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Amason

In: Other Topics

Submitted By singerout
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1. What concepts in the chapter are illustrated in this case?

The concepts illustrated in this case are value chain model and competitive forces model.

Business value chain model.

-Views firm as series of activities that add value to products or services.
-Highlights activities where competitive strategies can best be applied.
-At each stage, determine how information systems can improve operational efficiency and improve customer and supplier intimacy.
-Utilize benchmarking, industry best practices.

Michael Porter’s competitive forces model

-Provides general view of firm, its competitors and environment.
-Five competitive forces shape fate of firm -Traditional competitors -New Market Entrants -Substitute products and services -Customers -Suppliers

2. Analyze Amazon and Walmart.com using the value chain and competitive forces models.
 The competitive forces models
 Traditional competitor: Amazon vs Wal-Mart competition in marketplace
 Low-cost leader: Amazon and Wal-Mart provide lowest price to customer and keep competing in lowest price
 New market entrants: both are the biggest company in E-commerce
 Substitute Products and Services: the competition in discount of two company is prominent
 Customers: no mention
 Suppliers: no mention
 The value chain model:
 Walmart: can lose money selling a hot product at extremely low margins and expect to make money on the strength of the large quantities of other items it sells. It also has a legendary continuous inventory replenishment system that starts restocking merchandise as soon as an item reaches the checkout counter. Wal-Mart’s efficiency, flexibility, and ability to fine-tune its inventory to carry exactly what customers want have been enduring sources of competitive

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