Video Case Study
Video Case Study
Video Case Study
What are the three key assets that Walmart can leverage (build on) to compete with
Amazon and other online retailers?
a) the largest physical store footprint in the U.S. and the world
b) the largest private transportation fleet
c) the largest retail distribution network, including warehouses
Walmart seeks a multi-channel strategy, endeavoring to combine its physical stores and distribution
framework with the most excellent e-commerce. It wants to construct an all-encompassing shopping
experience that uses physical stores and online ordering to supply customers what they need, when
they need it, at the finest conceivable cost.
3. Why isn’t Walmart worried about the channel conflict between its online sales and its
store sales?
Walmart sees its operation as “One Customer, One Walmart” - no distinction to a client between buying
online totally, and at a physical store.
4. Why is Walmart in-sourcing the development of its online operation, in part by acquiring
technology companies rather than outsourcing development to low-cost countries and
other domestic firms?
In-sourcing allows the company to bring in new skills and capabilities, and then scale them up to
Walmart's size. Walmart wants to rebuild the company, as well as the abilities of its labor force. It also
must enhance and construct new services. The same cannot be accomplished by outsourcing.
Jet.com had a workforce with IT and online sales expertise, and a fascinating workplan of how it may
compete against Amazon.
Amazon's fulfillment appears to be more technologically progressed with the utility of robotics and
drone delivery. On the other hand, Walmart has the biggest fleet of trucks - conventional transportation
- which can be operated to deliver parcels to local stores, and potentially local pick up locations. It has
hundreds of stores that can be utilized as pick up spots for same-day delivery.