Walmart’s e-commerce has managed to stay up in the market despite the challenges it has faced over the years. Walmart has been challenged by Amazon who have voice powered innovations like Alexa and acquisitions such as whole goods. Amazon is able to appeal to the demographics of its customer through weaves and bobs with a take it to the city strategy. This paper discusses two strategies discussed by Mark Lore that stimulate their growth in E-commerce.
Making Targeted, tuck in acquisitions is one of the strategies Mark Lore shares with Andrew Nusca in his interview. This strategy has contributed to the company’s aggressive shopping spree that includes shoe buy, Moosejaw, Bonobos and Modcloth. It focuses on speeding up growth on the existing site since it is more of an asset purchase. This strategy helps because it does not focus on return on investment on the site that Walmart acquired, but rather how it can benefit both Walmart and Jet. Walmart focuses on the future by hiring the best leaders to come in and build their startups. They also focus on empowering their employees by providing a comfortable environment for them to work and rewarding them to risks made (Nusca, 2017).
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The second strategy is rethinking the organization’s chart. Lore describes to Nasca the changes he had to make immediately he joined Wal-Mart. Both product customers experienced used to report to operations. Lore made customer care and customer experience report directly to him. This helped the customers and elevated the customers within the organization. They have also improved their infrastructure by providing options to their clients. Their delivery methods which are fast and efficient are a good example. They use their stores as infrastructures for delivery. That way they are able to reach their customers that are low income earners (Nusca, 2017).
Conclusion
These two strategies have continued to help Walmart accelerate its strategy. According to Lore, he insists that Walmart focuses on what their products can do now and in future in order to accelerate the success of the company.
Reference
Nusca, A.(2017). 5 Moves Walmart Is Making to Compete With Amazon and Target. September 27, 2017. Retrieved from: http://fortune.com/2017/09/27/5-moves-walmart-is-making-to- compete-with-amazon-and-target/
