Walmart Case Assignment

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Walmart Case Assignment

Q1: In Porter's model, the threat from new entrants is associated with the influence of new
competitors on the existing competitors who compete in the same industry. For Walmart this is
most noticeable in the electronic commerce sector. The e-commerce venture of Walmart makes it
the key player in physical retailing, but this foray also pits it against new international rivals like
Amazon, which started its operations as an online bookstore and later diversified its e-commerce
platform to become one of the biggest threats to Walmart's online dominance. This case describes
how Walmart spent a lot of money trying to expand its online operations (which later resulted in
the loss of a monumental amount of $2 billion in 2019). Such financial pressure is evidence of
the breadth of competition and the disruption caused by the online focused startup to the retail
landscape.
Q2: Walmart is known for its "low-cost leadership", but in this case, it is also called around
product differentiation. The identified example involves supermarkets carrying a large selection
of items and services. To illustrate, shoppers may purchase items such as food, clothing,
electronics, as well as medical prescription, money transfer and eyeglasses fitting, without
having to visit different shops. Staying open 24/7 and allowing them to be community gathering
places will be other different features of Walmart not offered by its competitors who may carry
goods with similar qualities but not the same level of convenience or depth of services. In
addition, supercenters will act as springboards for pickup and same-day delivery, supporting their
e-commerce strategy, aiming to create a differentiated and seamless online and brick-and-mortar
shopping experience.
Q3:
 Data-Driven Advertising: Walmart with information on over one hundred million
customers is building the brands of Tide and kellogg's through targeted advertisement.
Data on shoppers' preferences allows Walmart to offer anonymized insights to suppliers
which, in turn, helps them improve targeting when they advertise; another good example
of the benefits that come from the use of big data analytics.
 Edge Computing: The idea of building an edge computing centers is a smart IT move.
Through processing the data in a location where it is generated, Walmart can
consequently regulate the operation of autonomous vehicles and related systems which
require quick processing of huge volumes of data. This mention points to Walmart's goal
of using edge computing for a more efficient operation and may, eventually, provide
clients with cloud services in the vicinity.
 Operational Efficiency: The supercenter facilities are connected with information systems
to enable services like health clinics, financial services, and community spaces. These
set-ups eliminate the need for appointment scheduling, prescription management,
financial transactions, among others. Additionally they enable the supply chain behind
same-day pick-up and drop-off services, which are as much critical for a holistic Omni
channel shopping experience as the other components.

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