Question

Question 1. a. What does the marketing strategy (target segment, value proposition, and marketing mix) of Amazon online and Walmart Supercenters differ in the US market?

b. What is the value network, and distinctive capabilities underlying each of the two business models (Amazon online versus Walmart Supercenter)?

c. Evaluate the initiatives taken by Walmart to meet the omni-channel challenge. How should it evolve in the future?

d. What are the initiatives taken by Amazon to develop an omni-channel presence? What challenges does it face in the adoption of an integrated model, especially when dealing with groceries and apparel?

Answer 1

Question 1. The marketing strategy of (target segment, value proposition, and marketing mix) of Amazon online and Walmart Super centers differ in the US market as Amazon customers are mostly technology oriented and offered convenience with wide range of products delivered timely. The customers are offered products based on their web behaviour and visits of other social media and marketing websites. The value proposition is to offer value to the customer in terms of quality and reliability for ensuring satisfaction and wide network to serve customers with their variety of needs.

Walmart Supermarkets have their own network of manufacturing and value proposition with everyday low pricing strategy and range of quality products to customers as per their needs. The target segments are customers who want quality products at competitive prices. Walmart apart from apparels and electronics, also provides groceries and fresh items for customers to pick up from their nearest location. It is expanding its omni channel presence and working towards integrating its offline and online network.

b. The value network of Amazon comprises of suppliers who can sell their products directly to consumers through Amazon platform with Amazon supporting them with product display and listing of products for optimised search results, delivery and logistics and better customer response. Distinctive capabilities lies in coordination of large number of suppliers and effective logistics network ensuring timely delivery and customer satisfaction with ensuring wide range of products across different categories and reliable network.

Walmart Super centre have the value network of its suppliers across different regions manufacturing products on competitive prices and compliance in terms of quality and working conditions. It also provides its customers with groceries and food items with provision of ordering online and pick up from stores. It has more retail presence with customers across various segments targeted and given benefit of low price quality products. It is technology driven in terms of supply chain and manages vast network of suppliers globally with efficiency. It is increasing its online presence to expand its market share.

c. The initiatives taken by Walmart for its omni channel presence is facilitating online orders from its stores and arranging delivery and pick up from stores. It is targeting seamless experience for customers and partnering with e-commerce websites to increase its online presence with category specialisation and product range. It should evolve with ensuring better online experience of customers, on time delivery, wide range of products, technology platforms with performance and faster order processing. It can study and analyse customer behaviour for providing customised results for customer convenience and providing quality service at both offline and online channels with product availability.

d. Amazon has taken the initiatives like partnering with offline food and grocery stores like wholefoods and providing customers with a wide range of products and availability of network so that they can access the fresh and quality products directly from stores. It is also improving its technology for shopping at stores using automation and cashless shopping in modern technology environment. It faces challenges in the adoption of an integrated model to create a large network of offline stores to compete and become market leader like its online marketplace. In groceries and apparels, it has to create a stable supply chain for long term arrangements and flexibility of making changes as per customer needs and demands.