MIS535 Whos the Worlds top Retailer


MIS535 Whos the Worlds top Retailer
Has technology packaging and accessibility reduced or eliminated the traditional…

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MIS535 Whos the Worlds top Retailer

MIS535 Whos the Worlds top Retailer

Discussions Week 2 All Students Posts – 97 Pages 

Retailing giants!

Read the case study at the end of Chapter 3 of your text: Who’s The World’s Top Retailer? Walmart and Amazon Duke It Out (Laudon, 2015, pp.116-118).

To start, analyze Walmart.com and Amazon.com using the competitive forces and value chain models.  (NOTE: We’ll examine both of these tools in later subthreads (B and C). 

Porter ?

What is Porter’s competitive forces model (Laudon, 2015, pp.94-96)?  Select ONE component of the model and discuss it.  How does technology impact that component of the model?  Identify your selection in the post subject line.

What types of purchases – major capital expenditure or simply supplying your household inventory? Has technology packaging and accessibility reduced or eliminated the traditional ‘economies of scale’ argument of the large, established industry participants?  For example, Tesla Motors or General Motors?

OR a regional, mid-sized retailer or restaurant compared to large, national or international chains?

Competitive forces model (AMAZON):

– Existing competitors: Brick-and-mortar stores, as well as existing online retailers will continue to put pressure on Amazon. Competitor rivalry will be even more intense.

– New market entrants: eBay, Yahoo!, and Google are all attempting to take market space from Amazon. The Internet makes it easier for competitors to enter the market and it offers them very low barriers to entry. Competitive rivalry has become much more intense.

– Substitute products and services: Products and services being offered by Amazon can be easily duplicated and offered by competitors. This makes it easy for rivals to compete.

– Customers: Amazon customers have a lot of power in that they can easily switch to competitors. Amazon and its competitors all operate in a transparent marketplace where there is little product differentiation. Customers can easily find the lowest-cost provider on the Web.

– Suppliers: Amazon’s suppliers can have a significant impact on profits. This becomes even more crucial as more companies enter the online retail marketing. Amazon’s suppliers may exercise greater force over Amazon as they are in a position to enter lucrative deals with other online retail competitors such as eBay and Yahoo!

AMAZON report card

How does it provide value to its customers?   Do you think Amazon can continue to be successful?

To summarize Amazon’s experience, they continuously seek new and innovative ways to expand and build upon its product offerings. They have been extremely innovative in their business strategy and have invested heavily in information systems.  They are a strong contender to provide business cloud computing services.

Amazon provides value to its retail customers by making it an easy place to shop. The one-click experience is pleasurable, and customers continue to realize significant cost savings over traditional shopping. Over the years, Amazon has been very successful in building a very large and loyal customer base that are willing to pay a premium for access.

The Kindle has been, by most measures successful.  It is changing the book market.  In 2011 they introduced an Amazon ‘tablet’, the Kindle Fire.  More recently, additional, aggressively priced models of the Kindle have been introduced.  To me, these were a ‘risky’ move, but they have not asked for my advice and I have not studied their recent financials.

Amazon released a smartphone (struggling) and TV service (Fire stick) to the market – were those wise decisions?

Their most recent product is the Echo – here’s a look at how they portray it – over 3 million sold!

How would Porter evaluate Amazon TODAY?

Use this week’s material in your analysis e.g. use Porter competitive forces model, the value chain, or another strategic framework.  What value does IT provide your organization?…