Success of Wal-Mart and Amazon

Topics: Supply chain management, Electronic commerce, Management Pages: 2 (459 words) Published: October 14, 2012
What are the management, organization, and technology factors that have contributed to the success of both Wal-Mart and Amazon? First of all, convenience and ease of use of both companies’ services made them successful. Regarding Amazon, large selection is the most essential point. Publisher relations, wholesale relations, and unlimited virtual shelf space is crucial. Supportive factors that contributed to Amazon’s success; •High Performance Service , great customer service, superior service reps •Website is fast, reliable, and easy to use

Shipping is prompt. Low inventory, Fast logistics, reliable, inexpensive shipping , originally no inventory, use Ingram •Personalization/Large customer database, extensive customer profiles •Brand share of mind/Networking Short, clever name/URL/tag line Referral program Co-branding, cross promotion and high advertising

The management, organization and technology factors that have contributed to the success of Wal-Mart: •Strategy of managing, Cost Budgeting, Payroll cost, Saving on business travel cost, Investing in technology •RFID system is eliminating unnecessary costs

Location Acquisition Strategy
POS- Inventory Control System

Compare Wal-Mart’s and Amazon’s e-commerce business models. Which is stronger? Amazon’s e-commerce business model Amazon started as a store that focused primarily on books and music. It quickly expanded to other segments and now sells products in nearly every segment – apparel, home improvement, groceries. Wal-Mart’s impressive growth in such a short time span and arguably the single most important factor in this rise was their harnessing of the power of e-business, e-procurement, and the adjustment of internal processes to maximize this advantage. More than any other company, Wal-Mart has revolutionized supply chain management by using a “pull” model where customer demands drive the suppliers. In addition, Wal-Mart has been making efforts to go more and more online and more...
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