MM ZG512 Manufacturing

Strategy
Rajiv Gupta
BITS Pilani
Live Lecture 11
Wal Mart Amazon Case
 Recitation 11
• Begin Module 1
– Walmart Amazon Case Study Discussion

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 Recitation 11
Articles for the Case on Amazon vs. Walmart

• https://www.retaildive.com/news/walmart-gains-traction-5-months-after-
launch/595029/#:~:text=Five%20months%20after%20Walmart's%20membership,Research%20Partners%20analys
is%20released%20Wednesday.

• https://www.supplychainbrain.com/articles/32039-whole-foods-is-left-behind-in-amazons-pandemic-fueled-
boom
• https://www.cnbc.com/2020/10/05/walmart-signs-drone-deals-as-it-races-to-play-catch-up-with-amazon.html
• https://www.inc.com/minda-zetlin/walmart-launches-prime-competitor-service.html
•

• Amazon vs. Walmart: Which one will prevail?

http://knowledge.wharton.upenn.edu/article/amazon-vs-walmart-one-will-prevail/

• Amazon vs. Walmart is shaping up to be a battle of mega-retailers

• http://www.nydailynews.com/life-style/amazon-wal-mart-shaping-battle-mega-retailers-article-1.3452650
•
• Amazon wants to become Walmart before Walmart can become Amazon
• https://techcrunch.com/2017/06/16/amazon-wants-to-become-walmart-before-walmart-can-become-amazon/
•
• Amazon’s domination is blocked by a delivery truck
• https://www.bloomberg.com/gadfly/articles/2017-10-05/amazon-s-domination-is-blocked-by-a-delivery-truck

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 Case Discussion Questions
Discussion Questions:

1. How do you broadly view Walmart and

Amazon as companies?
2. What are the similarities and differences
between Walmart and Amazon?
3. What are the traditional strengths and
weaknesses of Walmart?
4. What are the strengths and weaknesses of
Amazon?

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 Case Discussion Questions
5. What steps are Walmart and Amazon taking to rival each
other?
6. What are the risks associated with the steps described in
the previous question?
7. What are the advantages and disadvantages of buying
Whole Foods for Amazon?
8. What are the challenges facing Walmart and Amazon?
9. What are the similarities in this situation and what
happened when Walmart unseated Kmart?
10. What should each company do, going forward?
11. Who do you think will win?
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Amazon Revenues and Net Profits 2015-2019
Fiscal year is January-December. All
2015 2016 2017 2018 2019
values USD millions.

Sales/Revenue 107.01B 135.99B 177.87B 232.89B 280.52B

Gross Income 35.36B 47.72B 65.93B 93.73B 114.99B

Net Income 596 M 2.37B 3.03B 10.07B 11.59B

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Walmart Revenues and Net Profits 2016-2020

Fiscal year is February-

January. All values USD 2016 2017 2018 2019 2020
millions.

Sales/Revenue 482.13B 485.14B 499.91B 514.41B 523.96B

Gross Income 121.15B 123.89B 126.51B 129.1B 129.36B

Net Income 14.69B 13.64B 9.86B 6.67B 14.88B

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Amazon Revenue Source 2020
Revenues 2020
18%

61%

27% North America

International
AWS

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 Amazon Profits 2020
Profit 2020

38%

59%

North America
International
AWS

3%
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Growth of Ecommerce and Retail in
the US
$523 B $598 B

2019
2018

$3780 B
$3626 B

$4040 B $861 B
Red – Total retail sales US
2020 Blue – Ecommerce sales US

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 Recitation 11
• End of module 1

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Questions?

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