Done by DERKAOUI kenza and EL BAKKAL manal

3.13/ Analyze Walmart and amazon.com using the competitive forces and value chain models

To analyze Walmart and Amazon.com, let’s examine their competitive forces model and value chain
models.

 The competitive forces model:

Concerning the rivalry, both of Walmart and Amazon.com are facing a rude competition from other
retailers. Concerning the bargaining of customers, Walmart's vast customer base and high network
of physical stores give it considerable bargaining power over buyers. Additionally, Walmart's EDLP
(Everyday Low Price) strategy appeals to price-sensitive consumers. The same thing goes for
Amazon.com that has a high level of bargaining of customers due to its variety of products and
competitive pricing. Concerning the bargaining power of suppliers, both of Walmart and
Amazon.com maintain a high level in this field. However, in certain categories, such as electronics
and media, Amazon relies heavily on major suppliers, which may exert some leverage.

Concerning the power of substitutes, both Walmart and Amazon.com face moderate threats from
substitutes. Concerning the threats of new entrants, is low in both companies. For Walmart, high
capital requirements, economies of scale, and established brand loyalty prevent it from this threat.
For Amazon.com, extensive infrastructure, technological prowess, and strong brand recognition
create significant barriers for new entrants.

 The value chain models:

Concerning the inbound logistics, Both Walmart and Amazon have robust inbound logistics
operations, with sophisticated supply chain networks to source products from suppliers and
manufacturers efficiently. Concerning the outbound logistics, Amazon.com is opting for a close
proximity, is aggregating orders to specific locations and is maintaining a local focus. For Walmart,
one of its strategies is having the less possible amount of links in the supply chains, as well as
creating strategic partnerships with vendors. Concerning the marketing and sales, Walmart and
Amazon employ diverse marketing and sales strategies to attract and retain customers, including
advertising, promotions, loyalty programs, and personalized recommendations.

Concerning the service, both of them place a strong emphasis on customer service, offering features
such as easy returns, responsive support, and fast shipping options to enhance the shopping
experience. Concerning the procurement, Walmart and Amazon engage in strategic procurement
practices to source goods and services from suppliers worldwide, negotiating favorable terms and
ensuring product quality and availability. Concerning technology and innovation, Both Walmart and
Amazon invest heavily in technology and innovation to optimize their value chains, improve
operational efficiency, and enhance customer experience. Concerning the human resources, they
both focus on recruiting, training, and retaining talent to support their operations and strategic
objectives, fostering a culture of innovation, diversity, and continuous improvement.

3.14/ Compare Walmart and Amazon’s business models and business strategies:
For business models, Amazon operates as an e-business, their mission is to provide a place for
customers where they can find practically every product they can think of without having to leave to
purchase the item in a store. Walmart operates as a traditional brick-and-mortar retailer with a large
network of physical stores across the United States and other countries. The company's business
model emphasizes offering a wide assortment of products at low prices through its stores,
supercenters, and warehouse clubs (Sam's Club). Walmart has also expanded its e-commerce
operations in recent years, with a focus on integrating its online and offline channels to provide Omni
channel shopping experiences for customers.

For business strategies, Amazon prioritizes customer satisfaction and loyalty by offering a vast
selection of products, competitive pricing, and fast shipping options. Amazon invests heavily in
technology and innovation to drive efficiency, improve operations, and enhance customer
experience. Amazon has also diversified its business beyond e-commerce into areas such as cloud
computing (AWS), digital content (Amazon Prime Video), smart devices (Amazon Echo), and
healthcare (Amazon Pharmacy), aiming to capture new growth opportunities and expand its
ecosystem. Amazon has a strong international presence, with operations in multiple countries and
regions, allowing the company to tap into new markets and reach a broader customer base.

Concerning Walmart its core strategy revolves around offering everyday low prices (EDLP) to attract
price-sensitive customers and drive sales volume. The company leverages its scale and bargaining
power to negotiate lower prices with suppliers and pass on savings to customers. Walmart focuses
on integrating its online and offline channels to provide seamless shopping experiences for
customers. Initiatives such as online grocery pickup, same-day delivery, and curbside pickup enable
customers to shop whenever and wherever they prefer. Walmart has expanded its portfolio of
private label brands across various categories, offering customers affordable alternatives to national
brands while also improving profit margins for the company. And finally, Walmart has made
commitments to sustainability and social responsibility, including initiatives to reduce carbon
emissions, promote diversity and inclusion, and support local communities through philanthropic
efforts.

3.15/ What role does IT play in each of these businesses? How is it helping them refine their
business strategies?

Walmart: 1. Supply Chain Management: Walmart's investment in IT has streamlined its supply chain
operations. For instance, the text mentions Walmart's acquisition of tech firms like Small Society and
One Riot, which likely provide technologies to optimize supply chain processes, such as inventory
management and logistics.

2. E-commerce Development: Walmart's focus on expanding its online presence is evident, which
likely contributes to the development of its e-commerce platform and mobile apps. Additionally, the
text discusses Walmart's Endless Aisle application, demonstrating its efforts to integrate online and
offline shopping experiences using IT.

3. Customer Relationship Management (CRM): Walmart's use of IT for CRM is highlighted through its
acquisition of Yumprint, a recipe technology startup. Yumprint's technology likely enhances
Walmart's ability to analyze customer data, personalize shopping experiences, and improve customer
engagement.
 4. Operational Efficiency: The text mentions Walmart's efforts to improve operational efficiency
through IT, such as the development of applications for mobile and online shopping and the
integration with social networks like Pinterest. These initiatives likely leverage IT to optimize store
operations and enhance customer convenience.

5. Innovation: Walmart's exploration of emerging technologies like AI and ML is evident through its
hiring of engineers and coders, as well as its focus on improving product recommendations and
personalizing the shopping experience using IT. Additionally, Walmart's investment in technologies
like Endless Aisle demonstrates its commitment to innovation in retail through IT.

Amazon:

1. E-commerce Platform:Amazon's IT infrastructure powers its e-commerce platform, enabling

features like personalized recommendations based on user behavior. The text mentions Amazon's
Fire Phone, which utilizes advanced technologies like face tracking and AI-driven features to enhance
the mobile shopping experience.

2. logistics and Fulfillment: Amazon's use of IT to manage its logistics network is highlighted through
its expansion of fulfillment centers and same-day delivery services. The text mentions Amazon's
focus on building more fulfillment centers closer to urban centers, which likely leverages IT for
optimization and efficiency.

3. Customer Experience: Amazon's commitment to customer experience is supported by its IT-driven

features like one-click ordering and 24/7 customer support through platforms like Mayday.
Additionally, Amazon's use of automatically driven technologies like Firefly enhances the shopping
experience by enabling quick product discovery and seamless purchasing.

In summary, both Walmart and Amazon leverage information technology across various aspects of
their businesses to refine their strategies, enhance operational efficiency, and drive innovation in the
competitive retail landscape.

3.16/ Will Walmart be successful against Amazon.com?

1. Physical Presence Advantage: Walmart's extensive network of physical stores provides a

significant advantage over Amazon. While Amazon focuses primarily on e-commerce, Walmart's
stores offer instant gratification and convenience to customers. Approximately two-thirds of the U.S.
population live within five miles of a Walmart store, giving it unparalleled accessibility

2. Integration of Online and Offline Channels: Walmart's efforts to integrate online and offline
channels demonstrate a strategic approach to leveraging its physical presence. Initiatives like in-store
pickup and lockers for online orders capitalize on the convenience of physical locations while offering
the flexibility of online shopping

3. Investment in Technology: Walmart's substantial investment in technology, including acquisitions

of tech firms and development of innovative applications, signifies a commitment to enhancing its
online capabilities. The Endless Aisle application and the Pay With Cash program exemplify Walmart's
efforts to leverage technology for seamless shopping experiences
4. Focus on Customer Base: Walmart's traditional customer base, primarily bargain hunters, is being
targeted through technological advancements. The Pay With Cash program caters to customers
without credit cards, enhancing inclusivity and accessibility

5. Challenges from Amazon's Dominance: Despite Walmart's strengths, Amazon's dominance in e-

commerce and continuous innovation pose significant challenges. Amazon's focus on customer
experience, advanced logistics, and AI-driven technologies like Firefly and Alexa set a high bar for
competitors

6. Competitive Strategies: Walmart's competitive strategies, such as monitoring prices in real-time

and expanding product offerings, demonstrate agility in responding to market dynamics. However,
Amazon's aggressive expansion into new markets, such as groceries with Amazon Pantry, intensifies
competition

7. Long-Term Viability: Walmart's success against Amazon hinges on its ability to effectively leverage
its physical presence while enhancing its online capabilities. The company must continue to innovate,
invest in technology, and differentiate its offerings to remain competitive in the evolving retail
landscape

In conclusion, while Walmart possesses inherent advantages with its physical presence and strategic
investments in technology, overcoming Amazon's dominance in e-commerce will require sustained
innovation, customer-centric strategies, and seamless integration of online and offline channels.
Success against Amazon is attainable for Walmart, but it will require strategic adaptation and
relentless focus on meeting evolving customer needs in the digital age.