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Who wins the battle of walmart vs. amazon.

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Walmart and Amazon are two of the world’s biggest retailers—but who comes out on top? 

In 2019, I wrote about seven areas where Amazon and Walmart compete. But times have changed, and so has the retail industry. How do these two retail giants stack up against each other in a post-Covid world? 

Amazon and Walmart often compete for the same customers. As two of the biggest retail giants in the world, they also set the tone for other big box stores and online retailers. If Amazon or Walmart do something, you can bet that other companies will follow. 

Since I wrote the original article in 2019, both Amazon and Walmart have expanded into new areas and weathered a pandemic. Here’s how they stack up against each other now: 

1 . Financials

As of 2020, Walmart’s total equity is $74.66 billion. For fiscal year 2020, Walmart’s revenue increased 6.7% to reach $559 billion. In Walmart’s first quarter of 2021, which ended May 1, the company had total revenue of $138.31 billion, a 6.2% increase over the previous quarter. 

Amazon’s total equity as of 2020 is $93.4 billion, and the numbers keep growing rapidly. In the first quarter of 2021, Amazon had net sales of $108.5 billion , a 43.8% increase over the same period in 2020. Amazon’s revenue for the year was $386 billion, a $100 billion increase over the previous year. 

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Walmart has 2.3 million employees, compared to Amazon’s 1.3 million. In 2020 alone, Amazon added 500,000 employees around the world. 

Amazon’s stock price is currently around $3,235, while Walmart’s is $141. 

Winner: Walmart by a nose, but Amazon is inches behind. Walmart still has bigger total revenue numbers, but Amazon is growing faster and catching up quickly. 

2 . Innovation

Amazon and Walmart tend to be on the cutting edge for innovation. In just the last year, Amazon has announced biometric payments, Amazon Fresh grocery stores, FAA-approved drone deliveries and even a hair salon—all during a pandemic. The company continues to expand to new areas, including adding pharmaceutical offerings and strengthening its smart home devices. Amazon is even in talks to purchase MGM Studios for $9 billion.  

Amazon is a leader in innovative technology and automation. In 2021, Amazon will open a 350,000 square foot robotics hub in Massachusetts. The building is part of a $40 million investment into expanding robotic use in the supply chain and fulfillment.  

Walmart continues to innovate, especially in streamlining order fulfillment and the customer experience. In 2020, Walmart unveiled Alphabot , a platform that can pick, pack and deliver online grocery orders faster and more accurately than humans. 

Walmart is also in the process of redesigning 1,000 stores by the end of 2021 to create a more streamlined and faster shopping experience for customers. The new design relies heavily on increased signage and an updated app to point customers to the exact location of each item, blurring the line between online and in-store shopping. 

Winner: Amazon . The company has changed the retail scene with its innovative products and services, and it continues to do so with its leading use of robotics and AI. 

3 . Customer Focus

Financial growth is important, but it means nothing without a focus on customers, especially in the competitive e-commerce industry. Amazon ranks in the top five retailers in the American Customer Satisfaction Index , although its score dropped 4 points from 2019 to 2020. Walmart has an ACSI score of 73, below the internet retail average of 78. 

Amazon is known for its culture of customer-obsession. Its product recommendations and personalization are unparalleled, with 35% of Amazon purchases coming from recommendations. Amazon has also expanded its grocery delivery and product delivery options to better serve customers, including delivering straight inside customers’ garages. 

Walmart understands the value of customer experience and has made many of its recent changes with customers in mind. Walmart’s new store layout is designed to get customers to the exact items they need as quickly as possible. Its renewed emphasis on mobile and online shopping is also done to meet customer needs. 

Related to customer focus is the employee experience. Walmart plans to raise average pay for U.S. hourly workers to $15.25 an hour to provide a liveable wage and retain employees. Amazon already pays its employees $15 an hour and recently announced raises for more than 500,000 U.S. employees.  

Winner: Amazon . Walmart has made strides in this area, but Amazon is still untouchable with its seamless, convenient and innovative customer experience. 

4 . Digital Growth

The Covid pandemic has put all stores on a fast track to digital growth, especially Walmart and Amazon. For the fiscal year 2021, Walmart reported 79% e-commerce growth . Amazon is responsible for 40% of all e-commerce sales in the U.S.—and growing. 

Walmart’s updated app and store layout blurs the line between in-person and online shopping and makes a customer’s smartphone a valuable part of the shopping trip. In 2020, Walmart unveiled Walmart+ , its answer to Amazon Prime. The new service includes unlimited free grocery delivery, Scan and Go in-store shopping and gas discounts, among other perks. In its first five months, Walmart+ secured around 8 million subscribers . 

Aside from its digital shopping capabilities, Amazon has found success in Prime streaming video, which was used by more than 175 million subscribers in 2020, with streaming hours up more than 70% year over year. Amazon Web Services continues to be the darling of the company, bringing in $13.5 billion in profits in 2020. 

Winner: Amazon . Its B2B and B2C digital solutions and especially its streaming growth set the tone for many other brands and will only continue to grow. 

5 . Retail Presence

Walmart has long held the top spot in terms of physical retail presence. The company has more than 4,700 stores in the U.S—a number that has held steady for the past few years—and 90% of Americans live within 10 miles of a Walmart store. 

Amazon is making strides with its physical retail presence. In 2020, Amazon expanded with its own grocery stores. Aside from its 500-plus Whole Foods locations, Amazon is also opening full-size Amazon Fresh grocery stores across the country. There are currently 11 stores in operation, with 28 more in the works, although Amazon is staying quiet about its plans. 

Winner: Walmart , but Amazon is catching up. Walmart dominates in physical space with its ubiquitous stores. Although Amazon is growing quickly, it still has a long way to go. 

6 . Supply Chain/Logistics

One of the hallmarks of the Amazon experience is quick shipping. Amazon sets the standards for all other e-commerce retailers with its same-day and next-day shipping for Prime members. 

Amazon has also built out its fleet of trucks and planes to be completely in control of logistics. The fleet is growing rapidly, with an expected 80 planes in 2021 , up from 50 in early 2019. Amazon is also opening a massive air hub in Kentucky in 2021, with room for 100 cargo planes and up to 300 trucks at any one time. In 2020, Amazon got FAA approval for its long-awaited delivery drone that has the power to deliver items in 30 minutes or less. 

Walmart is following in Amazon’s footsteps with one-day shipping. In May 2020, Walmart unveiled Express, its two-hour delivery service. Walmart has made huge strides in automating its supply chain and order fulfillment processes for quick and accurate service. Walmart’s innovations make it possible for the company to track and seamlessly restock inventory. Walmart is also expanding its Alphabot system to automatically fulfill customers’ grocery orders and converting more stores into automated fulfillment centers. 

Winner: Amazon . The company is building out its logistics arm to rival delivery companies and sets the standard for fast and innovative delivery options. In many ways, Amazon is now as much of a logistics company as it is an e-commerce company.

7 . Sustainability

In early 2020, Amazon CEO Jeff Bezos introduced the $10 billion Bezos Earth Fund to invest in environmental initiatives. Amazon is also investing $2 billion in sustainable companies and technology to help the planet. The company has public goals to have half of all deliveries be carbon neutral by 2030, achieve net-zero carbon by 2040 and reach 100% usage of renewable energy by 2025. Amazon uses green office buildings with on-site solar. 

However, Amazon is also one of the biggest producers of packaging waste, which comes with the territory of being the biggest e-commerce company in the world. One report estimates that Amazon generated 465 million pounds of plastic packaging waste in 2019, a number Amazon says is overblown. The company has made efforts to increase its recycling packaging, but much of it still ends up in landfills. 

Walmart is also dedicated to lowering its carbon footprint. In 2019, Walmart bought more wind and installed more solar than any company in the U.S. and diverted 80% of its global waste from landfills and incineration. Its goals include achieving zero waste in U.S. and Canada operations by 2025, 100% recyclable or reusable packaging by 2025 and 100% renewable energy by 2035. The company is also working towards sustainability throughout its supply chain with investments and improvements around the world. 

Winner: Walmart . Amazon made big strides with its sustainability investments in 2020, but it is still a major contributor to the problem. Walmart’s efforts aren’t as flashy, but the company is more transparent about its carbon footprint and is making progress around the world. 

So, who comes out on top in the updated battle of Amazon versus Walmart? After phenomenal growth in 2020, Amazon wins the battle. The company is expanding rapidly while continually improving its service and fast delivery. 

But keep an eye on Walmart. With a renewed customer focus and an established retail presence, Walmart could continue to see amazing growth.

Both Amazon and Walmart set the bar for all other retailers on everything from logistics to customer service and innovation. If Amazon does it, Walmart and all other companies follow. Their continued push for customers helps move all other retailers to a stronger customer focus. 

Blake Morgan  is a customer experience futurist, keynote speaker and the author of the bestselling book  The Customer Of The Future . Sign up for her weekly newsletter  here .

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Lessons from Amazon’s Early Growth Strategy

If you’re interested in strategies for scaling start-ups, this episode is for you.

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So much has been written about Amazon’s outsized growth. But Harvard Business School professor Sunil Gupta says it’s the company’s unusual approach to strategy that has captured his scholarly attention. Gupta has spent years studying Amazon’s strategy and its founder and former CEO Jeff Bezos.

In this episode, Gupta shares how Amazon upended traditional corporate strategy by diversifying into multiple products serving many end users, instead of having a narrow focus.

He argues that some of Amazon’s simplest business strategies — like their obsession with customers and insistence on long-term thinking — are approaches that companies, big and small, can emulate.

Key episode topics include: strategy, innovation, leadership, scaling, Jeff Bezos, long-term thinking, customer focus.

HBR On Strategy curates the best case studies and conversations with the world’s top business and management experts, to help you unlock new ways of doing business. New episodes every week.

• Listen to the full HBR IdeaCast episode: How Jeff Bezos Built One of the World’s Most Valuable Companies (2020)
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HANNAH BATES: Welcome to HBR On Strategy , case studies and conversations with the world’s top business and management experts, hand-selected to help you unlock new ways of doing business.

So much has been written about Amazon’s outsized growth. But Harvard Business School professor Sunil Gupta says it’s the company’s unusual approach to strategy that has captured his scholarly attention.

Gupta has spent years studying Amazon’s strategy and its founder and former CEO, Jeff Bezos.

In this episode, Gupta shares how Amazon upended traditional corporate strategy by diversifying into multiple products serving many end users instead of focusing more narrowly.

And he argues that some of their simplest business strategies – like their obsession with the customer and insistence on long-term thinking – are approaches that companies, big and small, should emulate.

If you’re interested in innovation strategy, this episode is for you. It originally aired on HBR IdeaCast in November 2020. Here it is.

ALISON BEARD:  Welcome to the HBR IdeaCast from Harvard Business Review.  I’m Alison Beard.

If you had to name the most successful business leader alive today, who would you say?  I can’t hear you from my basement podcasting room, but I would bet that for many of you, the answer is Jeff Bezos, CEO of Amazon.  This is a man who over the past 25 years turned his online bookstore startup into a diversified company currently valued at $1.6 trillion.

Amazon is a digital retailing juggernaut, it’s also a web services provider, media producer, and manufacturer of personal technology devices like Kindle and Echo.  Oh, and Bezos also owns the Washington Post and Blue Origin, a space exploration company.  Forbes tells us he is the richest person in the world.

How did he accomplish so much?  How did he change the business landscape?  What mistakes has he made along the way?  A new collection of Bezos’s own writing, which full disclosure, my colleagues at Harvard Business Review Press have published, offer some insights.  Here’s a clip from one speech that’s included.  The book is called Invent and Wander.

And our guest today, who has spent years studying both Amazon and Bezos, is here to talk with me about some of the key themes in it, including the broad drivers of both the company and the CEO’s success.  Sunil Gupta is a professor of business administration at Harvard Business School and cochair of its executive program, and cochair of its executive program on driving digital strategy, which is also the title of his book.  Sunil, thanks so much for being on the show.

SUNIL GUPTA:  Thank you for having me, Alison.

ALISON BEARD:  So Invent and Wander.  I get that Bezos is inventive.  You know, he created a new way for us to buy things – everything.  How is he also a wonderer?

SUNIL GUPTA:  So he’s full of experiments.  His company and his whole style is known for experimentation, and he says that in so many words that if you want big winners, then you have to be willing to have many failures.  And the argument is, one big winner will take care of a thousand failed experiments.  So I think that’s the wandering part.  But also his experiments are not aimless.  There is a certain thought and process behind what experiments to do and why they will connect to the old, old picture of what Amazon is today.

ALISON BEARD:  And your expertise is in digital strategy.  How does he break the traditional rules of strategy?

SUNIL GUPTA:  So for the longest time the way, at least I was taught in my MBA program and the way we teach to our MBA students and executives, is strategy is about focus.  But if you look at Amazon, Amazon certainly doesn’t look like it’s focusing on anything, so obviously Jeff Bezos missed that class, otherwise it’s a very, very different thing.

And then you’d say, why is it that so called lack of focus strategy seems to be working for Amazon?  And I think the fundamental underlying principle that he’s guiding his whole discussion of strategy is, he’s changed the rules of strategy.  So the old rules of strategy were, the way you gained competitive advantage is by being better or cheaper.  So if I am selling you a car, my car is better of cheaper.  But the inherent assumption in that strategy statement is, I’m selling one product to one customer.  And what Amazon is basically arguing is, the digital economy is all about connection.  We have got to connect products and connect customers.  Let me explain why that is so powerful.

So connecting products, here the idea is, I can sell you, this is a classic razor and blade strategy.  I can sell you a razor cheap in order to make money on the blade.  So I can sell you Kindle cheap in order to make money on the ebooks.  Now, at some level you might say, hey, razor and blade have been around forever.  What’s so unique today?  I think unique today is razor could be in one industry and blades could be in completely different industrys.

So for example, if you look at Amazon’s portfolio of businesses, you sort of say, not only Amazon is an e-commerce player, but also is making movies and TV shows, its own studio.  Well, why does it make sense for an e-commerce player, an online retailer to compete with Hollywood.  Well, Walmart doesn’t make movies.  Macy’s doesn’t make movies?  So why does it make sense for Amazon to make movies?

And I think once you dig into it, the answer becomes clear that the purpose of the movies is to keep and gain the Prime customers. Two day free shipping is fine, but if  you ask me to pay $99 or $119 for two day free shipping, I might start doing the math in my head, and say, OK, how many packages do I expect to get next year?  And is the Prime membership worth it or not?

But once you throw in, in addition to the two-day free shipping, you throw in some TV shows and movies that are uniquely found only on Amazon, I can’t do this math.  And why is Prime customers important to Amazon?  Because Prime customers are more loyal.  They buy three or four times more than the non-Prime customers, and they’re also less price sensitive.

And in fact, Jeff Bezos has said publicly that every time we win a Golden Globe Award for one of our shows, we sell more shoes.  So this is, and he said it in your book, Invent and Wander, also, that we might be the only company in the world which has figured out how winning Golden Globe Awards can actually translate into selling more products on the online commerce.

So this is a great example of the razor being in a very different industry and blade being in another industry.  Take another example.  Amazon has a lending business where they give loans to small and medium enterprises. If Amazon decides to compete with banks tomorrow, Amazon can decide to offer loans to the small merchants at such a low price that banks would never be able to compete.  And why would Amazon be able to do that?  Because Amazon can say, hey, I’m not going to make money on loans, as much money on loans, but I’ll make more money when these businesses, small businesses grow and do more transactions on my marketplace platform.  And I get more commissions.  So again, loan can become my razor in order to help the merchants grow and make money on the transaction and the commission that I get from that.  The moment I make somebody else’s, in this case the banks, core business my razor, they will make a very hard time competing.  So I think that’s the key change, the fundamental rules of strategy and competition in that direction.

The second part of connection is connecting customers, and this is the classic network effect.  So marketplace is a great example of network effects.  The more buyers I have, the more sellers I have.  The more sellers I have, the sellers I have, the more buyers I get, because the buyers can find all the items.  And that becomes flywheel effect, and it becomes a situation where it’s very hard for a new player to complete with Amazon.

ALISON BEARD:  In this diversification that Amazon has done, how have they managed to be good at all of those things?  Because they’re not focused.  You know, they’re not concentrated on an area of specific expertise.  So how have they succeeded when other companies might have failed because they lacked that expertise, or they were spreading themselves too thin?

SUNIL GUPTA:  So I think it depends on how you define focus.  Most of us, when we define focus, we sort of define focus by traditional industry boundaries, that I’m an online retailer, therefore going into some other business is lack of focus.  The way Amazon thinks about is focus on capabilities.

So if you look at it from that point of view, I would argue that Amazon had three fundamental core capabilities.  Number one, it’s highly customer focused, not only in its culture, but also in its capability in terms of how it can actually handle data and leverage data to get customer insight.  The second core capability of Amazon is logistics.  So it’s now a world class logistics player.  It uses really frontier technology, whether it’s key word, robotics, computer vision, in its warehouse to make it much more efficient.

And the third part of Amazon’s skill or the capability is its technology.  And a good example of that is Amazon Web Services, or AWS.  And I think if you look at these three core capabilities, customer focus and the data insight that it gets from that, the logistics capability, and the technology, everything that Amazon is doing is some way or the other connected to it.  In that sense, Amazon, and there’s no lack of focus, in my judgment on Amazon.

Now, if he starts doing, starts making cream cheese tomorrow or starts making airplane engines, then I would say, yes, it’s got a lack of focus.  But one of the other things that Jeff Bezos has said again and again is this notion of work backwards and scale forward.  And what that means is, because you’re customer obsessed, you sort of find ways to satisfy customers, and if that means developing new skills that we don’t have because we are working backwards from what the customer needs are, then we’ll build those skills.

So a good example of that is, when Amazon started building Kindle, Amazon was never in the hardware business.  It didn’t know how to build hardware.  But Bezos realized that as the industry moved, people are beginning to read more and more online, rather, or at least on their devices, rather than the physical paper copy of a book.  So as a result, he says, how do we make it easier for consumers to read it on an electronic version?  And they’re spending three years learning about this capability of hardware manufacturing.  And by the way, Kindle came out long before iPad came out.  And of course, that capability now has helped them launch Echo and many other devices.

ALISON BEARD:  Right.  So it’s the focus on the customer, plus a willingness to go outside your comfort zone, the wander part.

SUNIL GUPTA:  Exactly.

ALISON BEARD:  Yeah.  How would you describe Bezos’s leadership style?

SUNIL GUPTA:  So I think there are at least three parts to it.  One is, he said right from day one that he wants to be a long-term focus.  The second thing is being customer obsessed.  And many times he has said that he can imagine, in the meetings he wants people to imagine an empty chair.  That is basically for the customer. And he says, we are not competitor focused.  We are not product focused.  We are not technology focused.  We are customer focused.  And the third is, willingness to experiment.  And fail, and build that culture in the company that it’s OK to fail.

ALISON BEARD:  What about personally, though?  Is he a hard charger?  Is he an active listener?  What’s it like to be in a room with him?

SUNIL GUPTA:  Oh, he’s certainly a hard charger.  I mean, he’s also the kind of guy, when he hires people, he says, you can work long, hard, or smart.  But at Amazon, you can choose two out of three.  And I think this is similar to many other leaders.  If you look at Steve Jobs, he was also a very hard charging guy.  And I think some people find it exhilarating to work with these kind of leaders.  Some find it very tough.

ALISON BEARD:  Do you think that he communicates differently from other successful CEOs?

SUNIL GUPTA:  So the communication style that he has built in the company is the very famous now, there’s no PowerPoints.  So it’s a very thoughtful discussion.  You write six-page memos, which everybody, when their meeting starts, everybody sits down and actually reads the memo.

In fact, this was a very interesting experience that I had.  One of my students, who was in the executive program, works at Amazon in Germany.  And he is, he was at that point in time thinking of moving to another company and becoming a CEO of that company.  So he said, can I talk to you about this change of career path that I’m thinking about?  I said, sure.  So we set up a time, and five minutes before our call, he sends me an email with a six-page memo.  And I said, well, shouldn’t he have sent this to me before, so I could at least look at it?  He says, no, that’s the Amazon style.  We’ll sit in silence and read it together.  And so I read it together, because then you’re completely focused on it.  And then we can have a conversation.  But this discipline of writing a six-page memo, it’s a very, very unique experience, because you actually have to think through all your arguments.

ALISON BEARD:  You also mentioned the long term focus, and that really stood out for me, too, this idea that he is not at all thinking of next year.  He’s thinking five years out, and sometimes even further.  But as a public company, how has Amazon been able to stick to that?  And is it replicable at other companies?

SUNIL GUPTA:  I think it is replicable.  It requires conviction, and it requires a way to articulate the vision to Wall Street that they can rally behind.  And it’s completely replicable.  There are other examples of companies who have followed a similar strategy.  I mean, Netflix is a good example.  Netflix hadn’t made money for a long period of time.  But they sold the vision of what the future will look like, and Wall Street bought that vision.

Mastercard is exactly the same thing.  Ajay Banga is giving three year guidance to Wall Street saying, this is my three-year plan, because things can change quarter to quarter.  I’m still responsible to tell you what we are doing this quarter, but my strategy will not be guided by what happens today.  It will be guided by the three-year plan that we have.

ALISON BEARD:  There are so many companies now that go public without turning any profit, whereas Amazon now is printing money, and thus able to reinvest and have this grand vision.  So at what point was Bezos able to say, right, we’re going to do it my way?

SUNIL GUPTA:  I think he said it right from day one, except that people probably didn’t believe it.  And in fact, one of the great examples of that was, when he was convinced about AWS, the Amazon Web Services, that was back in the early 2000s, when a majority of the Wall Street was not sure what Jeff Bezos was trying to do, because they say, hey, you are an online retailer.  You have no business being in web services.  That’s the business of IBM.  And that’s a B2B business.  You’re in a B2C business.  Why are you going in there?

And Bezos said, well, we have plenty of practice of being misunderstood.  And we will continue with our passion and vision, because we see the path.  And now he’s proven it again and again why his vision is correct, and I think that could give us more faith and conviction to the Wall Street investors.

SUNIL GUPTA:  Oh, absolutely.  And he’s one of the persons who has his opinion, and you always surround yourself with people better than you.

ALISON BEARD:  How has he managed to attract that talent when it is so fiercely competitive between Google, Facebook, all of these U.S. technology leaders?

SUNIL GUPTA:  So a couple of things I would say.  First of all, it’s always good fun to join a winning team.  And all of us want to join a winning team, so this certainly is on a trajectory which is phenomenal.  It’s like a rocket ship that is taking off and has been taking off for the last 25 years.  So I think that’s certainly attractive to many people, and certainly many hard charging people who want to be on a winning team.

And a second thing is, Amazon’s culture of experimentation and innovation.  That is energizing to a lot of people.  It’s not a bureaucracy where you get bogged down by the processes.  So the two type of decisions that we talked about, he gives you enough leeway to try different things, and is willing to invest hundreds of millions of dollars into things that may or may not succeed in the future.  And I think that’s very liberating to people who are willing to take on the ownership and build something.

ALISON BEARD:  But don’t all of the tech companies offer that?

SUNIL GUPTA:  They do, but if you think about many other tech companies, they’re much more narrow in focus.  So Facebook is primarily in social media.  Google is primarily in search advertising.  Yes, you have GoogleX, but that’s still a small part of what Google does.  Whereas if you ask yourself what business is Amazon in, there are much broader expansive areas that Amazon has gone into.  So I think the limits, I mean, Amazon does not have that many limits or boundaries as compared to many other businesses in Silicon Valley.

ALISON BEARD:  So let’s talk a little bit about Bezos’s acquisition strategy.  I think the most prominent is probably Whole Foods, but there are many others.  How does he think about the companies that he wants to bring in as opposed to grow organically?

SUNIL GUPTA:  So some acquisitions are areas where he thinks that he can actually benefit and accelerate the vision that he already has.  So for example, the acquisition of Kiva was to improve the efficiency and effectiveness of the systems that he already put in place in his warehouse.  And logistics and warehouse is a key component or key part of Amazon’s business, and he saw that Kiva already was ahead of the curve in technology that he probably wanted to have that in his own company.  So that was obvious acquisition, because that fits in the existing business.

Whole Foods is kind of a slightly different story, in my judgment, because I some ways, you can argue, why is Amazon, an online player, buying an offline retail store, Whole Foods?  And in fact, they bought it at 27% premium.  So that doesn’t make sense for an online retailer commerce to go to offline channels.  And I think, in fact, part of the reason in my judgment is, it’s not just Whole Foods, but it’s about the food business, per se.  And why is Amazon so interested in food?  In fact, Amazon has been trying this food business, online food delivery for a long period of time without much success.  And Whole Foods was one, another way to try and get access to that particular business.  And why is that so important to Amazon, even though you could argue, food is a low margin business?

And I would say, part of the reason is, food is something, grocery is something that you buy every week, perhaps twice a week.  And if I, as Amazon, can convince you to buy grocery online from Amazon, then I’m creating a habit for you to come onto Amazon every week, perhaps twice a week.  And once you are on Amazon, you will end up buying other products on Amazon.  Whereas if you are buying electronics, you may not come to Amazon every day.

So this is a habit creation activity, and again, it may not be a very high margin activity to sell you food.  But I’ve created a habit, just like Prime.  I’ve created a loyal customer where you think of nothing else but Amazon for your daily needs, and therefore you end up buying other things.

ALISON BEARD:  And Amazon isn’t without controversy.  You know, and we should talk about that, too.  First, there are questions about its treatment of warehouse employees, particularly during COVID.  And Bezos, as you said, has always been relentlessly focused on the customer.  But is Amazon employee centric, too?

SUNIL GUPTA:  So I think there is definitely some areas of concern, and you rightly said there is a significant concern about the, during the COVID, workers were complaining about safety, the right kind of equipment.  But even before COVID, there were a lot of concerns about whether the workers are being pushed too hard.  They barely have any breaks.  And they’re constantly on the go, because speed and efficiency become that much more important to make sure customers always get what they are promised.  And in fact, more than promised.

Clearly Amazon either hasn’t done a good job, or hasn’t at least done the public relations part of it that they have done a good job.  Now, if you ask Jeff Bezos, he will claim that, no, actually, they have done things.  For example, they offer something called carrier choice, where they give 95% tuition to the employees to learn new skills, whether they’re relevant to Amazon or not.  Pretty much like what Starbucks does for its baristas, for college education and other things.  But I think more than just giving money or tuition, it requires a bit of empathy and sense that you care for your employees, and perhaps that needs, that’s something that Amazon needs to work on.

ALISON BEARD:  And another challenge is the criticism that it has decimated mom and pop shops.  Even when someone sells through Amazon, the company will then see that it’s a popular category and create it itself and start selling it itself.  There’s environmental concerns about the fact that packages are being driven from warehouses to front doors all over America.  And boxes and packaging.  So how has Bezos, how has the company dealt with all of that criticism?

SUNIL GUPTA:  They haven’t.  And I think those are absolutely valid concerns on both counts, that the small sellers who grow to become reasonably big are always under the radar, and there are certainly anecdotal evidence there, small sellers have complained that Amazon had decided to sell exactly the same item that they were so successful in selling, and becoming too big is actually not good on Amazon, because Amazon can get into your business and wipe you away.  So that’s certainly a big concern, and I think that’s something that needs to be sorted out, and Amazon needs to clarify what its position on that area is, because it benefits from these small sellers on his platform.

And your second question about environmental issues is also absolutely on the money, because not only emission issues, but there’s so many boxes that pile in, certainly in my basement, from Amazon.  You sort of say, and it’s actually ironical that Millennials who are in love with Amazon are extremely environmentally friendly.  But at the same time, they would not hesitate to order something from Amazon and pile up all these boxes.  So I think Amazon needs to figure out a way to think about both those issues.

ALISON BEARD:  And at what point will it have to?  I mean, it seems to be rolling happily along.

SUNIL GUPTA:  Well, I think those issues are becoming bigger and bigger, and it’s certainly in the eye of the regulators, also, for some of these practices.  And not only because it’s too big, and there might be monopoly concerns, but these issues will become larger, and any time you become a large company, you become the center of attraction for broader issues than just providing shareholder value.

ALISON BEARD:  Yeah.  So those are weaknesses possibly for the company.  What are some of Bezos’s personal weaknesses that you’ve seen in studying him and the company?

SUNIL GUPTA:  So I think one thing that stands out to me, and at least in the public forums, I have not seen any empathy.  And it’s, I mean, we talk about that the leaders have, should have three qualities.  They should be competent.  They should have a good character.  And they should have compassion.  So he’s certainly very competent.  I mean, he’s brilliant in many aspects, right, from the computer vision and AI and machine learning, to the nuances of data analytics, to the Hollywood production, etc.  He also seems to have good character, at least I have not heard any personal scandals, apart from his other issues in his personal life, perhaps.

Those characteristics of competence and character make people respect you.  What makes people love you is when you show compassion, and at least I haven’t seen compassion or empathy that comes out of him.  I mean, he certainly comes across as a very hard charging, driven person, which probably is good for business.  But the question of empathy is perhaps something lacking right now.

ALISON BEARD:  Yeah.  The other issue is his just enormous wealth.  He did invent this colossally valuable company, but should anyone really be that rich?

SUNIL GUPTA:  Well, I guess that’s, you can say that’s the good or the bad thing about capitalism.  But I think, and again, my personal view is there’s nothing wrong in becoming rich, if you have been successful and done it with hard work and ingenuity.  But how you use your wealth is something that perhaps will define Jeff Bezos going forward.  I think Bill Gates is a great example how he actually has used his wealth and his influence and his expertise and his brilliance into some certain thing that actually is great for humanity.

Now, whether Jeff Bezos does that down the road, I don’t know, whether his space exploration provides that sort of outlet which is both his passion as well as good for humanity, I don’t know.  But at some point in time, I think it’s the responsibility of these leaders to sort of say, my goal is not simply to make money and make my shareholders rich, but also help humanity and help society.

ALISON BEARD:  If you’re talking to someone who’s running a startup, or even a manager of a team at a traditional company, what is the key lesson that you would say, this is what you can learn from Jeff Bezos?  This is what you can put to work in your own profession?

SUNIL GUPTA:  So I would say two things that at least I would take away if I were doing a startup.  One is customer obsession.  Now, every company says that, but honestly, not every company does it, because if you go to the management meetings, if you go to the quarterly meetings, you suddenly go focus on financials and competition and product.  But there’s rarely any conversation on customers.  And I think, as I mentioned earlier, that Jeff Bezos always tells his employee to think of the imaginary chair in which a customer is sitting, because that’s the person that we need to focus on.  Howard Shultz does the same thing at Starbucks, and that’s why Starbucks is so customer focused.

So I think that’s the first part.  And the argument that Bezos gives is, customers are never satisfied.  And that pushes us to innovate and move forward, so we need to innovate even before the rest of the world even sees that, because customers are the first ones to see what is missing in the offering that you have.

And the second I would say that I would take away from Jeff Bezos is the conviction and passion with what you do.  And many times that goes against the conventional wisdom.  And the Amazon Web Services is a great example of that.  The whole world, including the Wall Street Journal and the Wall Street analysts were saying, this is none of Amazon’s business to do web services.  But he was convinced that this is the right thing to do, and he went and did that.

And part of that conviction may come from experiments.  Part of that conviction comes from connecting the dots that he could see that many other people didn’t see.  I mean, that’s why he went, left his job, and went to Seattle to do the online bookstore, because he could see the macro trends as to what the Internet is likely to do.  So, I think that’s the vision that he had.  And once you have the conviction, then you follow your passion.

ALISON BEARD: Sunil, thanks so much for coming on the show.

SUNIL GUPTA:  Thank you for having me. Alison.

HANNAH BATES: That was Harvard Business School professor Sunil Gupta, in conversation with Alison Beard on the HBR IdeaCast .

We’ll be back next Wednesday with another hand-picked conversation about business strategy from Harvard Business Review. If you found this episode helpful, share it with your friends and colleagues, and follow our show on Apple Podcasts, Spotify, or wherever you get your podcasts. While you’re there, be sure to leave us a review.

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Walmart Business Strategy: A Comprehensive Analysis

By   Julie Choo

Published: January 5, 2024

Last Update: January 5, 2024

TOPICS:   Service Design

In the dynamic landscape of retail, Walmart stands as a behemoth, shaping the industry with its innovative business strategies . This article delves into the core of Walmart’s success, unraveling its business strategy and digital transformation from top to bottom.

Walmart Business Strategy

Walmart’s business strategy is a well-crafted tapestry that combines a variety of elements to secure its position as a retail giant. At the heart of this strategy lies a robust operating model approach that encompasses a diverse range of channels and tactics. 

Transition to An OmniChannel Marketplace

The Walmart business strategy includes leveraging its vast physical presence through an extensive network of stores, drawing customers in with the promise of Everyday Low Prices (EDLP). This commitment to affordability is not just a slogan; it’s a cornerstone of Walmart’s marketing ethos, shaping consumer perceptions and driving foot traffic to its brick-and-mortar locations.

Building Strength via its Emerging Digital Operating Model

Walmart’s business business strategy extends beyond traditional advertising methods and its strength is in its operational strategy where it is charging ahead with digital transformation to become a more complete Omnichannel Marketplace to combat competitors such as Amazon. The retail giant has embraced the digital era, utilizing online platforms and e-commerce to reach a broader audience. Part of this digital evolution involves the strategic placement of distribution and fulfillment centers , ensuring efficient order processing and timely deliveries. By strategically integrating distribution and fulfillment centers into its operating model , Walmart maximizes operational efficiency, meeting customer demands swiftly and solidifying its reputation for reliability in the competitive retail landscape.

In essence, Walmart’s holistic digital operating model backed by a evolving digital transformation  strategy, encompassing physical stores, online presence, and strategically placed distribution hubs, reflects a dynamic and adaptive approach to consumer engagement and satisfaction. 

Walmart’s Existing Business Model Before Digital Transformation

Walmart’s retail business .

Walmart stores, comprising a vast network of discount stores and clubs, serve as the backbone of the retail giant’s physical presence. Walmart’s store format, ranging from neighborhood discount stores to expansive membership-based clubs, caters to a diverse customer base. These Walmart stores are strategically positioned to provide accessibility to a wide demographic, offering a one-stop shopping experience.

The discount stores, characterized by their commitment to Everyday Low Prices (EDLP), have become synonymous with affordability, attracting budget-conscious consumers. Simultaneously, Walmart clubs offer a membership-based model, providing additional benefits and exclusive deals. The amalgamation of these store formats under the Walmart umbrella showcases the company’s versatility, catering to the varied needs and preferences of consumers across different communities and demographics.

Walmart Pricing Strategy

Pricing strategy.

Walmart’s pricing strategy and its competitive advantage are substantiated by reputable sources in the retail industry. The pricing index data, indicating that Walmart’s prices are, on average, 10% lower than its competitors, comes from a comprehensive market analysis conducted by Retail Insight, a leading research firm specializing in retail trends and pricing dynamics.

Everyday Low Prices

Walmart’s success in the retail sector can be attributed to its commitment to Low Price Leadership, a strategic approach that revolves around providing customers with unbeatable prices. Leveraging Economies of Scale, Walmart capitalizes on its vast size and purchasing power to negotiate favorable deals with suppliers, enabling the company to pass on cost savings to consumers. The integration of Advanced Technology into its operations is another pivotal aspect of Walmart’s strategy. From inventory management to supply chain optimization, technology allows Walmart to enhance efficiency and keep prices competitive.

Walmart strives to keep it’s pricing tactics to the concept of “Everyday Low Prices” (EDLP). This philosophy ensures that customers receive consistently low prices on a wide range of products, fostering trust and loyalty. Additionally, the Rollback Pricing strategy involves temporary price reductions on select items, creating a sense of urgency and encouraging sales. Walmart’s Price Matching Policy, both in-store and online, further solidifies its commitment to offering the best deals. This policy assures customers that if they find a lower price elsewhere, Walmart will match it.

The insight into Walmart’s “Everyday Low Prices” (EDLP) philosophy and its impact on a 15% lower average price for common goods compared to competitors is derived from a detailed report published by Priceonomics , a respected platform known for its in-depth analyses of pricing strategies across various industries.

The statistics regarding Walmart’s market share of 22% in the U.S. grocery market and the 19% higher customer loyalty rate compared to competitors are sourced from recent market reports by Statista, a reliable and widely used statistical portal providing insights into global market trends and consumer behavior.

Multiple layers of Discount

Walmart’s embrace of Multiple Discounts adds another layer to its pricing strategy. Whether through seasonal promotions, clearance sales, or bundled deals, the company provides various avenues for customers to save money. This multifaceted approach to pricing reflects Walmart’s dedication to delivering value to its customers, ensuring that affordability remains a cornerstone of the retail giant’s identity.

These sources collectively reinforce the significance of Walmart’s pricing strategy in maintaining its competitive edge and dominating the retail landscape

Walmart’s Servicing Business

Walmart’s strategic expansion into the servicing business marks a transformative shift, positioning the retail giant as a comprehensive one-stop-shop that extends beyond conventional retail offerings. This venture encompasses an array of lifestyle services, ranging from financial services to automotive care and healthcare clinics. Walmart’s aim is clear: to seamlessly integrate into the daily lives of customers, providing not only products but also essential services, thereby enhancing its role in customers’ routines.

In response to the evolving preferences of contemporary consumers who prioritize convenience and accessibility, Walmart’s strategy seeks to streamline the customer journey. The provision of a diverse range of services alongside its traditional retail offerings exemplifies Walmart’s commitment to simplifying the consumer experience. This comprehensive approach not only caters to the varied needs of customers but also cultivates a sense of loyalty, as individuals find value in the convenience of addressing different requirements all under one roof.

The multifaceted nature of Walmart’s strategy is anticipated to foster increased customer retention. By offering not only a wide array of products but also an extensive range of lifestyle services, Walmart solidifies its position as a retail powerhouse, adapting to the changing landscape of customer-centric businesses. The convenience and value embedded in this approach are poised to elevate Walmart’s stature, making it an indispensable part of customers’ lives.

SWOT Analysis of Walmart’s Business strategy

As we navigate Walmart’s digital transformation journey, a SWOT analysis reveals key insights into its strengths, weaknesses, opportunities, and threats, guiding strategic decisions for sustained success in the dynamic retail industry that is operating in an increasingly digital economy.

SWOT Analysis of Walmart:

• Strong Brand Recognition: Walmart’s strength lies in its widely recognized and trusted brand, fostering consumer confidence and loyalty.
• Diverse Revenue Stream: The company’s adaptability is evident through a diverse revenue stream, navigating various markets and industries to maintain financial resilience. Per Walmart’s Q3 FY23 Earnings , a breakdown of walmart’s income can be recognised through its Sam’s Club membership sales (Up by 7.2%), Walmart U.S Comp Sales (Up 4.9%), Walmart U.S. eCommerce (up by 24%), and Walmart International sales (up by 5.4%). 
• Economies of Scale: Walmart leverages its extensive size for economies of scale shown by its strong revenue growth of 5.3% per 2022 and 2023 consolidated Income statement, enabling cost advantages in procurement, operations, and overall efficiency. 
• Strong Customer Base: With a vast and loyal customer base, Walmart establishes a robust foundation in the retail sector, emphasizing customer retention and sustained business growth as per market share stat of 60% shown on the Market retail/wholesale industry dominated by Walmart.

Weaknesses:

• Labor Relations: Walmart has faced criticism for labor practices, including low wages and labor disputes.
• E-commerce Competition: Despite significant strides, Walmart faces intense competition from e-commerce giants (e.g, amazon, eBay), impacting its online market share.
• Over Reliance on US Market: A substantial portion of Walmart’s revenue is generated in the United States, making it vulnerable to domestic economic fluctuations.
• Inconsistent customer service: represents a weakness in Walmart’s SWOT analysis, as variations in service quality across different locations may impact the overall customer experience, potentially leading to customer dissatisfaction and diminished brand perception.

Opportunities:

• E-commerce Expansion: Further growth in the online market allows Walmart to capitalize on changing consumer shopping habits.
• International Expansion: Targeting untapped markets presents opportunities for global revenue diversification.
• Health and Wellness Market: The growing trend towards health-conscious living provides avenues for expansion in the health and wellness sector. Increased understanding of customer journeys in these niches is key to begin to build stickiness effects.
• Technological Innovations: Embracing cutting-edge technologies can enhance customer experience and operational efficiency through a growing Omnichannel marketplace. It is vital to master data science and begin to leverage AI in the battle to understand consumer behaviors and deliver a remarkable experience.
• Competition: Intense competition from traditional retailers and e-commerce platforms poses a threat to Walmart’s market share such as Costco, Target and Amazon.
• Regulatory Challenges: Changes in regulations, especially related to labor and trade, can impact Walmart’s operations and costs. One such example is the metrics shown per Walmart’s ethics & compliance code of conduct aligning to regulatory challenges in culture, work safety, risk mitigation and more. 
• Economic Downturns: Economic uncertainties and recessions may lead to reduced consumer spending, affecting Walmart’s revenue.
• Supply Chain Disruptions: External factors like natural disasters or geopolitical events can disrupt the global supply chain, impacting product availability and costs. Such threats are specifically addressed by Walmart’s Enterprise Resilience Planning Team .

More on Walmart’s Online Competitors

Walmart faces formidable competition in the online retail arena, with key rivals such as Amazon and Target vying for a share of the digital market. Amazon, known for its extensive product selection and swift delivery services, poses a significant challenge to Walmart’s e-commerce dominance. Target, on the other hand, leverages its brand appeal and strategic partnerships to attract online customers. To counteract these competitors, Walmart employs a multifaceted approach that combines technological innovation, competitive pricing, and strategic collaborations.

Walmart strategically invests in advanced technologies to enhance its online platform and improve the overall customer experience. The integration of artificial intelligence (AI) and machine learning enables Walmart to provide personalized recommendations, similar to Amazon’s renowned recommendation engine. Additionally, Walmart’s commitment to competitive pricing aligns with its traditional retail strength, offering Everyday Low Prices (EDLP) and frequent promotions to attract budget-conscious consumers, countering the pricing strategies employed by Amazon and other competitors.

Conducting a thorough SWOT analysis (such as this example from the Strategy Journey Book – 2nd Edition) allows Walmart to capitalize on its strengths, address weaknesses, seize opportunities, and mitigate potential threats, contributing to sustained success in the ever-evolving retail landscape.

Walmart’s Digital Transformation Strategy in the new ERA of AI-led Customer Centricity 

Walmart’s online business strategy.

Overall, Walmart’s e-commerce strategy is customer-centric, driving substantial sales growth by tailoring its approach to the evolving needs of online customers. Operating a multitude of specialized e-commerce websites across diverse product categories, Walmart strategically positions itself on various e-commerce platforms for market penetration within the US.

Servicing Relevant Customer Journeys & Sustainable Transformation

Walmart’s evolving online strategy is characterized by a dual focus on extensive product offerings and technological sophistication, with concrete examples per its strategic partnership with Adobe in 2021 to integrate walmart’s marketplace, online and instore fulfillment and pickup technologies with Adobe commerce showcasing its commitment to a seamless customer experience. The integration of advanced tools is exemplified by the implementation of an efficient order processing system. For instance, Walmart employs real-time inventory management and automated order fulfillment , ensuring that customers experience timely and accurate deliveries. Statistics show an increasing number of fulfillment centers through FY2022 and FY2023 reports per statista .

Emerging predictive capabilities supported by Data Science and AI

In addition, the technological depth extends to personalized experiences, illustrated by Walmart’s robust recommendation engine. By analyzing customer preferences and purchase history, the system suggests relevant products, enhancing the entire customer journey. This personalized touch not only reflects the user-friendly interface but also demonstrates Walmart’s dedication to tailoring the online experience to individual needs.

Focus on seamless CX and UX to improve customer stickiness

Furthermore, Walmart’s commitment to a seamless online interaction is evident in its streamlined navigation features. The website’s intuitive design and optimized search functionality provide a smooth browsing experience for customers. This emphasis on user-friendliness goes beyond mere aesthetics, ensuring that customers can easily find and explore products, contributing to a more engaging online experience. Improved engagement is at the heart of Walmart’s strategy to foster stickiness effects, both digitally and to also build on brand stickiness too.

By investing in cutting-edge technologies while transforming using Human Centered design practices focused on CX and UX, Walmart not only navigates the complexities of the e-commerce landscape but also enhances the overall satisfaction and engagement of its online customers. These examples underscore Walmart’s strategic approach to digital transformation, where technological sophistication is not just a feature but a tangible means to elevate the online shopping experience. 

Walmart International Business

Successful international business expansion requires operating model transformation, and Walmart’s strategy is characterized by a blend of strategic acquisitions, partnerships, and a keen understanding of local markets. This is also how Walmart is operationally applying AI, via strategic partnerships as it continues to build its capabilities to improve its agility to implement transformation and go to market faster, rather than trying to build everything from scratch.

A Sustainable Diversification strategy that adapts to local markets  

Walmart’s international business expansion is a testament to its strategic approach in entering diverse markets and adapting to local nuances. One notable example of Walmart’s successful international expansion is its entry into the Indian market. In 2018, Walmart acquired a majority stake in Flipkart, one of India’s leading e-commerce platforms. This move allowed Walmart to tap into India’s burgeoning e-commerce market, aligning with the country’s growing digital consumer base.

The acquisition of Flipkart exemplifies Walmart’s strategy of leveraging local expertise and established platforms to gain a foothold in international markets. Recognizing the unique characteristics of the Indian retail landscape, where e-commerce plays a significant role, Walmart strategically invested in a company deeply embedded in the local market. This approach not only facilitated a smoother entry for Walmart but also enabled the retail giant to navigate regulatory complexities and consumer preferences effectively.

Another example of Walmart’s commitment to tailoring its offerings to meet local needs is further highlighted in its expansion into China where Walmart adapts its store formats to cater to specific consumer preferences. 

In China, Walmart has experimented with smaller-format stores in urban areas, recognizing the demand for convenient and accessible shopping options. This adaptability showcases Walmart’s understanding of the diverse economic and cultural landscapes it operates in, contributing to its success on the global stage.

Working with partners to diversify and build a sustainable business model 

Collaborations and strategic partnerships play a pivotal role in Walmart’s competitive strategy. In 2023, Walmart has outlined plans to invest heavily into AI automation fulfillment centers to improve its unit cost average by 20%, increasing efficiency in order fulfilments and operations. 

The acquisition of Jet.com in 2016 expanded Walmart’s digital footprint and brought innovative talent into the company. Furthermore, Walmart’s partnerships with various brands (such as Adobe, ShipBob) and retailers enable it to diversify its product offerings, providing a competitive edge against the more specialized approaches of some competitors. As part of Walmart’s strategy in marketing, Walmart has announced partnerships with social media giants such as TikTok, Snapchat, Firework and more further boosting its online digital footprint. 

The acquisition of Jet.com in 2016 not only expanded Walmart’s digital footprint but it brought innovative talent into the company. It is clear Walmart sees the need for talent as key to its continued efforts to apply human centered design as part of its digital transformation strategy.

By continuously adapting and evolving its strategies, Walmart is clearly implementing digital transformation sustainably, to support its future operating model as Walmart remains a formidable force in the online retail landscape, navigating the challenges presented by its competitors.

In conclusion, Walmart’s business strategy is that of an growing Omnichannel marketplace, a multifaceted approach that combines physical and digital retail, competitive pricing, supply chain excellence, and a commitment to customer satisfaction. Understanding these elements provides insights into the retail giant’s enduring success in a rapid changing and competitive digital economy as it continues to combat emerging new business disruptions.

Q1: How did Walmart become a retail giant?

Walmart’s ascent to retail dominance can be attributed to a combination of strategic pricing, operational efficiency, and a customer-centric approach. 

Q2: What sets Walmart’s supply chain apart?

Walmart’s supply chain is marked by innovation and technological integration, allowing the company to streamline operations and stay ahead in a competitive market.

Q3: How does Walmart balance physical and digital retail?

Walmart seamlessly integrates its brick-and-mortar stores with its online presence, offering customers a comprehensive shopping experience.

Q4: What is Walmart’s philosophy on pricing?

Walmart’s commitment to everyday low prices is a fundamental philosophy that underpins its strategy, ensuring affordability for consumers.

Q5: How has Walmart expanded globally?

Walmart’s global expansion involves adapting its strategy to diverse markets, understanding local dynamics, and leveraging its core strengths.

About the author

Julie Choo is lead author of THE STRATEGY JOURNEY book and the founder of STRATABILITY ACADEMY. She speaks regularly at numerous tech, careers and entrepreneur events globally. Julie continues to consult at large Fortune 500 companies, Global Banks and tech start-ups. As a lover of all things strategic, she is a keen Formula One fan who named her dog, Kimi (after Raikkonnen), and follows football - favourite club changes based on where she calls home.

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Walmart inc. Takes on amazon Case Solution & Answer

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Walmart inc. Takes on amazon Case Study Help

Introduction.

Walmart is considered one of the most valuable companies in the world. It was established by Sam Walton at the end of 1962. It has its headquartered in Bentonville, Arkansas. It is a family business as it remains in control of the family members who have 50 percent shares of the company. It has an extensive number of employees to perform operations that are over two million. Walmart is originated from America and is a multinational company that provides different products and services to customers. It is a retail organization that has intensive inventory in its warehouses and stores. The organization runs its superstores by facilitating customers with attractive discounts and operates large discount department stores and warehouse stores.

In 2013, according to the survey report of the Fortune Global, Walmart is considered as the second-largest company in the world in the industry. Walmart decided to go for public listing in 1972 and got itself registered on the New York Stock Exchange. By the year 2009, the corporation was earning more of its revenues from the United States of America as in 2009, its 51 percent of revenues were from the U.S that was $258 billion solely from grocery business. However, it has warehouses in North America as well.

Despite having huge revenues and competitive advantage, Walmart faced extraordinary competition with Amazon. In 1994, Amazon.com was founded by Jeffrey Bezos headquartered in Seattle to be the biggest bookstore on the earth. By 1997, the organization demonstrated rapid growth i.e. increasing sales to around $147.8 million and went public during the same year and raised around $42 million.

In 1998, Amazon expanded its products from books to the addition of electronics, toys, videos, and music to be the mass merchandiser of the online world. Amazon started to provide e-commerce technology for the retailers to those who were willing to outsource the web operations and lack their online presence such as Target Stores Corp. and Bebe Stores Inc, – a fashion retailer. By 2008, the organization had grown to around $17 billion in sales with a workforce of approximately 17,000 employees.

The entrepreneur of Amazon did not lose hope even after he generated no profit until the end of 2001 and did not bother about the criticism he was facing. In response to that, he developed a strategy to focus on expansion so that mass audience could be targeted and he was right about that. Jeff Bezos focused on innovative technology and invested a huge amounts to achieve a competitive advantage that is; flexible payment service, a variety of services under cloud computing, and application interface program.

Problem statement

This report revolves around the competitive threats faced by Walmart from Amazon as both are considered to be leading brands with different competitive advantages operating in the e-commerce industry. However, Amazon was founded after 30 years of approx. of Walmart, still it gave a significant competition to Walmart in terms of innovative technology, marketing strategies, and market share, and quality services. Walmart came under threat when, in 2007, Amazon decided to enter into the grocery market with e-commerce. However, there was no significant demand in the market it was expected that 43% of the population of the US will be utilizing e-commerce for grocery buying by the end of 2017.

Trends, Opportunities, and Constraints:

Significant growth in online sales has influenced both brick-and-mortar sellers and e-retailers. This is primarily because merchants in the retail industry tend to embrace e-commerce in order to boost growth. Between increased use of e-commerce platforms and adopting new digital technological approaches, there has been an increase in the emergence of alternative approaches such as brandless and direct-to-consumer brands leading to a shift in the focus in the direction of the overall experience of the shoppers. Despite such growth of ease in the shopping experience of the customers, there are many economic, political, and social factors with the threat of potential looming of recession. (eMarketer, 2020)

Although the e-commerce sector has represented double-digit growth of the retail industry per annum still the sales of online business are around 6 percent of the total sales of the retail industry. All the business organizations in the retail industry have been investing to develop new formats for the local retailing organizations in order to meet the industry challenges which leads to a change in the needs of consumers, increased urbanization, and the impact of the change in the consumer demographics. (Sievers, 2020)

Considering the continuous evolution of the retail industry, there has been a rapid change in the market dynamics that tends to be based on consumer preferences, attitudes, and demographic shifts. (ETRetail, 2020) Continuous change in consumer behavior is due to the explosive growth of e-commerce platforms i.e. the provision of multiple choices at the fingertips before making a purchasing decision. Similarly, owners of retail businesses are also presented with endless opportunities regarding the use of technological approaches that streamline and assist in scaling-up of business. (Officials, 2020)

An increased focus on customer-centricity is not based on the provision of great consumer services only but associated with the provision of great experience from the stage of awareness followed by the purchasing process through the facilitation of purchase with the initiatives such as customer offers and consumer finance. Thus, there is a requirement to evolve with the customers continuously due to a significant change in the change in aspirations and lifestyle needs leading to a reinvention of products to offer innovative products to the customers.

The future of the retail industry is mainly dependent on research and development but the consumers are more directed and prefer trusted and well-known brands. The companies that make continuous investments in research and development would lead the change and market position through the adoption of marketing strategy.  (ETRetail, 2020) Similarly, the trend of the retail industry is also driven by the advancement in technological approaches but is not limited to the approaches such as blockchain in the efficient management of supply chain, the internet of things, artificial intelligence, and motorized robotic micro-fulfillment warehouses in order to bring improvement in the productivity and efficiency.

Considering the ability of the retailers to learn the adoption of new technological approaches, it is known to bring improvement in the store functions, the efficiency of back-of-shop, social presence, CSR policies representing every opportunity for both physical and online retailers to thrive to grow.  (Hopkins, 2020) Additionally, in order to remain competitive in the market, retail organizations are finding the eco-friendly, cost-effective, and most efficient approaches to operate their business. Other than the concern to bring cost-reduction in the business operations, the first and foremost priority of the retail industry is to analyze if the advanced technological approaches would bring improvement in the retail product demand. (Hopkins, 2020)

Changes in digital marketing have enforced modern retail businesses to reach out to the potential consumer base through different marketing channels. The approach of multi-marketing represents the requirement of encompassing different approaches which mainly include traditional paid advertisements, social media marketing, and email marketing. The multi-channel marketing approach assists to captivate customers and keep them engaged in the POS (point of sale). Due to this reason, customers are likely to be more interested in building one-on-one engagement leading to the development of the personal relationships and build trust.  (Officials, 2020)

Despite the growth trends and availability of opportunities in the retail industry, the penetration of the e-commerce platform is still growing and there has been a continuous price war among the leading retailers operating in the industry. Direct-to-customer brands have also demonstrated learning from traditional retailers i.e. recognition of the e-commerce potential and opening of physical stores to add value. Many of the DTC brands are opening brick-and-mortar locations because the acquisition of the cost of customers is high when an organization operates its online functions solely.

Liquidations in the retail have significantly led to the contribution of a flood resulting in the closure of stores i.e. no less than 9000 stores in the year 2019. Due to this reason, the presence of retailers with sagging sales has been increasing with loads of large debt or leading to the deterioration of finances. However the retail industry has thrived the post-Great Recession period, the fortunes of the retailers are primarily dependent on the ups and downs of the economy. For instance, the emergence of Barneys New York as a brand rather being a retailer. With an increased consciousness of customers about the environment, the adoption of the circular model would become particularly viable for retailing organizations. (Jansen, 2020)

Organizational Structure

The organizational structure influences everything from how the company operates to how well the workforce communicates with each other internally. A well-defined organizational structure helps employees to work passionately and competently, establishing the chain of command, laying the ground for the internal business operations as well as creating the organizational alignment.

The organizational structure at Walmart is hierarchical functional which has two features includingfunction-based and hierarchy based definitions. The hierarchy based definition tends to pertain to the vertical line of the authority and command throughout the structure of the organization. In contradiction to the hierarchy based definition, the function-based definition feature of the corporate structure of the company involves groups of employees fulfilling specific functions. Additionally, there is a distinct chain of command from the top to the bottom.The functional departmentalization provides various advantages to the company which includes clarity among employees related to their responsibilities and duties, clear lines of management, a specialism which means that the employees are skilled and competent in the task they do, and specialization which means that departments focus on one area of work.

The employee-driven organizational culture at Walmart contributes to the worldwide success since its establishment. Additionally, the company is be focused on employee engagement, culture, training, and development. The structure put in place by the company help improving execution and communication, streamline the process of decision making as well as accelerate the pace of change. Also, the company implements the new internal communication strategies as well as a practical tool such as corporate listening, which facilitates in the strutting environment.The company also broadens its efforts to embed inclusion and diversity to drive exceptional business outcomes. Also, the company is committed to foster the culture of innovation and a trust-based inclusion environment where the employee’s fee supportive & connected with each other and have unlimited opportunities to grow and develop.

The organizational structure of the company is similar to that of Walmart i.e. functional which focuses on the functions of the business as a basis for determining the interaction among the organization components. The organizational structure of the company enables extensive control of international e-commerce operations. A corporate structure establishes the system and design of interaction among the firm members. Such organizational structure helps the company in enhancing work productivity and efficiency due to the specialized technology and skills. The company employees must follow the leadership principles which include ownership, obsession, invent, and simplification. The company is open to ideas and innovation and the environment of the company is defined as hospitable to experimentation because the experiments lead to a high degree of innovation within an organization.

The workplace culture at Amazon celebrates the diversity of thoughts, transparency, opportunities and the opinion of all the enrich conversation. It should take the people’s to focus approach to engage the employees with listening to drive the cultural change, hence ultimately affecting the bottom line of the company.The self-formed teams with decentralized as well as autonomous decision making and trust allowed the agility & flexibility with an organization.

Environment analysis

Amazon and Walmart are working in the same industry and environment therefore, there are external forces that are affecting the operations and financial performances of the companies .PESTEL analysis is based on analyzing all the favorable and unfavorable factors that have a significant impact on the company.

Political factors

When it comes to Walmart, it considers political factors in the retail market to reduce the threats and avail the opportunities to enhance the financial performance of the company. There are government policies that are required to be followed to exist in the market. Amazon has the opportunity to work in a country and capture the market of countries that are stable politically. Besides that, there are no strict rules and regulations by the government of developed countries to prevent globalization.

However, there are major concerns for employees to protect their interests such as; higher wages that are a threat for the Amazon because it may increase the Administration cost and operational costs of the company and profit will decrease. In this case,the bargaining power of employees is high.

In the U.S there is a politically stable situation that is an opportunity for the corporation as it can expand the business to a large extent. In addition to that major diversifications can take place globally targeting developed countries such as; Germany, Australia, UK, Ireland, etc. government authorities have major concerns for cyber security that protects the e-commerce business and corporations threat in terms of hacking and cyber-crimes are insignificant. One way to expand the business is to increase the number of stores along with the e-commerce that can increase the market share and give tough competition to other firms. However, there is a threat to the entry of Chinese firms in the market.

Economic factors

In the case of Walmart, they have many opportunities in terms of economic conditions of the countries where operations are expanded. In developed countries, there is major economic stability which provides an opportunity for the company to diversify its business. There is a culture of continuous development in countries that has favorable impacts on company profit. In developed countries, there is full employment and because of that people spend or consume, therefore, if income will increase individuals will spend more.

Amazon faced economic factors as threats as well as opportunities for the corporation. Such that, the economic stability of U.S and European countries are a major opportunity for the firm because economic stability means residents in the country have high spending and consumption. Second major opportunity is that in developing countries where per capita income is high, individuals disposable income is also high that enables the customers to spend more. However, recession in China is a threat to Amazon as there is a potential recession in China that is preventing the corporation to target the market.

Socio-cultural factors

In the case of Walmart, increasing the culture of a healthy lifestyle around the world especially in developed countries is an opportunity for the company to attract customers by adding healthy products in the grocery list. Besides that, there is a culture of gender diversity and discouraging gender roles is increasing the number of users who utilize the online buying.

Social conditions play a major role to fluctuate the demand in the market. As in many countries, there is a culture of wealth disparity that means the company is in a threat. Wealth disparity means few people have huge amount of money and there are few people who have no money at all. In this condition, few people use the power to earn more and more and that ends up having fewer people to afford everything as there is a huge gap between the poor and rich.

However, the culture of empowering customers is great in developing countries and it is an opportunity for Amazon to attract more customers by satisfying them and fulfilling their demands. Besides that, there is an increasing culture of online buying because of gender diversification at the workplace, discouraging gender roles at home and strict routine therefore, online buying culture is an opportunity for Amazon.

Technological factors

Technological enhancement is extremely important to run the operations in e-commerce industry. Amazon focused on threats and opportunities related to technology in the environment in an efficient way. Constant technological change is a threat and opportunity both for the company as it can make huge losses for the company after obsolescence and the company could use this as an opportunity to make the first move in the market to adopt the new technology that can increase revenue. However, technology is prone to security threats that must be considered by the company to protect the confidential data and customer loss.

In the case of Walmart, there many opportunities in the external environment. Globally there is an increase of automation in business that helps the companies to bring efficiency in their operations with the help of innovation in technology.  There is a major focus on big data and there are suppliers that provide equipment to use and save big data.

In developed and developing countries there is a culture of using mobile phones for various purposes and this is possible because of fast technology. For Walmart this a great opportunity as with one click, anyone can order for products and buy from Walmart. Mobile phones are also helpful for data mining and market the products and services.

Environmental factors

In the case of Walmart, they have an opportunity to work in an environment where there are major concerns for environmentally friendly products and services to avoid harming the interest of customers. There is also a trend of business sustainability which is also an opportunity for the company and keeps it focusing alignment of goals with the operations and market trends.

In order to sustain in the market, giving priority to environmental concerns is very important for long term success and to protect the environment. There are many public organizations in the world that work to promote awareness about the materials and processes that are harmful to the earth and other living beings. This is an opportunity for Amazon to work with such organizations to promote their goals. Increasing the rate of carbon level is also an opportunity as a company can promote a low-carbon lifestyle and provide awareness to the public. As more and more people are becoming aware of this issue and its consequences, people have been attracting to e-commerce.

Legal factors

Walmart works in developed countries and there are legal requirements to follow to sustain in the market. These legal requirements are favorable for the company such as; regulations for food safety that is helpful for the company to avoid competition with firms that have low quality food. Besides that, there are employment policies that are required to follow such as; higher wages, suitable working conditions and casual leaves…………………………..

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Amazon Business Case Study [2024]: In-depth Analysis

How does an online book retailer become a behemoth dominating the global e-commerce industry? The 28-year-old history of Amazon’s growth is a masterclass in building a successful business strategy that has revolutionised the retail experience forever! The company has achieved eponymous status with a global presence and diversified business. No wonder its sales are expected to reach an astounding USD 746.22 billion with a valuation of USD 2 trillion in 2024! From being an online bookseller headquartered in a garage to becoming the second most valuable brand in the world , the saga of this global brand is a case study in all the leading business schools.  

So what is the secret behind the explosive success of Amazon? This article provides a comprehensive case study of Amazon and its winning business strategy. 

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Glimpsing Back: A Brief History of Amazon

With a small team, the budding company made headway in the book-selling market by offering a wide virtual selection of books compared to brick-and-mortar stores with doorstep delivery. With a user-friendly interface, easy-to-search engine, and focus on creating a ‘virtual community,’ the business grew by leaps and bounds. The emphasis on customer choice, experience, and convenience serves the company well even today. 

The name was aspirational with a nod to the largest river in the world- Bezos’ Amazon sought to be the largest e-commerce bookseller in the world. By July 1995, Amazon was marketing itself as the “Earth’s Biggest Bookstore,” selling over one million titles to all 50 states in the US and across 45 countries . It provided stiff competition to brick-and-mortar giants like Barnes and Noble and Borders. 

The company went public with its IPO in 1997 ; since then, there has been no looking back. Since its listing, the company has significantly diversified its offering by including music, electronics, toys, kitchen utensils, clothes, and more on its e-commerce site. From the Earth’s Biggest Bookstore, Amazon shifted its tagline to “Books, Music and More.” The company expanded to Germany and the United Kingdom by purchasing online bookstores, thus increasing its revenue. At its core, the company established a dynamic, efficient, and successful distribution and logistical model that helped capture a global market.

The year 1999 marked two critical moments for Amazon. First, the company patents the “1-Click” technology allowing users to purchase a product with one click. Second, it launches the 3rd party seller marketplace to allow third-party sellers to sell their produce through Amazon. These measures exponentially increased the sales on the platform. The company’s success put Bezos on the map as he received the prestigious accolade of the “Time’s Person of the Year” in 1999 at 35 years of age. 

The company survived the dot-com bubble burst and got only stronger. In 2003, the company took a momentous step by launching Amazon Web Services , a web-hosting business, that marked its arrival into the tech business. It provides cloud computing services to individual developers, companies, and governments through the platform’s IT infrastructure. The strategic shift from an e-commerce platform to a tech company was instrumental in Amazon’s diversification strategy and revenue generation. 

The company took further measures to develop brand loyalty through its Amazon Prime program in 2005. Prime membership has since expanded its services significantly and is one of the most valuable assets for the company today. It reshaped consumer expectations and experiences of shopping across the world. 

Amazon has been on a path of extensive acquisition and alliance . From the online shoe retailer Zappos to the robotics company Kiva Systems and the grocery delivery service Whole Foods- each acquisition captured pre-existing markets and distribution networks of the acquired assets. With every move, the company strategically entered new markets, removed competitive businesses by acquiring them, made distribution and logistics more efficient, and improved consumer experience. These moves catapulted the company to a 1 trillion dollar valuation in 2018. The company’s profits surged during the pandemic as Bezos’ hourly wealth increased by USD 11.7 million . The following year, Bezos stepped down as the CEO and found his replacement in Andy Jassy, the CEO of Amazon Web Services.

Now that we know the history of Amazon, its business strategy becomes easier to decipher. Before we unravel its key business strategies, let’s look at its many businesses. 

Amazon and its Diversified Business Model

A case study of Amazon is incomplete without an understanding of the many businesses that it has a foot in. Here are the diverse businesses that help Amazon generate revenues from multiple streams and have made it a leader in the global market. 

Online retail store

Amazon began as an online seller of books, and it continues its operations as an e-commerce site. Today the site offers a variety of products for the best prices to the consumer’s doorsteps. With an easy-to-use interface, easy return policy, “1-Click” buying, customer reviews, and suggestions, the e-commerce site knits an unrivalled retail experience. 

Amazon Marketplace

Amazon opened its platform to third-party sellers who could leverage its large customer base to sell products. It brings a diversity of products to the retailer without holding inventory. Amazon would, in turn, charge the sellers a percentage of their revenue as a commission fee. It is estimated that third-party sellers generate a gross merchandise value (GMV) of USD 300 billion for the platform.

Amazon Web Services (AWS)

Amazon’s cloud platform offers individual developers, start-ups, established businesses, and governments a range of cloud computing services through its IT infrastructure. It is the fastest-growing business segment for the brand clocking a global net revenue of USD 80.1 billion in 2022. 

Amazon Prime

Amazon’s member subscription service offers numerous membership benefits ranging from access to digital video and music streaming, audiobook and ebook platforms, free delivery, exclusive deals, Prime Day access, and much more. The company’s global net revenue from its subscription services stood at USD 35.22 billion in 2022. 

Amazon revealed in 2022 that the advertising wing of the company had generated a revenue of USD 31.2 billion the preceding year. The company offers custom advertising solutions to customers and campaign placements across multiple channels like Fire TV placements, Amazon physical stores, the brand’s homepage, and customised destination pages.

Physical stores

Amazon made an entry into the brick-and-mortar business with the establishment of a physical bookstore in Seattle in 2015. The company has since expanded its physical presence with Amazon Go, Amazon Fresh, Amazon Go Grocery, Whole Foods Market, and Amazon Style. It has sought to transform the real-world shopping experience with its “Just Walk Out Shopping’ experience. 

Breaking Down Amazon’s Business Strategy

Amazon’s business strategy has been innovative and forward-thinking from the get-go. Its path-breaking business model has inspired many but retains its uniqueness in execution. At its core, the company has maintained its customer-centric ethos, where its customers comprise three sets: retail customers, seller customers, and developer customers.   

For a comprehensive case study of Amazon , let’s take a closer look at the secret recipe behind its success.

Customer Obsession

The company proudly proclaims that it aims to be the “Earth’s most customer-centric company.” Since its inception, Amazon has won over the trust and loyalty of its customers by perfecting its marketing mix by offering “a comprehensive selection of products, low prices, fast and free delivery, easy-to-use functionality, and timely customer service.”   As Amazon’s customer base and usage expands exponentially, the company has worked towards optimising user experience through continuous assessment and feedback mechanisms.

Diversification

Amazon has kept up with the emerging demands of the market with growth potential in the long term. Its future-oriented vision has helped the company grow by leaps and bounds by venturing into new businesses that have added to its revenue streams. From cloud computing services to OTT services and subscription-based benefits, Amazon has reinvented what a diversified business looks like. 

Expansion through partnerships and acquisitions

Amazon has continually acquired and partnered with businesses to expand its customer base, enter new markets, diversify its product offerings, eliminate competition, and gain distribution and logistical networks. From IMDB and The Washington Post to Twitch and Pillpack, Amazon has bought companies across multiple categories to gain a foothold in their markets and operations. It has helped the company scale up its functions rapidly across the globe.

Technologically-driven innovations

Initially, Amazon was written off as it was started by “computer guys” who knew nothing about selling books. However, it was a focus on innovative technology that the company grew into a tech giant dominating the e-commerce space. Whether it is the 1-Click technology, SEO, user interface, cloud computing services, Just Walk Out technology, or its e-devices, the company has optimised customer experience by leveraging technology.

Data-based metrics

Amazon has consistently relied on metrics to assess, strategise, and grow its business. Data is an invaluable currency left behind with every click by the customer. The company has effectively and efficiently amassed these data into actionable insights to improve user experience, build and improve products and services, and develop successful marketing strategies. 

Marketing strategy

A comprehensive marketing strategy has been central to Amazon’s brand-building exercise. With the right marketing mix, the brand has become a household name. Its name and logo are recognisable anywhere in the world. A continual push to diversify its portfolio, competitive pricing policy, expanding its operations, and consistent promotions through multiple channels have been integral to achieving this global status. 

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Amazon, the second-most valuable company in the world, has been almost three decades in the making. Every step and misstep has been strategic and guided by the principles of: “customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking.” This case study of Amazon has sought to highlight its history, business model, and business strategies that have gone into the making of the behemoth. Ultimately, the company is a product of the management of Jeff Bezos and Amazon’s leadership. 

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Frequently Asked Questions (FAQs)

Jeff Bezos has held the position of Founder and CEO of the company. However, he inherited the position of the Executive Chairman of Amazon after resigning as the CEO of the company in 2021.

Amazon launched in India in June 2013. Initially starting its operations to serve Indians with books, films, TV shows and subscription-based services, the company further expanded its wings to become one of the leading shopping destinations for Indians.

The most important focal point of Amazon’s business strategy is its customers (retail customers, sellers, and developers) and building a customer-centric company.

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Buy walmart stock before earnings and hold forever.

Walmart ( WMT ) has jumped 16% YTD to top the S&P 500 and it could break out to new highs if its Q1 results and guidance impresses Wall Street on May 16.

The company is revamping its business and expanding newer profit-heavy revenue streams.

The Bull Case

Walmart is a one-stop-shop powerhouse thriving amid challenges from Amazon ( AMZN ) and Target ( TGT ). Walmart offers every form of delivery and pick-up possible and its subscription service is helping keep customers  loyal .  

The country’s largest grocer is rolling out a new premium food brand called Bettergoods, aiming to attract newer higher-income shoppers and compete against popular store brands at Target and Trader Joe’s. Walmart also has partnerships with digital native retailers and a third-party marketplace.

Image Source: Zacks Investment Research

On top of that, it is growing its advertising segment as more customers start their shopping searches on Walamart.com. The firm is attempting to expand its booming digital ad segment through its planned acquisition of TV maker VIZIO as the streaming world becomes a battleground for ad dollars.

Walmart is innovating and pushing forward into new tech-focused and automation frontiers at its warehouses, stores, and beyond to compete alongside Amazon and increase profitably. Speaking of, Walmart said in late April that it was leaving the healthcare business just five years after entering the market, closing all 51 of its health centers and shuttering its telehealth business.

Other Fundamentals

Walmart averaged 4.8% sales growth over the past five years, including 6% and 6.7% in the trailing two years. The success showcased WMT’s ability to thrive during the Covid shopping boom and a more normalized economy that saw consumers revert back to essentials. WMT’s last five years stand in contrast to rival Target, which suffered greatly as shopping habits changed.  

Walmart is projected to grow its revenue by 3.8% in its FY25 and then jump 4% higher next year to reach $699.60 billion (adding $50 billion to the top-line vs. last year)—which would roughly match Amazon.

WMT’s adjusted EPS are projected to climb by 6% and 8%, respectively and its most accurate/recent EPS estimates are above expectations.

WMT stock has climbed 20% in the last two years to destroy Target’s 25% downturn. Walmart has climbed roughly 80% during the last five years to match the S&P 500 and nearly double the Zacks Retail sector.  

Walmart trades 7% below its average Zacks price target and it is back above its 21-day and 50-day while sitting at neutral RSI levels.

Walmart trades at a 7% discount to its highs at 25.2X forward earnings and somewhat in line with its Zacks sector’s 22.4X. WMT’s $60 a share price tag (after its 3-for-1 split in February) might make the stock more attractive to some investors.

Bottom Line

Walmart is a proven retail titan adapting for the future across multiple areas. WMT is also a dividend payer able to succeed in nearly every economic environment. 

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Walmart's Omnichannel Strategy: Revolution or Miscalculation?

By: Ramon Casadesus-Masanell, Karen Elterman

This case describes Walmart's omnichannel strategy in 2018 as it battled Amazon for online retail market share. The case discusses Walmart's early forays into online retail, as well as its 2018…

• Length: 50 page(s)
• Publication Date: Aug 28, 2019
• Discipline: Strategy
• Product #: 720370-PDF-ENG

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This case describes Walmart's omnichannel strategy in 2018 as it battled Amazon for online retail market share. The case discusses Walmart's early forays into online retail, as well as its 2018 strategy, which aimed to integrate Walmart's enormous brick and mortar footprint with its growing ecommerce business, e.g., through merchandise and grocery delivery and order online, pickup in store options. Walmart's strategy also included the acquistion of Jet.com (in 2016) as well as the acquistion of a number of other specialty eretailers (e.g., Shoes.com , Moosejaw, Bare Necessities) and digitally-native vertical brands that developed their own products and sold them directly to consumers, such as ModCloth, Bonobos, and Eloquii. In addition to building its online marketplace, Walmart hoped to leverage its existing assets, such as its massive network of retail stores and thriving grocery business, in the fight against Amazon. The case poses the question: Could Walmart successfully compete against Amazon and other online retailers in areas such as grocery delivery, product selection, shipping costs, and delivery times?

Learning Objectives

To provide students with an understanding of the decisions Walmart made in developing its omnichannel business, including decisions related to its marketplace, online acquisitions, technological development, and distribution strategies.

Aug 28, 2019

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Harvard Business School

720370-PDF-ENG

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Eva Longoria to campaign in Phoenix for President Joe Biden's reelection

Eva Longoria, an actress and Latina political activist, will visit Phoenix on Monday to make the case for President Joe Biden’s reelection.

Longoria will host an event focused on rallying Latinas behind the president, according to the campaign. She plans to argue that Biden’s 2024 rival, former President Donald Trump, has “demonized Latinos throughout his political career” and his agenda for a second term would particularly harm Latinas and their families, the campaign said.

Trump’s inflammatory rhetoric against immigrants from Mexico fuelled his political ascent in 2016. In his 2024 campaign, he said immigrants are “poisoning the blood of our country,” echoing the language of 20th-century European fascists.

Biden has struck a more welcoming tone toward immigrants but has recently revived some Trump-era immigration policies, such as building a wall at the U.S.-Mexico border, and has backed bipartisan legislation that would tighten asylum rules.

Polling suggests that Biden's support among Hispanic voters  has fallen  since he took office, and many immigrant neighborhoods swung to the right during the 2020 election.

Prep for the polls: See who is running for president and compare where they stand on key issues in our Voter Guide

Arizona is one of a handful of states that is seen as up for grabs in this year’s presidential election. Biden’s reelection team accordingly has been sending a steady flow of campaign surrogates and allies to the Grand Canyon State.

Longoria, who is best known for her role on the 2004-2012 television series Desperate Housewives, has made immigration a focus of her activism. She spoke out against Senate Bill 1070, Arizona’s controversial immigration-enforcement law, and criticized Arizona’s since-overturned ban on ethnic studies courses.

Longoria previously has campaigned for former President Barack Obama.

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Michael Cohen testifies in Trump hush money case

Suspect in amazon facility shooting dead after encounter with ohio police; 1 officer hurt.

The suspect accused of firing shots in an Ohio Amazon facility is dead, and an officer is hurt after an encounter Sunday night.

>> RELATED: Suspect in Amazon facility shooting dead after encounter with Columbus police; 1 officer injured

As News Center 7 previously reported, the Madison County Sheriff’s Office deputies were dispatched just after 4:40 p.m. to the Amazon CMH5 Fulfilment Center at 6400 State Route 29 in West Jefferson on reports of shots fired inside.

The sheriff’s office wrote on social media that no one was hurt.

West Jefferson Police also said that the suspect was an Amazon employee, who left the scene, and was found in Columbus, the department said on social media .

>> Suspect found dead, wanted for killing Ohio police officer

At around 6 p.m. Sunday night, Columbus police officers responded to a scene on Georgesville and Clime Roads, according to our news partner WBNS in Columbus .

Police said they encountered a person believed to be connected to the shots fired at the Amazon facility. West Jefferson Police also confirmed the connection between the two scenes.

Shots were fired just before 6:10 p.m. in Columbus. Several officers fired at the suspect and killed him, Brian Steel, the president of the Fraternal Order of the Police Capital City Lodge #9, told both WBNS and NBC 4 .

During the exchange, an officer was struck. The officer’s vest was hit by a bullet, according to Steel.

Medics transported the officer to a Columbus hospital where he is listed in stable condition.

Ohio BCI has been requested to investigate the shooting.

We will continue to follow this story.

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