1、A vs. Wal-Mart,E-Commerce Presentation Team,Lets Get Ready to Rumble!,Eric Head Robert Distefano Dom Gaudin,John Lin Darin Bodin Carmen Saleh,CEO Jeffrey Bezos,Company Statistics:,The Amazon Team,Expertise: Bits & Bytes,Market Cap: $16 Billion Stock Price: $100 1/16 Net Profits: $-138 Million (2Q 99
2、) Headquarters: Seattle, Washington,CEO David Glass,Company Statistics:,The Wal-Mart Team,Expertise: Bricks & Mortar,Market Cap: $188 Billion Stock Price: $42 1/4 Net Profit: $4.43 Billion Headquarters: Bentonville, AR,HISTORIES,History of A July 1994: Incorporated Focus: software development Sold b
3、ooks in his garage with ten employees July 1995: Virtual doors open September 1997: Introduced personalized recommendations and one-click purchase June 1999: Obtained 10 million registered customers,History of A (continued) 2nd quarter 1999 Revenues $314 billion 1st quarter 1998 Revenues $87.4 milli
4、on Projected sales for 1999: over $1 billion $138 million loss in 2nd quarter 1999 Has not made a profit since company started 10.7 million registered customers 8.4 million in 1st quarter 1999 3.14 million in 1st quarter 1998,History of A (continued) Operates two international sites: www.amazon.co.u
5、k www.amazon.de Other sites operated or owned include: G D H P IMDB.com P L A,History of A (continued),Mission: To be the worlds most consumer-centric company where people can find and discover anything that they want to buy online.,1962 Company founded in Rogers, Arkansas,1969 Wal-Mart Incorporated
6、,1970 Wal-Mart Goes Public,1979 First Billion Dollar Sales Year,1993 First Billion Dollar Sales Week!,History of Wal-Mart,1988 David Glass named CEO,1991 Established International Presence in Mexico,1995 Established Presence in South America,1996 Entered Asia,History of Wal-Mart (continued),1997 Lar
7、gest national employer with 680,000 associatesand first $100 Billion sales year!,History of Wal-Mart (continued) Originally launched Website in 1996 Owns six registered web addresses: w- . Has established alliances with: Fingerhut Books-A-Million Announced plans for an Internet megasite in 1999!,ST
8、RENGTHS,Amazons Strengths,E-commerce is its core mission and environment A has enjoyed a first mover advantage Amazon has: a strong brand image vast customer database exceptional customer trust,Amazons Strengths,Amazon provides: 100% guaranteed secured credit card transactions Personalized product r
9、ecommendations Hassle-free shopping through 1-click and 1-bid technology Risk-free return policy Amazons IT and Logistics executives were formerly employed at Wal-Mart,Wal-Marts StrengthsA leader in almost every retail category $137.6 billion in sales last year $4.43 billion in net earnings Excellen
10、t vendor alliances,Wal-Marts Strengths (continued)-History and image as a discount retailer -State of the art supply chain network -Culture of customer service -More than 3700 stores worldwide can be used in a “hybrid strategy”,WEAKNESSES,Amazons Weaknesses,Amazon has yet to achieve a profit Custome
11、rs cannot physically touch the product prior to purchasing Lack of social interaction before purchasing Risk-averse consumers may find buying on-line intimidating Not every person has access to the Internet,Wal-Marts Weaknesses Brand image not attractive to “upscale consumers” High fixed costs First
12、 Web launch was not very successful Will a mature and successful firm be willing to make the necessary commitment?!,OPPORTUNITIES,Amazons Opportunities,Expand internationally Actively pursue online auctions Evolution of mass market from merchant-centric to consumer-centric,Amazons Opportunities (con
13、tinued),Create “segment fluidity” Segments within segments Typical segments Low cost/value/high quality Embedded segments Customer service Product uniqueness Social experience Quick and easy purchase Personalized recommendations Catch customers with high attention scarcity,Wal-Marts OpportunitiesExp
14、loit vendor relationships Establish strategic alliances Explore hybrid models to enhance customer service Spin off wal- as a separate IPO,Wal-Marts Opportunities (continued)Market aggressively using traditional and online media Explore hybrid models to enhance customer service Do not worry about can
15、nibalization. Use the Internet to expand customer base,THREATS,Amazons Threats,The future of E-Commerce Amazon may bite off more than it can chew(over-diversification) Other retailers are quickly creating an on-line presence Amazon must effectively manage its growth to minimize growing pains,Wal-Mar
16、ts ThreatsWal-Mart is NOT the first mover. The “wait and see” strategy could be problematic Other retailers are getting into the game (Sears, Target, Kmart, etc.) Establishing an online brand will cost.the longer the wait, the greater the cost!,CONCLUSION,Prediction: NO ONE WINNER!The Hybrid ModelSegment “Fluidity” - Attention ScarcityBits & Bytes vs. Bricks & Mortar Analysis,Questions?,
