Question

Organization Theory

minimum of 250 words

Who are the top 3 competitors in the online retail industry? How do their strategies and execution differ from each others? Discuss the advantages and disadvantages of these differences. Reply

Answer 1

In recent researches, it has been found that Amazon, eBay, and Wal-mart are the top three online retailers which are competing with each other.

If we analyze the strategy of Amazon, it is clear that the company is focusing on the facilitation of a wide array of products to its customers and ensuring the fastest and hassle-free delivery of the product. The company is using its platform to connect with several other retailers and provide its customer base to have the largest assortment of products and services. The main advantage of this strategy is that it provides no reason for the customers to look for the other online retailers as all the required products are available with the largest variety. Faster delivery is also a plus point. However, this strategy is limited due to the fact that the increased customer expectations are not easy to satisfy all the time and any flaw can cause a bad name for the company.

E-bay is an American MNC which facilitates both consumer-to-consumer and business-to-consumer sales over its platform. Unlike Amazon, customers can also buy and sell their products and services to each other. The main benefit of this service is that it provides more service to the customers as they can find the reselling products at a lower price, they can negotiate the price with the other customers. The negative aspect of this strategy is that the quality of the products sold by the customers is no regulated that can cause dissatisfaction and the company needs to have a lot of customer awareness in order to protect them from any possible frauds.

Wal-Mart sells its low-cost products over the internet and it is one of the largest retailers in the world. It offers the products at the lowest possible price and the customer can buy the product and collect it from the nearby store of Wal-Mart. The limitation of this strategy is that lower price forces the company to somehow accommodate the lower quality of the product that can be the reason for some of the customer’ dissatisfaction.