Polytechnic University of Puerto Rico
Ivette M. Olivero
Wal-Mart is a world-wide active American retail trade company and currently the largest retail company in the world. Beginning in 1962, Wal-Mart has made the transition from a small firm in Arkansas to the largest employer with 3, 800 store units in the United States with record revenues today. But nevertheless, since Wal-Mart launched its online branch, it had to suffer from substantial setbacks from competitors such as Amazon.com or EBay. The intention of this case study is to evaluate Wal-Marts.com's profitability of success regarding its situation in 1999.
What is the impact of Wal-Mart.com on customer-borne transaction costs? Wal-Mart's business philosophy is based on the simple idea, Sam Walton had in mind, when he first founded his business Ð’â€ making the customer No. 1. It is Wal-Mart.com's goal to bring this culture and philosophy to the Internet. Wal-Mart.com is very ambitious to combine technology and world-class retailing in order to give customers a wide product assortment, "everyday low prices", guaranteed satisfaction, friendly service, and convenient shopping hours 24/7. The creation of Wal-Mart.com is providing customers and the company with a new distribution channel: online shopping. While shopping online, customers are saving time and money on transportation, saving time (which for most of them signifies money) This results in lower costs so we can say that the creation of Wal-Mart.com will lower the customer-borne transaction costs. With the launch of Wal-Mart.com consumer-borne transaction costs can be reduced: * By minimizing the expenditure of time consumers would spend on driving to a Wal-Mart store in their surrounding area, the time spent in line and the time needed to return to their homes. We all know that time is money and so this economy of time stands for a considerable reduction of consumer-borne...
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