Walmart.Com Case Study

CASE STUDY

WAL-MART.COM

1. What is the impact of Wal-Mart.com on customer-borne transaction costs?

The creation of Wal-Mart.com is providing customers and the company with a new distribution channel: online shopping. While shopping online, customers are saving time and money on transportation, saving time (which for most of them signifies money)

This results in lower costs so we can say that the creation of Wal-Mart.com will lower the customer-borne transaction costs.

2. Do you think that Wal-Mart.com is likely to create additional value?

Wal-Mart.com is likely to create additional value, they could offer the possibility for the customer to pick up its ordered products online, or make an online reservation and then go and pay for the product in any Wal-Mart store while their products is being delivered to their homes. This would result in a multi-level selling for Wal-Mart in terms of distribution channel.

There is also a value added to the service offered and perceived as such by the customer. He can customer as he can be sitting at home, a relaxing place for him and order products of its choice avoiding the crowded store, the queue to pay for articles, the noise, and the sensation of being in a rush are also disappearing when shopping online. completing some personal tasks while waiting for the delivery of the products he ordered.

It could also solve the “out of stock” disappointment that the consumer can face after driving (or else) to Wal-Mart, while e-shopping, the consumer would have availability of its desired products.

It also gives its customers to return unwanted products by going to a Wal-Mart physical store instead of having to go to a post-office to return a product purchased online.

3. Is it likely that Wal-Mart will capture any value created by Wal-Mart.com?

Yes, as the customer can either pick up the product in a store, or take back a product for a refund or a replacement, Wal-Mart will be able to capture additional value...