Evaluation of the Business Model for Wal Mart.Com
Evaluation of the business model for Wal-Mart.com. Is it a successful model?
Wall-Mart is using the click and mortar business model, it is a multi-channel business model that leverages the best of both online and offline operations.
One of the advantages of this model is that it offers products and services through multiple channels: through its brick and mortar stores and online store. In addition, most of the products offered by Walmart.com have successful e-tailing characteristics. They are relatively inexpensive items, frequently purchased items, commodities with standard specifications and well know packaged items.
The site offers superior service in the form of extensive information:
Order tracking
Purchase history
Shipping costs and times information
Physical store locator
Product information, comparison and recommendation
Special promotions in physical stores
New product information in physical stores
Wal-Mart events information
Idea center on how to best use purchased products: health, recipes, or personal care and style.
This model also provides benefits of flexibility and convenience: registry services for having a baby or weddings, creating wish lists so others know what you like, and gift cards. It also offers ability to pickup your online orders in-store. Personalized and customized services such as digital photo center.
Most of these benefits would not be feasible with other business models. Wall-Mart's distribution channel is used very effectively to provide such benefits. Established relationships with manufacturers make product management easier and eliminate problems with back end operations such as managing inventory. This helps Walmart.com with managing inventory against product demand and order fulfillment.
Wallmart.com operates as a subsidiary of Wal-Mart which allows Wallmart.com to concentrate on the e-commerce operations such as front-end design, customer support environment and other virtual/e-commerce best
Wall-Mart is using the click and mortar business model, it is a multi-channel business model that leverages the best of both online and offline operations.
One of the advantages of this model is that it offers products and services through multiple channels: through its brick and mortar stores and online store. In addition, most of the products offered by Walmart.com have successful e-tailing characteristics. They are relatively inexpensive items, frequently purchased items, commodities with standard specifications and well know packaged items.
The site offers superior service in the form of extensive information:
Order tracking
Purchase history
Shipping costs and times information
Physical store locator
Product information, comparison and recommendation
Special promotions in physical stores
New product information in physical stores
Wal-Mart events information
Idea center on how to best use purchased products: health, recipes, or personal care and style.
This model also provides benefits of flexibility and convenience: registry services for having a baby or weddings, creating wish lists so others know what you like, and gift cards. It also offers ability to pickup your online orders in-store. Personalized and customized services such as digital photo center.
Most of these benefits would not be feasible with other business models. Wall-Mart's distribution channel is used very effectively to provide such benefits. Established relationships with manufacturers make product management easier and eliminate problems with back end operations such as managing inventory. This helps Walmart.com with managing inventory against product demand and order fulfillment.
Wallmart.com operates as a subsidiary of Wal-Mart which allows Wallmart.com to concentrate on the e-commerce operations such as front-end design, customer support environment and other virtual/e-commerce best