Online Business and Walmart Case Study

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Strategic Recommendations for Walmart.com to be ahead of Amazon.com

Walmart is a U.S. multinational retail company operating a chain of hypermarket, grocery stores, and discounted stores. The company operates under different brands using Walmart for the United States and Canadian brand, Best Price in India, ASDA in the UK, and Seiyu in Japan. By June 2016, Walmart is the largest retail store by revenue with revenue of $482.1 billion and net income of $15.08 billion. Despite the success of Walmart over the years, the company has still recorded poor performances in e-commerce compared to Amazon.com. While Walmart has launched the online business more than 15 years ago, the company is still struggling in the online business. The revenue realized from the online sales is still insignificant compared with the revenue realized from the in- stores.

Objective of this paper is to provide the recommendations for Walmart Executive to improve their performances in the online sales.

Recommendations to boost Sales in the Online Stores

In the United States, Walmart realizes only 7% of their revenue from online sales. (Mcintyre, 2016). Although Walmart is a price leader for the in-store retail items, however, the Walmart.com has still not offered low prices for the items sold in the online stores.

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Comparatively, Amazon.com s offers lower prices for their items in the online stores compared to the prices offered by Walmart.com. In the competitive business environment, price and product's quality are the major factors that pull customers towards products. Thus, Walmart.com should emulate the Amazon.com and offer lower prices for their items. At the end 2015 fiscal year, Walmart revenue was $485.65 Billion, however, declined to $482.13 Billion at the end of 2016 fiscal. Similarly, the net profits declined from $16.81 Billion in 2015 to $15.08 billion at the end of 2016 fiscal year. Thus, the Walmart needs to make a strategic move to take advantages of e-commerce to boost its sales.

Compared to Amazon that offers free shipping for virtually all products shipped to the U.S. customers, Walmart.com has just started an offering a free shipping for their online customers because the company still relies on the brick and mortar business for their revenue. Thus, many online customers have not yet aware that the Walmart.com offers a free shipping. Thus, the company needs to offer a comprehensive advert to educate their customers about the free shipping to attract more customers towards their online….....

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