Question: To adequately compete with Amazon and ensure that they do not take up too much market share, you have been hired as an external consultant
To adequately compete with Amazon and ensure that they do not take up too much market share, you have been hired as an external consultant by Walmart to design a strategy on how they can compete with Amazon appropriately. Provided below are several internal and external issues that Walmart are grappling with that need to be solved. These are outlined below:
Worried shareholders: Shareholders are worried about Amazons rise as they see this as a threat to Walmarts share price
Poor online customer service: Walmart customers have been complaining that when they try and order their groceries online website and mobile they cant sufficiently ask questions and engage with staff members for advice andor enquiries
Social media ineptitude: Walmart are worried that their social media interactions are insufficient and unengaging and that consumers do not have any desire to interact with the brand
Corporate staff insufficiently trained: The company has identified that not all their staff members are sure of how the online grocery ordering system works. This also extends to payment to suppliers
Price: Walmart is unable to compete with Amazon on prices of particular products
Website not so userfriendly: Amazons online ordering system is much more userfriendly than Walmart
Distribution: Walmart has more effective distribution channels than Amazon already setup However, Walmart's managers feel that Amazon is starting to make strong moves in this space. Not only that, but costs for the different buying channels for consumers is higher than simply operating online
Supplier relationships: Some suppliers are willing to offer Amazon better terms than terms offered to Walmart
Brand reputation: Walmart has noticed that their reputation is decreasing, and Amazons is increasing its market share
Poor consumer loyalty: Consumer loyalty is difficult to establish and while Walmart has a large market share, consumers dont seem to be particularly loyal
As highlighted above, Walmart has a number of worrying issues they need to deal with and that they see as a threat from Amazon. To assist Walmart, you need to select issues and develop innovative solutions to dealing with these issues.
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