The assignment for this week is to answer the four questions that are listed in the MIS Case # 1. This case can be found in your text on pages 110 – 112. The case deals with the challenges facing Walmart and Amazon as they compete in the changing world of retail.
Your response should be at least 3 pages in length and follow the format provided here. This assignment should be submitted via the Canvas attachment function. Simply click on Submit Assignment button in the right corner and attach your completed solution. I will return your paper with my comments and your grade in your Gradebook. Be as thorough as possible. Be mindful that I do subtract points for grammar, spelling and format errors. The assignment is worth 120 points in the course.
< Back Case Response Format (1).docx Last Name - 1 Student Name BAM 465 Date Submitted MIS Case #(1 or 2) Question #: Restate the question as given in the assignment and bold the question text. Please single space the question. For your answer to each question please follow these formatting rules. The margins for the entire paper should be 1 inch on all sides. The font to use should be Times New Roman (12 point). The first sentence of a new paragraph should be indented 72 inch. Double space all typing. Also use a header that includes your last name and the page number. Answer all of the questions asked. The length of the paper should be at least 3 pages. Adequately proofread the paper as any type of spelling, punctuation or grammar error will have one point deducted for each occurrence. I am looking for your analysis to the questions. Provide sufficient detail/examples to back up your thoughts. The assignment is worth 100 points. 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(2005 or later) as your main guide to good writing. 35 OOO Dashboard Calendar To Do Notifications Inbox 9:30 A chegg.com Answer the case study questions please and thank you BUSINESS PROBLEM-SOLVING CASE Walmart Versus Amazon and the Future of Retail Walmart is the world's largest and most success For online shopping, Amazon has some clear-cut ful retailer, with more than 5485 billion in 2016 advantages. Amazon has created a recognizable sales and nearly 11,700 stores worldwide, including and highly successful brand in online retailing. The more than 4,600 in the United States, Walmart has company has developed extensive warehousing facili 2.3 million employees and ranks number one on the ties and an extremely efficient distribution network Fortune 500 list of companies. Walmart had such specifically designed for web shopping. Its premium a large and powerful selling machine that it really shipping service, Amazon Prime, provides fast "free" didn't have any serious competitors until now, two-day shipping at an affordable fixed annual sub Today Walmart's greatest threat is Amazon.com, scription price ($99 per year), often considered to be a often called the "Walmart of the Web." Amazon sells weak point for online retailers. According to the Wall not only books but just about everything else people Street Journal, Amazon's shipping costs are lower than want to buy DVDs, video and music streaming Walmart's, ranging from S3 to 54 per package, while downloads, software, video games, electronics, Walmart's online shipping can run $5 to 57 per parcel apparel, furniture, food, toys, and jewelry. The com- Shipping costs can make a big difference for a store like pany also produces consumer electronics -notably Walmart where popular purchases tend to be low-cost the Amazon Kindle e-book reader, Fire tablet, Echo items like S10 packs of underwear. It makes no sense and Tap speakers, and Fire TV streaming media for Walmart to create a duplicate supply chain for player. No other online retailer can match Amazon's e-commerce breadth of selection, low prices, and fast, reliable However, Walmart is no pushover. It is an even larger shipping. For many years, Amazon has been the and more recognizable retail brand than Amazon. world's largest e-commerce retailer with the world's Consumers associate Walmart with the lowest price, largest and most powerful online selling machine. which Walmart has the flexibility to offer on any given Moreover, Amazon has changed the habits and item because of its size. The company can lose money expectations of consumers in ways to which Walmart selling a hot product at extremely low margins and and other retailers must adapt. According to Brian expect to make money on the strength of the large Yarbrough, a retail analyst at Edward Jones in quantities of other items it sells. Walmart also has a St. Louis, Amazon and online retailing is probably significant physical presence, and its stores provide the biggest disrupter of retail since Walmart itself the instant gratification of shopping, buying an item, Walmart was founded as a traditional, offline, physi- and taking it home immediately as opposed to waiting cal store in 1962, and that's still what it does best. But when ordering from Amazon. Seventy percent of the it is being forced to compete in e-commerce as well. U.S. population is within five miles of a Walmart store, Eight years ago, only one-fourth of all Walmart cus- according to company management. tomers shopped at Amazon.com, according to data Walmart has steadily increased its investment in from researcher Kantar Retail. Today, however, half its online business, spending between $1.2 billion and of Walmart customers say they've shopped at both $1.5 billion annually in 2015 and the next few years retailers. Online competition and the profits to be on e-commerce. This includes fulfillment centers and reaped from e-commerce have become too important technology and purchases such as $3 billion for Jet.com to ignore. to secure expertise for delivering the lowest-cost basket Walmart's traditional customers who are pri- of goods online. Walmart.com is now the second- marily bargain hunters making less than $50,000 most visited e-commerce site in the United States with per year-are becoming more comfortable using 88 million unique visitors per month. Walmart has technology. More affluent customers who started constructed one of the world's largest private cloud shopping at Walmart during the recession are return- computing centers, which provides the computing ing to Amazon as their finances improve. Amazon horsepower for Walmart to increase the number of has started stocking merchandise categories that items available for sale on Walmart.com from 1 million Walmart traditionally sold, such as vacuum bags, three years ago to more than 50 million today. In the diapers, and apparel, and its revenue is growing much spring of 2015 the company opened four new fulfill- faster than Walmart's. In 2016, Amazon had sales of ment centers around the country, each of which is more nearly S136 billion than 1 million square feet. To further counter Amazon. 110 with information Systems Walmart introduced its own free two-day shipping pro- phones for home delivery, through in-store pickup, or gram for orders totaling more than 35. New technology will also give Walmart more exper- by wandering down the aisles of a Walmart superstore. tise in improving the product recommendations for Walmart is aiming to be the world's biggest omnichan- web visitors to Walmart.com, using smartphones as nel retailer a marketing channel, and personalizing the shopping Amazon is working on expanding its selection of experience. Walmart has been steadily adding new goods to be as exhaustive as Walmart's Amazon has allowed third-party sellers to sell goods through its applications to its mobile and online shopping channels website for a number of years, and it has dramatically and is expanding its integration with social networks such as Pinterest 2009 purchase of online shoe shopping site Zappos.com More than half of Walmart customers own smart- phones, Walmart has designed its mobile app to maxi- to give the company an edge in footwear. Amazon has been building its grocery offerings, with Amazon mize Walmart's advantage over Amazon: its physical Prime, Prime Now, Prime Pantry, and Amazon Fresh locations. About 140 million people visit a Walmart offering delivery times as short as an hour in some store each week. The app's Walmart Pay feature enables users to quickly, easily and securely pay with It looks like Amazon is trying to innovate in vial their smartphones in all Walmart store cases This problem has been solved! See the answer Walmart's technol- 112 Part I: Information Systems in the Digital Age and the cost of these centers as a portion of Amazon's operations is decreasing. Amazon is building up its own delivery operation to compete with UPS, FedEx, and the U.S. Postal Service by offering better delivery those of other retailers. Both Amazon and Walmart are experimenting with drones to accelerate fulfillment and delivery. But Walmart has thousands of stores, one in almost every neighborhood, which Amazon won't The winner of this epic struggle will be the company ever be able to replicate. that leverages its advantage better. ogy initiative looks promising, but it still has work to do before its local stores are anything more than local stores. Can Walmart successfully move to an Walmart's management believes the company's advan- and lower costs for both its own customers and possibly Instead, CEO Doug McMillon is crafting a strategy designed to replicate Amazon's business model. that gives consumers the best of both worlds what some real interaction with tage is that it is not a pure-play e-commerce retailer is called an omnichannel approach to retailing, orously through the web and also in its physical stores. ers want som retaining its hallmark everyday low prices and wide product assortment in both channels and using its large network of stores as distribution points Walmart will closely integrate online shopping and fulfillment with er it's ordering on their mobile its physical stores so that customers can shop how- and that cust ever they want, whether i omnichannel strategy? Can Amazon's business model work for physical retail store sales? Which giant will dominate future retailing? Sources: Rachel Abrams, "Walmart, with Amazon in Its Cross Hairs, Posts E-Commerce Gains," New York Times, May 18, 2017; William White, "Walmart Shipping Pass to Be Replaced by Free Two-Day Shipping." Investor Place, January 31, 2017; Nick Wingfield, "Amazon's Ambitions Unboxed: Stores for Furniture, Appliances and More," New York Times, March 25, 2017, and "Amazon's Living Lab: Reimagining Retail on Seattle Streets," New York Times, February 12, 2017; Tim Denman, "Walmart's Plan for Worldwide E-Commerce Domination," Info Systems News, November 21, 2016; Greg Bensinger and Laura Stevens, "Amazon's Newest Ambition: Competing Directly with UPS and FedEx," Wall Street Journal, September 27, 2016; Rachel Abrams, "Walmart Outperforms Estimates, but Online Retail Lags." New York Times, May 19, 2016; Nathan Olivarez-Giles, "Amazon's Alexa Now Lets You Order Tens of Millions of Products with Your Voice," Wall Street Journal, July 1, 2016; Farhad Manjoo, "How Ama- zon's Long Game Yielded a Retail Juggernaut," New York Times, November 19, 2015; Brian O'Keefe, "The Man Who's Reinventing Walmart," Fortune, June 4, 2015; and Nathan Layne, "Wal-Mart Eyes Amazon in Potentially Costly E-commerce Battle," Reuters, May 20, 2015. chegg.com This problem has been solved! See the answer CASE STUDY QUESTIONS 3-13 Analyze Walmart and Amazon.com using the competitive forces and value chain models. 3-14 Compare Walmart and Amazon's business models and business strategies. 3-15 What role does information technology play in each of these businesses? How is it helping them refine their business strategies? 3-16 Which company will dominate retailing? Explain your answer. customers 9:32 MyLab MIS 9:30 :)) chegg.com nearly S136 billion than milion square feet. 10 lurther counter AS 110 e with information Systems 2009 Walmart introduced its own free two-day shipping pro- phones for home delivery, through in-store pickup, or gram for orders totaling more than New technology will also give Walmart more exper- 535 tise in improving the product recommendations for by wandering down the aisles of a Walmart superstore. web visitors to Walmart.com, using smartphones as Walmart is aiming to be the world's biggest omnichan- nel retailer. a marketing channel, and personalizing the shopping experience. Walmart has been steadily adding new nazon is working on expanding its selection of goods to be as exhaustive as Walmart's Amazon has allowed third- and is expanding its integration with social networks applications to its mobile and online shopping channels website for party sellers to sell goods through its such as Pinterest expanded for a number of years, and it has dramatically More than half of Walmart customers own smart- product selection via acquisitions such as its purchase of online shoe shopping site Zappos.com phones, Walmart has designed its mobile app to maxi to give the company an edge in footwear. Amazon mize Walmart's advantage over Amazon: has been building its grocery offerings, with Amazon its locations. About 140 million people visit a Walmart physical Prime, Prime Now, Prime Pantry, and Amazon Fresh store each week. The app's Walmart Pay feature offering delivery times as short as an hour in some enables users to quickly, easily and securely pay with cases their smartphones in all Walmart stores. Users link a It looks like Amazon is trying to innovate in physical credit card or bank account to the app. At checkout, retail store sales as well as online. Amazon has opened they can just scan the phone to pay rather than pulling retail bookstores in Seattle, Chicago, San Diego, and other U.S. locations featuring Amazon electronic out their wallets. The app can also store shopping lists, devices as well as books. It is thinking about moving save wish lists, and arrange online orders. About 22 million people now use the app as they shop. into the grocery business as well as retail stores for The Walmart website uses software to monitor prices that lend themselves less easily to online purchasing furniture and appliances. These are retail experiences at competing retailers in real time and lower its online because customers like to see and feel these types of prices if necessary. The company is also doubling goods in person. Amazon set up a physical grocery inventory sold from third-party retailers in its online store in downtown Seattle called Amazon Go that is marketplace and tracking patterns in search and social designed around an app that is able to place the items media data to help it select more trendy products. This customers buy in a digital shopping cart so they can strikes directly at Amazon's third-party marketplace, leave the store without waiting in a checkout line. The which accounts for a significant revenue stream for system automatically charges the credit card linked to Amazon. Additionally, Walmart is expanding its online the customer's Amazon account and even knows when offerings to include upscale items like $146 Nike sun- that person puts something back. glasses and wine refrigerators costing more than $2,500 Amazon continues to build more fulfillment centers to attract customers who never set foot in a Walmart closer to urban centers and expand its same-day deliv- store. A new Product Content Collection System will ery services, and it has a supply chain optimized for facilitate vendors sending their product catalogs to online commerce that Walmart just can't match. It now has more than 100 warehouses from which to pack- Walmart, and the product information will then be age and ship goods. Warehouses speed up Amazon's available online Walmart's commitment to e-commerce is not shipping, encouraging users to shop more at Amazon, and the cost of these centers as a portion of Amazon's designed to replicate Amazon's business model. Instead, CEO Doug McMillon is crafting a strategy operations is decreasing. Amazon is building up its own delivery operation to compete with UPS, FedEx, that gives consumers the best of both worlds what and the U.S. Postal Service by offering better delivery is called an omnichannel approach to retailing. and lower costs for both its own customers and possibly Walmart's management believes the company's advan- those of other retailers. Both Amazon and Walmart tage is that it is not a pure-play e-commerce retailer are experimenting with drones to accelerate fulfillment and that customers want some real interaction with and delivery. But Walmart has thousands of stores, one physical stores as well as digital. Walmart will sell vig- in almost every neighborhood, which Amazon won't orously through the web and also in its physical stores, ever be able to replicate. The winner of this epic struggle will be the company that leverages its advantage better. Walmart's technol- ogy initiative looks promising, but it still has work to do before its local stores are anything more than local stores. Can Walmart successfully move to an retaining its hallmark everyday low prices and wide product assortment in both channels and using its large network of stores as distribution points, Walmart will closely integrate online shopping and fulfillment with its physical stores so that customers can shop how- ever they want, whether it's ordering on their mobile 112 models and business stra 3-14 Compare Walmart and A competitive forces and va 3-13 Analyze Walmart and A CASE STUDY QUESTIONS Streets," New York Times, February 12, 201 March 25, 2017, and "Amazon's Living Lab Unboxed: Stores for Furniture, Appliances Investor Place, January 31, 2017; Nick Wing White, "Walmart Shipping Pass to Be Repla Posts E-Commerce Gains," New York Tim Sources: Rachel Abrams, "Walmart, with dominate future retailing? work for physical retail store sa omnichannel strategy? Can An Myla This problem has been solved! See the answer Purchase answer to see full attachment