Friday, February 27, 2015

Business model of Dell, Wal-Mart, Amazon, and eBay

Amazon: Books, Online store
E Bay: Auction site
Wal-Mart: General merchandise
Dell: Technological Corporation

1. Amazon
They do book sell better than anyone else and also have warehouse especially customer buying experience. For here let focus about pricing.
Amazon is brilliant since they would be able to bring the price down as much as possible plus they make the buyer and seller feel more convenient. On the other hand, this company specifically in online ordering, online product searching, and product delivery which getting the correct product to customer in timely manner. Beside of this, Amazon has many business partners, in fact amazon sells the other company products on their own website. Additionally, the customer can order the product and get the product in short period of time but it depend the customer preference. More importantly, both customer and Amazon will gain due to the fact that there is no physical market so buyer and seller just sit in front of their computer or using their device to sell or buy the product.

2. eBay
It was their innovative idea to offer auction online service. It is easy to duplicate and available on many different sites. Moreover, their core competency seem to be a high traffic website, with a large amount of it to eBay it can bring large number of seller and buyer together. Yet, they allow customer to determine the price of shipping which allow them to maximize their profit in this area also. The good thing is that they also provide easy purchase and safe transaction through the payment company call PayPal. To recap, it is an auction which is risk of low selling price. Interestingly, user might need to bid among each other in order to get any particular good.

3. Wal-Mart
They have their own culture which usually employ hardworking, efficient as they frequently want their input and idea to push the company become better remarkably the company always want people to receive low price but best service that is why this type of culture is rare and difficult to compete. By focusing on mass supply chain and mass consumerism, they can sell their product to customer at lower price. One stops shopping with a lower price and they can pass that to customer. Moreover, it is easy to access to the public. So with one stop at Wal-Mart, people can find and buy anything. Beside of this if we talk about the transportation or shipping system it is also fast enough combine with the suitable price as well.

4. Dell

They have the direct business model which can help to cut the cost. Customer need to go to retailer to order and charge the cost to ship to their house. Instead of doing this, customer can buy online by visiting the company website or telephone to Dell representative meaning that there is no middle man involved. It also can develop direct relationship with customer. Another thing is built to order which mean that customer can order what they want with their computer. This is a good way to satisfy customer and the company can also reduce the money spending on searching for new design and development. So this is point that they can build a long lasting relationship with customer and always stay top ahead from their competitors.

No comments:

Post a Comment