Question

In: Operations Management

compare the amazon , eBay , walmart e-commerce business models which is the strongest and why...

compare the amazon , eBay , walmart e-commerce business models which is the strongest and why please explain your answer.

Solutions

Expert Solution

If we compare the business model of the three e-commerce companies i.e. Amazon, eBay, Wal-Mart, I am of the opinion that the strongest business model is possessed by Amazon.

If we look among all these three players which one of the major players in e-commerce, the ultimate answer comes out to be Amazon. Since the early 1990s, the development and growth of Amazon from a small online bookseller to one of the largest retailing firm in the world are quite phenomenal. It is, in fact, the largest e-retailer in the world. It is increasingly adding the assortment of goods and services in its product line i.e. books, garments, electronics, toys and so on. As the pricing on the Amazon is quite competitive thus there are many who believe Amazon to be the Wal-Mart of the e-commerce world.

In the year 2010, the emergence of Wal-Mart into e-commerce segment poised some serious challenges to the superiority of Amazon but Wal-Mart is a relatively new entrant in this segment and there is a tough fight between Wal-Mart and Amazon to be the leading e-commerce organization in the world. Despite the highly competitive pricing and an all-out attack by Wal-Mart of Amazon, the organization is still by far the number 1 in the e-tailing segment.

E-bay is also in the muddle and is trying to find its space but the competition of being the no. 1 seems to be contested between Amazon and Wal-Mart. Recently, Amazon has focused more on its delivery system and is now even using drones for the delivery of the product. Customer satisfaction is its utmost priority with the best quality of products and services.


Related Solutions

Amazon Vs Walmart which giant will dominate E-Commerce?
Amazon Vs Walmart which giant will dominate E-Commerce?
Introduce companies – (Amazon, Walmart, Target, eBay)
Introduce companies – (Amazon, Walmart, Target, eBay)
Why did Amazon expand its business from bookselling to e-commerce and then to e-publishing, electronic devices...
Why did Amazon expand its business from bookselling to e-commerce and then to e-publishing, electronic devices and cloud computing?
analysis line 17 to 21 RATIOS ANALYSIS Management Effectiveness (%) E. commerce Amazon EBay 17) Return...
analysis line 17 to 21 RATIOS ANALYSIS Management Effectiveness (%) E. commerce Amazon EBay 17) Return On Assets 7.16% 7.34% 8.61% 18) Return On Investment 9.71% 11.66% 10.41% 19) Return On Equity 15.72% 21.12% 34.55% Dividends     20) Dividend Yield 17.20% 0 1.39% 21) Payout Ratio 0.02% 0 12.60%
10-16 compare walmart and amazon's business models and business strategies
10-16 compare walmart and amazon's business models and business strategies
ANALYSIS each line1 to 5 RATIOSANALYSIS Profitability Ratios (%) E. commerce Amazon EBay 1)Gross Margin 43%...
ANALYSIS each line1 to 5 RATIOSANALYSIS Profitability Ratios (%) E. commerce Amazon EBay 1)Gross Margin 43% 41.27% 77.37% 2)EBITD Margin 0 28.79% 31.48% 3)Operating Margin 9.41% 5.96% 22.17% 4)Pretax Margin 22.33% 5.57% 24.38% 5) Effective Tax Rate 21% 0% 6.99%
Analyze amazon, Walmart and eBay using the value chain and competitive forces model
Analyze amazon, Walmart and eBay using the value chain and competitive forces model
Walmart and Amazon Duke It Out for E-commerce Supremacy. Pages 411-413. Select and answer only ONE...
Walmart and Amazon Duke It Out for E-commerce Supremacy. Pages 411-413. Select and answer only ONE Case Study Discussion Question. 10-16 compare walmart and amazon's business models and business strategies
Define e-commerce and describe its advantages, disadvantages, and business models What are the advantages of business-to-business...
Define e-commerce and describe its advantages, disadvantages, and business models What are the advantages of business-to-business (B2B) e-commerce? Describe at least two categories of social networks and online media that collectively constitute social commerce.
Amazon started as an e-commerce book site and has now become agiant e-commerce retailer with...
Amazon started as an e-commerce book site and has now become a giant e-commerce retailer with wide range of product offerings including music/movie, toys, electronics, software, and home improvement equipment among others. Amazon's analytics team develops state-ofthe-art analytical solutions (predictive and prescriptive) to maintain customer relations by recommending books based on customer purchase history, sending reminders at holiday time, and permitting customers to review and comment on books. To ensure market share while keeping inventory cost low, Amazon has done...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT