Essay - Wal-mart.vom What is the Impact of Wal-mart.com on Customer-borne Transaction...

Wal-Mart.vom

***** is the impact of Wal-Mart.com on customer-borne transacti***** costs?

The impact has been to significantly reduce *****m, as the e-commerce site is integrated directly in***** the company's log*****tics systems, as is implied in ***** article. Wal-Mart took the time to figure out how to break down large shipments in***** individual orders before going online; this w***** a critical success factor for ********** and a primary reason their cost per *****on online is significantly belo***** that ***** a store-based transaction. The time taken to integrate ordering, supply chain and pricing systems with the website was one of *****s' best decision in structur*****g Wal-Mart.com.

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

*****, in a variety of areas Wal-Mart.com will create ***** value. First, *****re is the service strategy ***** Wal-Mart.com is relying on, where customers who buy a product online can return it to any ***** their over 2,000 s*****ries. This is a major competitive advantage ***** other *****-only retailers. Second, Wal-Mart.com will also support in-store sales of products by making it possible to order online ***** then pick up the *****em at the s*****re. This will drive fur*****r a multi-ch*****nnel selling ***** for Wal-Mart.

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

*****, both from a transaction-by-transaction level ***** the product ordered online can be either picked ***** ***** the store or ********** there ***** a refund, and ***** through the use of cross-selling and up-selling ***** through Wal-Mart.com to drive customers into the ***** for the most competitive ***** areas, which during ***** holiday season, is toys.

***** Wal-Mart have pursued e-commerce more aggressively sooner?

No, it was wise to wait ***** see what lessons were being learned both from their ***** and online-based competi*****rs. Most importantly however, Wal-mart took the time to understand why integration of their systems and the ability to break ***** larger ***** into smaller ones was critical for ***** operations.

What do you think the potential impact of Wal-Mart.com will be on the parent company's efforts to exp***** internationally?

Wal-Mart has traditionally struggled in international markets where the nations' cultures they are going in***** vary significantly from the U.S. This is why the German version of Wal-Marts ***** not succeeded in addition to the Korean ones. Yet the website, once translated for personalization, would make global expansion much easier for the company compared ***** ***** challenges ***** have had in penetrating new markets with their superstore