Wal-Mart and Amazon essay

Wal-Martand Amazon

Analyzethe case study comparing Wal-mart and Amazon`s business models andbusiness strategies.

Thetwo giant firms dwell on the provision of goods to their customersthrough the internet. Wal-mart attracts the immense number ofcustomers using the business strategy of the everyday low process.Additionally, the firm has retail units distributed all over thegeography of the United States. The company manipulates its huge sizeto cut off prices and drive home a profit. The industry can losemoney selling a hot product at very low margins when compared to theaverage prices offered by Amazon and still make money on the strengthof a huge quantity of items it sells. Wal-Mart has a deep insurgencyin the shipping of the products bought by the customers, unlike inAmazon where the customers wait for an item after they place theirorder. Moreover, the two firms increase their investments on theonline business, especially Wal-Mart spending immense cash to acquiretechnology firms. The two firms work tirelessly to capture the modernday market structure by utilizing the internet resource whoseavailability is to everyone with a mobile device. Additionally, thetwo firms test and acquire new technologies, each either with amission to attract more customers to get to their stores, physical orover the internet.

Explainthe role that information technology plays in each of thesebusinesses and describe the role of the various IT professionalsinvolved in this case

Thetwo firms utilize technological breakthroughs and experts to attractmore customers and elevate their sales. Wal-Mart originated fromphysical retails and developed with the everyday low cost andeveryday low prices policies to acquire the global recognition.Amazon started out as a sell for books but has today ventured to sellalmost everything a person needs. Technology manipulation attractsmore business, as Amazon have so far created Kindle e-book reader toincrease additionally on its unmatched breadth of selection, fast andreliable shipping, and low prices. Growth in IT makes the two giantonline retailers to compete heavily in e-commerce. Wal-Mart investsheavily in IT to develop its website and improve the experience foronline shoppers. Wal-Mart extends to hire code writers and engineersto help improve the product recommendations to their websitevisitors. Further technological and IT development play a role togather more customers from the smartphones used by the customers.Information Technology helps exploit the hugeresource offered by the internet connection across the nation toreach as many customers as possible, to create more platforms toretain the loyalty of the customers, and offer propositions to thecustomers to keep on increasing the sales of the company.

Explainhow IT helps influence Wal-mart and Amazon`s organizationalstrategies

ITaids Wal-Mart through the various processes of productdifferentiation to suit the needs of the recurrent shoppers and helpsoffer the market niche of the fast moving products in the market. TheIT and the involvement of the two firms is the incorporation ofe-commerce in the hugely online retailing business. The incorporationof IT cuts down Wal-Mart the transaction and agency costs. Thecompanies now shape their strategies and market approach strategiesdeepening on the information collected from the IT systems. The ITsystems guide in decision making for the two firms. Amazon reliesentirely on the IT to move the various range of commodities in thehugely online shops compared to the physical layout of Wal-Mart allacross the nation. Amazon being the largest online retailer uses ITto venture to the Wal-Mart created turf, and uses IT to stockmerchandise traditionally sold by Wal-Mart.