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Case Details |
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Case Code: MKTG371
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Case Length: 16 Pages |
Period: 2017 |
Pub Date: 2018 |
Teaching Note: Available |
Price:Rs.500 |
Organization : Wal-Mart Stores Inc. (Walmart) |
Industry : Retail
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Countries : US |
Themes: - |
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Amazon vs. Wal-Mart: The Retail Price Wars |
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<<Previous Page |
INTRODUCTION |
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Wal-Mart Stores, Inc. (Wal-Mart), a US-based multinational retailing corporation, had framed several strategies in its price war with American e-commerce and cloud computing company Amazon.com (Amazon) to not only retain its position as the top retailer in the US but also to become the market leader in the online retail business. In one such move against Amazon, Wal-Mart announced that starting April 19, 2017, it would offer discounts on 10,000 online-only products on Walmart.com, provided the shopper opted to pick up the ordered items from a Wal-Mart retail store rather than having the items shipped to his/her address. Wal-Mart also promised that the discounts would be extended to more than 1 million items by the end of June 2017. However, this discount was not applicable to the items available in Wal-Mart’s physical stores and on Wal-Mart’s third-party marketplace. This marked the extension of Wal-Mart’s aggressive pricing to other categories such as baby gear, electronics, and home goods. The discounts would vary with the specific item, weight of the product, and the product category, along with how much Wal-Mart would save on shipping costs. “One of the things I love most about Wal-Mart’s heritage is the maniacal focus on our customers and finding ways to offer them low prices – every day. We do this by creating efficiencies in our business so we can share the savings with them. And, in the online world, we can use our physical stores and supply chain to do some pretty unique things for our digital customers,” of Marc Lore (Lore), President and CEO of Wal-Mart US Ecommerce..
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