Sample Details
Subjects
Business
E-Commerce
Type
Case Study
Reviewed by
IvyPanda Team
Pages
2
Words
677
Facts about Topic
Date of foundation
July 2, 1962
Headquarters
Bentonville, Arkansas,
U.S.
Founder
Sam Walton
Industry
Retail
Products
Auto, Electronics, music, and games,
Movies,
Home and furniture,
Home improvement,
Clothing,
Footwear,
Jewelry,
Toys,
Garden supplies,
Health and beauty,
Pet supplies,
Sporting goods and fitness,
Craft and party supplies,
Photo finishing
Services
Walmart-2-Walmart, Walmart Pay, Walmart.com, Walmart Money, Pickup Today, Financial Services, Card
Famous because of
American multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores
Interesting facts
95% of U.S. shoppers spent money in a Walmart in 2017.
Website
walmart.com

Walmart Company: Role of E-Commerce Case Study

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It is important to note that the role of e-commerce has been increasing over the years, and many companies have recognized that it is necessary to invest in this area. The issue is that many corporations are used to traditional techniques, and it is not an easy task to implement such dramatic changes (Manion, 2015).

Wal-Mart is currently using an omnichannel. For example, clients may buy products with the use of modern technologies. Online and mobile sales are closely connected with traditional stores that are used as fulfillment centers. Moreover, it may be viewed as an efficient approach because customers are provided with numerous ways in which they can make a purchase. It is imperative to understand that the approach that has been used by the company has been incredibly profitable and allowed the corporation to expand.

One of the biggest strengths of the strategy is flexibility. Another advantage that needs to be mentioned is that the company does not have to invest in facilities that would be used to store products. One of the most significant benefits is that Wal-Mart is capable of making particular changes or alterations to the strategy if it is necessary. For instance, it is planning to combine both channels to increase its presence in the online market (The case for Omni-channel retail commerce, 2014).

However, the issue is that the current approach may not be viewed as efficient in the long-term. One of the core aspects that should not be overlooked is that online sales have changed some of the principles of such businesses, and it may not be an easy task to adjust in some cases. The problem is that Wal-Mart positions itself as a retailer that sells the cheapest products. However, many online stores have prices that are significantly lower, and any customer may use the Internet to make a comparison and base their decisions on the data that is available (Pettypiece, 2015). Furthermore, it is important to provide clients with a range of benefits such as discounts that would reward loyalty that is shown.

Also, many think that Wal-Mart will not be capable of competing with such companies as Amazon because they are too far ahead when it comes to e-commerce, and the situation is not expected to change anytime soon (Tabuchi, 2015). Moreover, it is paramount to mention that competitors have managed to achieve a bigger growth in this sector, and this should be viewed as an enormous issue by Wal-Mart because it is evident that numerous opportunities are associated with e-commerce (Baird, 2015).

It is important to understand that such companies as Wal-Mart are pressured by online retailers because they are growing and expanding at rapid rates. The convenience of such purchases should not be disregarded, and the corporation has recognized the need for promotional activities, and they are especially efficient on particular dates. Another issue that needs to be discussed is that distributive networks that have been developed by competitors are incredibly useful. One of the factors that should not be disregarded is that most of the warehouses that are owned by these companies have been optimized to increase the efficiency of online sales.

On the other hand, Wal-Mart still uses outdated approaches, and it may be hard to catch up (Kwatinetz, 2014). The biggest problem that should not be disregarded is that the corporation does not devote enough attention to the cost to serve, and it is entirely possible that the focus on this aspect would help the enterprise to get an enormous competitive advantage (Baird, 2015).

In conclusion, it is evident that the current approach is not efficient, and numerous changes will be necessary because the enterprise has recognized that the need to invest in e-commerce is critical at this point. The issue is that many companies have managed to gain advantageous positions on the market, and it may be hard to compete with them. However, Wal-Mart has access to enormous amounts of resources and has built long-term relationships with manufacturers, and the need to collaborate on such projects should not be disregarded.

References

Baird, N. (2015). . Forbes. Web.

Kwatinetz, M. (2014). Fortune. Web.

Manion, J. (2015). . Web.

Pettypiece, S. (2015). . Web.

Tabuchi, H. (2015). . The New York Times. Web.

The case for Omni-channel retail commerce. (2014). Web.

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IvyPanda. (2020, July 8). Walmart Company: Role of E-Commerce. https://ivypanda.com/essays/walmart-company-role-of-e-commerce/

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"Walmart Company: Role of E-Commerce." IvyPanda, 8 July 2020, ivypanda.com/essays/walmart-company-role-of-e-commerce/.

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IvyPanda. (2020) 'Walmart Company: Role of E-Commerce'. 8 July.

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IvyPanda. 2020. "Walmart Company: Role of E-Commerce." July 8, 2020. https://ivypanda.com/essays/walmart-company-role-of-e-commerce/.

1. IvyPanda. "Walmart Company: Role of E-Commerce." July 8, 2020. https://ivypanda.com/essays/walmart-company-role-of-e-commerce/.


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IvyPanda. "Walmart Company: Role of E-Commerce." July 8, 2020. https://ivypanda.com/essays/walmart-company-role-of-e-commerce/.

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