Question

In the next decade, what will the workplace look like at Walmart?

Discuss online sales vs store front sales. How will this affect Walmart?

How much of a threat is Amazon to Walmart?

Answer 1

The internet has changed the way business has done and even it has also changed the way people shop. Online shopping portal means people can browse all the products in heir chair while having a cup of coffee. This has reduced physical traveling time and searching cost. The online shops have no upmarket stores which they don't have a higher investment in real estate but they have a higher cost in structuring efficient supply chain.

Wal-Mart is the biggest retailer in this world and going ahead they will have to adopt a hybrid model whereby they will have physical stores but fewer megastores and more of smaller versions. Walmart will also push online shopping and those stores will enable them to have a scalable and supply chain for faster procurement and delivery. Walmart has recently bought an Indian online retailer Flipkart for $16 billion which indicates their strategy.

The online sales will be going to flourish with faster internet penetration around the world. The reduced cost also enables online shopping portals to offer cheaper prices and they can look for customers all over the nation or world. The physical store means instant delivery of the goods but it serves the limited area and needs a higher fixed cost.

Amazon and Walmart going to compete with each other although they started off with a different path. Walmart started with physical stores while Amazon entered the market by online mode. However, as I mentioned above that they will have to adopt a hybrid model and it means Amazon will open physical stores which will be capitalized on the robust supply chain of the company. This convergence means Amazon and Walmart will be close competitors of each other in the future.