Walmart And Amazon Case Study

2. Compare Walmart and Amazon’s business models and business strategies.

Walmart:

Business model
Walmart operates retail stores in various formats around the world and is committed to saving people money. Walmart earns the trust of its customers every day by providing a broad assortment of quality merchandise and services at everyday low prices while nurturing a culture that rewards and embraces mutual integrity, respect and diversity. EDLP is a pricing philosophy Walmart uses under which it prices items at a low price every day so its customers trust that its prices will not change under frequent promotional activity. Walmart operations comprise three business segments, namely: Walmart U.S., International and Sam’s Club. The Walmart U.S.

The company started as an online book seller, which then rapidly expanded into music and movies, and finally into electronics and households.

Another part of Amazon’s retail strategy is to serve as the channel for other retailers to sell their products and take a percentage of cut of every purchase. Amazon does not have to maintain inventory on slower-selling products. This strategy has made Amazon a ‘long tail’ leading retailer, expanding its available selection without a corresponding increase in overhead costs.

Encompassing this ‘long tail’ retail model, Amazon introduced the sale of used products through its seller marketplace. This retail model provides another retail revenue stream for the company without the need to store products in its warehouses. Shipping and advertising are handled exclusively by sellers, with Amazon taking a percentage cut of every sale for simply providing the channel.

Internet Services
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