Competitor and Global Strategies

4.
1 Competitor (Walmart vs Amazon)
After Walmart has successfully partnered with Google to expand its services to
consumers, now Amazon.com Inc. also announced the completion of the acquisition action
against Whole Foods Market Inc. This situation is increasingly tightened competition
between Walmart and Amazon.com in the e-commerce sector in the United States. As is
known, Amazon.com finally managed to acquire Whole Foods Market Inc. worth US $ 13.7
billion after obtaining permission from US regulators.
The US Federal Trade Commission said it would not proceed with an investigation
into the Amazon acquisition. The reason they found no indication that the corporate action is
a form of unfair competition or reduce competition in the market. Amazon also claimed that
it has been on the right track when acquiring a retailer who sells organic food products.
Because they do not violate any rules in the process of acquisition. Moreover, the Whole
Foods shareholders have approved the action of the corporation. Meanwhile, buying Whole
Foods further strengthens Amazon's business in the US because it is equivalent to
automatically getting Whole Foods wholesale markets wholesale US $ 700 billion.
amazon revenue and profits

by segment, per Quarter I /
2017 (US $ Billion)
market movement of Amazon vs Walmart market (US$ billion)
Walmart Efforts
However, what Amazon does in expanding its expansion across these sectors
is slowly followed by Walmart. In order to shake the dominance of Amazon in the
US, Walmart took Alphabet Inc. to develop a shopping app using sound to be
embedded in the Android operating system. Apikasi it will make the buyer live voice
to order the goods they want.
The application will be integrated in the Alphabet-made platform, Google
Asistant. The platform will be available in the Google Home app that exists on every
phone that uses the Android operating system. Later, the platform will automatically
connect to Walmart's booking server. "We want to expand the market while providing
a new shopping experience to our customers," said Walmart Ecommerce Business
Head Marc Lore.
Previously, a similar application has been developed by Amazon called
Amazon Alexa. The application in 2016 has made the company controlled 72% of the
US e-commerce market in 2016. As for Alphabet itself, cooperation with Walmart
will further encourage new cooperation again with other online retailers to join the
Google Home application. Meanwhile, for consumers, Google has lowered
membership fees to only US $ 10 per month. (Bloomberg / Reuters)
4.2 Walmart Global Strategies
 walmart used multidomestic strategy in Americas resulting in very successful
penetration
 its use of a global strategy with out developing economies of scale have
resulted in failure. e.g germany and korea

 walmart is trying to move toward a transnational strategy to effectively ultilize
and global competencies
 its transnational strategy in UK worked successfully but has found it difficult
to emulate in other country
Strategies for Customers
a. Understanding Customers.
Wal-Mart strives to provide goods to its customers at a cheap price according
to its tagline of “Save Money Live Better” which means saving money, family
can live better. Studies conducted by Goldman Sachs quoted in Fortune magazine,
Wal-Mart became a price leader in various product categories. Wal-Mart is known
for its cheap price and discount.
b. Merchandising Focus.
Walmart is more centered around offering items at low cost and making item
choice. Wal-Bazaar likewise centers around marked stock however with a low
value that is certainly sought after by customers

Reference :
1. http://mba.teipir.gr/files/3_Wal-Mart.pdf
2. http://www.businessinsider.com/walmart-amazon-grocery-competition-heating-up-
2018-3/?IR=T
3. http://www.marketing.co.id/tertinggal-dari-amazon-wal-mart-bangun-kekuatan-
online/
4. https://www.slideshare.net/pradeep_loganathan/globalization-strategy-walmart

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4.

1 Competitor (Walmart vs Amazon)

billion after obtaining permission from US regulators.

Foods further strengthens Amazon's business in the US because it is equivalent to

automatically getting Whole Foods wholesale markets wholesale US $ 700 billion.

amazon revenue and profits

is slowly followed by Walmart. In order to shake the dominance of Amazon in the

to order the goods they want.

The application will be integrated in the Alphabet-made platform, Google

a new shopping experience to our customers," said Walmart Ecommerce Business

Head Marc Lore.

Previously, a similar application has been developed by Amazon called

US e-commerce market in 2016. As for Alphabet itself, cooperation with Walmart

Google Home application. Meanwhile, for consumers, Google has lowered

membership fees to only US $ 10 per month. (Bloomberg / Reuters)

4.2 Walmart Global Strategies

 walmart used multidomestic strategy in Americas resulting in very successful

resulted in failure. e.g germany and korea

and global competencies

 its transnational strategy in UK worked successfully but has found it difficult

to emulate in other country

Strategies for Customers

Wal-Mart strives to provide goods to its customers at a cheap price according

Wal-Mart became a price leader in various product categories. Wal-Mart is known

for its cheap price and discount.

value that is certainly sought after by customers

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