Page 8 - [STUDY CASE_GROCERY WARS] Report
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Value chain
To put it in context of the Grocery War case study, the value chain of
Amazon and Walmart will be:
Amazon
Amazon provides Amazon Prime Membership, Amazon Fresh,
Prime Pantry and Prime Now to customers. More than half of
American households with incomes over $100,000 are already
Prime subscribers, and they spend more than $1,000 a year using
this service. Amazon Prime could become the cable bundle of the
future—an annual subscription to a group of diverse services that
give Amazon a dependable revenue stream and a growing, loyal
customer base.
Amazon offers low prices on many different categories of items
and quick delivery of products.
When acquiring Whole Foods, Amazon uses Whole Foods stores as
locations for customers to pick up and return their orders
conveniently.
Walmart
Walmart is the leading US grocery retailer, focusing on in-store
services. Grocery accounts for 56 percent of Walmart’s total sales,
and grocery shopping is a major driver of store traffic and customer
loyalty.
Walmart was hoping to develop its business and compete with
Amazon by expanding its online grocery.
Walmart's deliveries are handled by Uber Technologies and other
providers.
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