Group 3 - Amazon vs Walmart sdw- V2.0.pptx

Group 3 - Amazon vs Walmart - V2.0-1.pptx

1. Amazon vs Walmart Submitted by Vindhya Rajendran VX23042 Shrikanth Madhava Rao VX23038 Avinash Gowda VX23010 Shiv Prakash Godara VX23037 Sanjeev Sarin VX23033 Nilesh Trivedi VX23023 Faculty Dr. Rajeev Sharma Customer Obsession v/s Everyday Low Prices

2. SDW- Amazon vs Walmart Contents Introduction Problem Solution Tech Supremacy Omni Channel Presence Data Driven Strategies Collaboration Summary

3. SDW- Amazon vs Walmart Introduction World’s largest retailer by Revenue $611 billion worldwide revenue in 2023 Operates 10,500 stores in 19 countries & employs 2.1 million people Retail operations include Hypermarkets, discount department stores, grocery stores, and Sam’s Club retail warehouse Market cap (US) of $424.98 Billion ( In 2 nd place) Commitment to “Low Price Leadership” World’s largest Online retailer by Revenue $575 billion worldwide revenue in 2023 Other offers include cloud computing services, digital streaming platform, e-commerce fulfillment Market cap (US) of $1374 Billion ( In 1 st place) Core values include “Customer Obsession“ “Long term thinking”, “Eagerness to Invent”, “Operational excellence ”

4. SDW- Amazon vs Walmart Problem - Collision Course Changing Customer Preference has led both companies to foray into each other’s areas of dominance Demographic trends like age, income, lifestyle preferences of consumers shaping the dynamics of retail Industry Omni channel retailing, integrated platforms that seamlessly comprised digital and physical retail compelled both companies in making huge investments in each other’s domain. Every step towards Omni-channel by the two retail giants saw them increasingly confront each other head on Walmart entered e-commerce with a $3 billion acquisition of retail site Jet, but in 2020 refocused on Walmart.com Amazon bought “Whole Foods Market” in 2017 giving an instant brick-and-mortar presence and continued expansion with Amazon Fresh store.

5. SDW- Amazon vs Walmart Solution – Tech Supremacy – Amazon is the leader today, can Walmart overtake? Technology is shaping the future of Retail Industry and future of Shopping Amazon is continuously improving user experience using technology. Amazon live shopping Walmart is investing a 14 billion dollars in Automation and technology Banking on tech to streamline operations Enhance customer experience Walmart-Amazon Showdown Building up ad businesses Major platforms for 3 rd party sellers Growing membership programs AI Powered Shopping Assistant Augmented Reality Shopping Virtual Fitting Rooms AI & Automation to fuel Ultrafast Delivery Alpha-bot, Drone Delivery etc. Personalized offerings to enhance user experience Generate new revenue streams using technology Smart Shopping Carts Voice activated shopping Enhanced Payment Solutions In-Store Experiences

6. SDW- Amazon vs Walmart Solution – Omni Channel Presence – “ Everywhere Everything All at Once” One of the expansion strategy for both is “Omni Channel” along with Organic growth A business strategy that allows customers to interact with a brand across multiple digital and physical channels, such as websites, social media, apps, and physical stores 62% of customers preferred in-store returns giving retailers with omni-channel presence advantage Use Tech to navigate complex supply chain problems Make returns easier Seamless shopping experience Increased control over value-chain Gain advantage on Unit economics of e-commerce Aim at Next level supply chain Integrate online and physical store presence

7. SDW- Amazon vs Walmart Solution – Data Analytics & Prediction Driven Strategies Insights on customer’s preference can help businesses gain competitive advantage Access to large amount of data due to omni channel presence & 3 rd party sellers in marketplace. Use Data Analytics and ML to derive new business strategies that are hidden from traditional strategy exercise. Find what customer really wants between the 3 C’s of E-Commerce (Convenience, Cost & Catalogue) Evaluate if Own manufacturing is the next expansion strategy for profitability Use D&A for new continuous customer segmentation split by products, demography and other parameters Unearth unknown factors influencing customer behavior patterns for Dynamic pricing possibility Drive adoption using targeted campaigns for subscriptions

8. SDW- Amazon vs Walmart Solution – Collaboration Collaborate with 3 rd party sellers on deeper levels for competitive advantage Collaborate with rivals to create entry barrier for new entrants like Blinkit , Zepto in specific country or location. Keep looking for latest inventions or technologies which might play a role in any step of the process. Shared delivery & Fulfillment network Unified Digital Wallet and Payment System Collaborative Sustainability Initiatives Cross-Platform Membership Benefits Co-Branded Retail Experiences Walmart & Amazon - Zero carbon Emissions - 2040

9. SDW- Amazon vs Walmart Summary Gaining an edge on the following aspects of the business will give clear competitive advantage to either of them Tech Supremacy – Continue to invent, invest onto technology for breakthrough innovations. Customer Delight ( Online & In-store) Multi Revenue streams Supply Chain improvements Omni Channel Presence Solve Retail business problems like Returns, quick delivery etc. Seamless Customer experience Improve on Unit economics of e-commerce Data Driven Strategies Dig deep into data, unearth new meanings and inferences of customer behavior Use Data to drive strategies to cater to dynamic needs Evaluate own manufacturing setup options Collaborate Evaluate opportunities to collaborate to make the market Duopoly Gain competitive advantage in APAC and create entry barrier for new entrants

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