Case Study Walmart vs Amazon

Topics: Online shopping, Retailing, Electronic commerce Pages: 6 (2163 words) Published: July 22, 2011
Question 1. Compare with What features do the sites have in common? Which are unique to To Answer:
When we compare with Two of the biggest names in the industry are and Walmart, the latter of which has moved beyond its physical stores and begun to offer a variety of merchandise online. is one of the most recognizable names in the online retail industry. The site’s marketplace allows customers to purchase a wide variety of items online. And with a slew of third-party merchants in its roster, is a formidable presence indeed. Walmart is just as widely known of course, albeit in the real world. The company is a familiar name in the retail industry thanks to its numerous stores throughout the county and the world, and its recent move into the online world took many by surprise. Walmart now offers the same online shopping service as and other online retailers do, and it is clear that the company poses some serious competition. Walmart has recently added more than one million new items to its online catalog, which is bound to get the site some market attention. This is in line with the company’s goal of becoming the most visited retail site on the Internet. As to whether or not this will allow the company to grab a portion of the lucrative online market dominated by and other sites remains to be seen. definitely isn't taking the challenge lying down, having just recently 2009 racked up 1.7 million active marketplace sellers. Considering that the figure accounts for sellers and not merely items, it appears that Walmart has its work cut out for it. Common features:

Both and offer the benefits of easy and convenient online shopping. Both and offer similar prices, although there may be slight variances with certain items. Both offers Electronics, Movies, Music & Books, Toys & Video Games, Sports & Fitness, Auto & Home Improvement, Pharmacy, Health & Beauty, Grocery & Pets, Baby & Kids, Apparel and Shoes & Jewelry. Both provides free and paid shipping, Order status, Tracking numbers and free accounts. Both offers special offers, discounts, gift cards, coupons and clearness sales. Unique to

Started out as a brick-and-mortar retailer but has now gone on to online retailing. Offers Walmart Marketplace merchandise on its website.
Has more than one million new items in its online inventory. Unique to
Has been in the online retail business longer than Walmart and almost every other online retailer. Just like on Amazon’s Marketplace, shoppers can buy Walmart Marketplace merchandise on Wal-Mart’s Web site. says it currently has 1.7 million active marketplace sellers.

Question 2. Will become the dominant e‐tailer in the world, replacing, or will dominate WalMart online? What factors would contribute to WalMart’s success in the online marketplace? What factors would detract from its ability to dominate online sales the way it has been able to dominate physical retail sales in many markets? Answer: For almost a decade, Wal-Mart Stores has been boasting that it will dominate Internet retailing the way it dominates strip malls, as the world's largest online merchant. And every year, those boasts have proved hollow. But this holiday shopping season, Wal-Mart has started aiming at what it sees as Amazon's Achilles' heel: the costs and delays of shipping online purchases to buyers. has advantage in shipping products from the local Wal-Mart store. For this walmart provided new service desks at the front of some stores make it easier for shoppers to retrieve their now ranks among the top e-commerce sites in traffic, according to comScore's tracking service. The factors...
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