Question

In: Operations Management

In this assignment, you will compare how two companies, within the same industry (Walmart and Amazon)...

In this assignment, you will compare how two companies, within the same industry (Walmart and Amazon) , approach a specific business issue in the workplace. Acceptable issues include: f) diversity, Please include links to sources used.

Solutions

Expert Solution

Walmart is a retail giant in the industry operating across the seas and creating a big furtune out of it. Its the worlds largest and the most influencing retailer.

Some terms that followed to build its empire are as follows.

Efficient Supply Chain

​Walmart's supply chain is one of the world's most efficient supply chain, Walmart uses very less break in between from the warehouse to their store reducing the costs and enhancing the overall profit.

By having an effective supply chain Walmart has successfully developed it advantage over its competitors and in providing different materials to the different places at a very standard time.

Sometimes it would be less than official for the company to have a supply chain dependent organisation because the whole system is depending on the supply chain if a part breaks down then there is a little delay in doing the business.

Strategic partnership

​Strategic partnership is one of main reasons of Walmart's success , Walmart find the best price supplier and ask them if they can fullfil the demand then a long term partnership program is offer which reduces the prices.

Strategic partnerships also provides a solid base walmart. By having different strategic partnerships Walmart at successfully integrated itself into market and merge into the competitors as well.

Sometimes is strategic partnerships also create a problem for the organisation as the partners start to show different characteristics rather than implementing the strategies with the Walmart.

Intuitive inventory storage

​Walmart uses very intuitive way of storing the inventory, It keep its inventory in truck and then later the inventory is loaded to the semi truck without moving them to the warehouse , this broadly increases the efficiency of the transportation and time.

Dependency on the too much Technology and totally depending on the intuitive storage system sometimes leads to failure as they can be technological as well as mechanical error.

Using latest technology

​Walmart uses state of the art sorting and transporting technologies to ensure the required quality and speed it requires and to obtain high profits and and super efficient system.

Technology based environment is always in fear of getting hacked, being misused and being operated by some other person rather than the companies official employees. Depending on too much Technology Kelly Walmart failure in terms of the technological errors.

Walmart used the terms listed above to build an environment for the low cost industry. It focused on the largest group of middle class people and the idea was to provide low cost product with great quality. Walmart provided the best supply and management system which cut down the costs thus customers were getting the products in best price with higher quality.

Walmart's strategy kept evolving according to the time and needs thus Walmart's low cost strategy is very well suited for the industry.

(3) click & buy: online presence only

Amazon has implemented its structure on an online platform. Company has been extremely successful by directly Sourcing from the suppliers and providing these specific product to the customers. This type of implementation increased

Amazon is one of the world's biggest a retailer in online industry. It has enormous operating structure which is spread across the globe. Amazon has successfully developed the best supply chain in the world to provide products to the customer as well as to create a more effective brand identity.

Amazon is the world's leading online retailer hence it has a competitive advantage over the structure of the organisation across different places across the globe.

While developing a strategy which is online focused and use social media as a tool for promotion would be more beneficial for Amazon to create a difference.

Online retailing as well as the offline promotional events would be also beneficial for Amazon as it would provide an offline presence and a solid feedback from the customers.

Buy heavily using Information Technology as a tool to analyse the specific situation and the market, creation of the advertisement strategy would be very beneficial for Amazon to target the customers according to their needs and price points.

Amazon has a verified opportunity of advertising itself it over traditional medium such as television radio and newspaper. By advertising truly over these mediums, amazon can easily gain a competitive advantage which would definitely help it to create a better promotional identity for the Amazon.

By developing and strategy which reflects the product range offered by the Amazon would also help the organisation to grow more prominently into the specific market and to design a better promotional strategy.

P.S.- Please leave a comment if any explanation is needed.


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