1. Analyze Amazon.

com and
Walmart using the value chain and
competitive forces models
Value chain model of the foremost common business level are:

- Being a producer of the product with low product prices:

*purchasing the upscale food market chain

*Purchasing Whole Foods helps Amazon become a major player in the grocery industry.

-Differentiate their product and services

*Products : Analyze Amazon.com and Walmart are both chain stores that sell a wide
variety of products, such as food, household goods, hand-carried goods, ... and products
that suit human needs.

*Services : In order to attract a lot of customers, service is an indispensable part, such

as fast payment service to help customers not have to wait, fast and convenient safe
delivery service, discount services. or try all kinds of products ... the purpose of the
service is to make customers feel comfortable and fast when buying.

- Ever-changing the scope of the competition either by means that of increasing its
market reach to the world market and to slim the market.

The market capture is also done very well by the two businesses. Sometimes they want
to expand the market abroad to find customers, create great profits for the business. At
other times, they narrow the market for the purpose of letting customers remember
them. and loyally buy products from them.

->The value chain model, a model that specializes in primary and support activities that
add price to products and services within which the data system is best applied to realize
a competitive advantage.

Competitive forces model, wont to describe the interaction of external influences,

specific threats, and opportunities that have an effect on the structure of the business by:

· Provide technology that allows competitors to contend in terms of worth and

new players within the market.

· Improve the data obtainable to customers in terms of accelerating the

negotiation power on the worth

· Reduce power provider

· Substitute merchandise.

Both Amazon and Walmart have incredible leverage over their suppliers due to the
breadth of their supply for similar products. This gives them both the ability to drive down
the prices they pay for their suppliers’ products to then offer the savings to their
customers .

-Some of Walmart's competitive advantages from a value chain perspective include:

distribution capabilities : efficient distribution (e.g. cross docking), predominance of

Walmart’s own distribution centers and “inside-out” location strategy

Partnership relationship with suppliers : integrates suppliers via IT & treats them well in
terms of pricing, they are more partners than “value takers”

advanced data mining : active collection and usage of customer purchase behavior info

workforce culture : customer-oriented workforce motivated through generous monetary

participation and belief in Walmart’s culture

EDLP : maintenance of “Everyday Low Prices”

-Some of Amazon's competitive advantages from a value chain perspective include:

Strong technological infrastructure with a single platform

High investments in technology development (e.g., Kindle)

to best leverage digital products

Great product forecasting system

Print on demand

Constantly soliciting suggestions on new products

Easy and fast payment system

24 hour operations