Evaluation of the business model for Wal-Mart.com. Is it a successful model?
Wall-Mart is using the click and mortar business model, it is a multi-channel business model that leverages the best of both online and offline operations.
One of the advantages of this model is that it offers products and services through multiple channels: through its brick and mortar stores and online store. In addition, most of the products offered by Walmart.com have successful e-tailing characteristics. They are relatively inexpensive items, frequently purchased items, commodities with standard specifications and well know packaged items.
The site offers superior service in the form of extensive information:
? Order tracking
? Purchase history
? Shipping costs and times information
? Physical store locator
? Product information, comparison and recommendation
? Special promotions in physical stores
? New product information in physical stores
? Wal-Mart events information
? Idea center on how to best use purchased products: health, recipes, or personal care and style.
This model also provides benefits of flexibility and convenience: registry services for having a baby or weddings, creating wish lists so others know what you like, and gift cards. It also offers ability to pickup your online orders in-store. Personalized and customized services such as digital photo center.
Most of these benefits would not be feasible with other business models. Wall-Mart's distribution channel is used very effectively to provide such benefits. Established relationships with manu ...