they can get daily deals all day long? Analyzing all of Walmart’s marketing strategies will narrow down and explain why Walmart is where they are today. (Bacons, 2013).
Samsung and Sony are following Apple’s lead in maintaining control of their prices. For example, stores are restricted from offering sales and discounts on certain products like premium line TVs (Byford, 2012). Premium pricing, which reflects the exclusivity of the product, is a pricing objective used by Samsung. Consumers generally equate price with quality; therefore, if they are getting a top of the line product they are willing to pay higher prices. The combined decision to use premium pricing, and to not allow stores to offer discounts is risky because they can potentially lose sales to other top competitors like LG, Sharp and Panasonic. Another strategic pricing objective used by Samsung is product line pricing, which is advantageous to both company and consumer. Product line pricing offers lower end models of the same product without all of the added features to be sold at significantly lower prices, in this case premium TVs. This allows customers who lack interest in the bells and whistles or otherwise cannot afford the high-end models the ability to still purchase a TV. As a result TV’s offered at a lower price has the potential to sell in higher volumes.
Pricing and retail strategy is a key component of any business. These strategies play a major role in a customer’s perceptions of a business. Price is almost always a key factor. “Speak to any average consumer and mention the names of some high quality, leading businesses. The chances are high that one of the first words they will use is "expensive". Not "excellent service", "marvelous range" or even "helpful staff" (2006). Wal-Mart uses an everyday low price pricing strategy which has been a massive success for the company.
Best Buy, one of the biggest consumer electronics retailers in the world, provides products from smartphone, computers to large electronic appliances. It aims at offering a large variety of products with outstanding customer service at a comparably economical price. Yet, it has been facing internal and external challenges in the recent years. Bottom line and the share price are slightly catching up after a fall in 2013 but still barely satisfying the shareholders and customers are changing their purchasing habits which may threaten its future.