The document compares Amazon and Walmart, focusing on their strategies for competing in the retail market, emphasizing the growing importance of omni-channel presence, technological advancements, data analytics, and collaboration. Both companies are investing heavily to adapt to changing consumer preferences and to expand into each other's territories. Key areas for competitive advantage include enhancing customer experiences, improving supply chain efficiency, and leveraging technology for innovation.

1. Amazon vs Walmart
Faculty
Dr. Rajeev Sharma
Customer Obsession v/s Everyday Low
Prices

2. SDW- Amazon vs Walmart
Contents
 Introduction
 Problem
 Solution
 Omni Channel Presence
 Tech Supremacy
 Data Driven Strategies
 Collaboration
 Summary

3. SDW- Amazon vs Walmart
Introduction
 World’s largest retailer by Revenue
 $611 billion worldwide revenue in 2023
 Operates 10,500 stores in 19 countries &
employs 2.1 million people
 Retail operations include Hypermarkets,
discount department stores, grocery
stores, and Sam’s Club retail warehouse
 Market cap (US) of $424.98 Billion ( In 2nd
place)
 Commitment to “Low Price Leadership”
 World’s largest Online retailer by
Revenue
 $575 billion worldwide revenue in 2023
 Other offers include cloud computing
services, digital streaming platform, e-
commerce fulfillment
 Market cap (US) of $1374 Billion ( In 1st
place)
 Core values include “Customer
Obsession“ “Long term thinking”,
“Eagerness to Invent”, “Operational
excellence”

4. SDW- Amazon vs Walmart
Problem - Collision Course
 Changing Customer Preference has led both companies to foray into each other’s areas of
dominance
 Demographic trends like age, income, lifestyle preferences of consumers shaping the dynamics of
retail Industry
 Omni channel retailing, integrated platforms that seamlessly comprised digital and physical retail
compelled both companies in making huge investments in each other’s domain.
 Every step towards Omni-channel by the two retail giants saw them increasingly confront each other
head on
• Walmart entered e-commerce with a $3 billion acquisition of retail site Jet, but in 2020 refocused
on Walmart.com
• Amazon bought “Whole Foods Market” in 2017 giving an instant brick-and-mortar presence and
continued expansion with Amazon Fresh store.

5. SDW- Amazon vs Walmart
Solution – Omni Channel Presence – “Everywhere Everything All at Once”
 One of the expansion strategy for both is “Omni Channel” along with Organic growth
 A business strategy that allows customers to interact with a brand across multiple digital and
physical channels, such as websites, social media, apps, and physical stores
 62% of customers preferred in-store returns giving retailers with omni-channel presence
advantage
Use Tech to navigate
complex supply chain
problems
Make returns
easier
Seamless
shopping
experience
Increased control
over value-chain
Gain advantage on Unit
economics of e-commerce
Aim at Next level
supply chain
Integrate online
and physical store
presence

6. SDW- Amazon vs Walmart
Solution – Tech Supremacy – Amazon is the leader today, can Walmart overtake?
 Technology is shaping the future of Retail Industry and future of
Shopping
 Amazon is continuously improving user experience using
technology.
 Amazon live shopping
 Walmart is investing a 14 billion dollars in Automation and
technology
 Banking on tech to streamline operations
 Enhance customer experience
 Walmart-Amazon Showdown
 Building up ad businesses
 Major platforms for 3rd party sellers
 Growing membership programs
AI Powered
Shopping
Assistant
Augmented
Reality
Shopping
Virtual Fitting
Rooms
AI & Automation to
fuel Ultrafast
Delivery
Alpha-bot, Drone
Delivery etc.
Personalized offerings to
enhance user experience
Generate new revenue
streams using technology
Smart
Shopping
Carts
Voice
activated
shopping
Enhanced
Payment
Solutions
In-Store Experiences

7. SDW- Amazon vs Walmart
Solution – Data Analytics & Prediction Driven Strategies
 Insights on customer’s preference can help businesses gain competitive advantage
 Access to large amount of data due to omni channel presence & 3rd party sellers in marketplace.
 Use Data Analytics and ML to derive new business strategies that are hidden from traditional
strategy exercise.
Find what
customer really
wants
between the 3 C’s
of E-Commerce
(Convenience,
Cost & Catalogue)
Evaluate if Own
manufacturing is
the next
expansion
strategy for
profitability
Use D&A for new
continuous
customer
segmentation split
by products,
demography and
other parameters
Unearth unknown
factors influencing
customer behavior
patterns for
Dynamic pricing
possibility
Drive adoption
using targeted
campaigns for
subscriptions

8. SDW- Amazon vs Walmart
Solution – Collaboration
 Collaborate with 3rd party sellers on deeper levels for competitive
advantage
 Collaborate with rivals to create entry barrier for new entrants like
Blinkit, Zepto in specific country or location.
 Keep looking for latest inventions or technologies which might
play a role in any step of the process.
Shared delivery &
Fulfillment
network
Unified Digital
Wallet and
Payment System
Collaborative
Sustainability
Initiatives
Cross-Platform
Membership
Benefits
Co-Branded Retail
Experiences
Walmart & Amazon
- Zero carbon
Emissions - 2040

9. SDW- Amazon vs Walmart
Summary
Gaining an edge on the following aspects of the business will give clear competitive
advantage to either of them
1) Omni Channel Presence
a) Solve Retail business problems like Returns, quick delivery etc.
b) Seamless Customer experience
c) Improve on Unit economics of e-commerce
2) Tech Supremacy – Continue to invent, invest onto technology for breakthrough innovations.
a) Customer Delight ( Online & In-store)
b) Multi Revenue streams
c) Supply Chain improvements
3) Data Driven Strategies
a) Dig deep into data, unearth new meanings and inferences of customer behavior
b) Use Data to drive strategies to cater to dynamic needs
c) Evaluate own manufacturing setup options
4) Collaborate
a) Evaluate opportunities to collaborate to make the market Duopoly
b) Gain competitive advantage in APAC and create entry barrier for new entrants

10. SDW- Amazon vs Walmart
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