- The entrance of Alibaba in the United States will create an impact on Wal-Mart and Amazon.
- Alibaba can have a threat to Amazon because it seems a prominent online rival in the online retail industry (Bowman).
- People in the United States are tech-savvy, and they intend to buy online products and services from different retailers.
- Alibaba can hit the Brick & Mortar operation of Wal-Mart as well. In the United States, it aims to come up with low prices for customers as compared t this company.
- Low prices every day is a key customer strategy by Wal-Mart. However, Alibaba pricing strategy can hit this pricing strategy.
- Alibaba contains an immense range of products for customers, and it can create an impact on both sales and revenues of these retail giants in the United States retail industry.
- It is a fact that Alibaba is the world’s largest retail company by revenues. If Alibaba gains the success in the United States; it can beat Wal-Mart regarding revenues and become the biggest retailer (Jha).
- Similarly, Amazon’s customers can use Alibaba online platform as a key substitute. The differentiation and positioning process of this new entrant can cause the customer conversion at a large scale.
- In the competitive retail market, the switching cost for customers can be low. Product imitation and differentiation are two key retail trends. Alibaba aims to use these key traits to make the difference (Loeb).
- The biggest impact that Alibaba can create in these two retail giants is regarding the competitive advantage. The company is looking to improve or retain the quality of retail items at low prices. Based on the sales, revenues, differentiation, quality, and rapid delivery services, it can gain and sustain the competitive advantage early.
Work Cited
Bowman, Jeremy. “Amazon Isn’t Walmart’s Only Threat in India.” Fool. Fool, 13 May 2018. Web. 5 November 2018. https://www.fool.com/investing/2018/05/13/
amazon-isnt-walmart-only-threat-in-india.aspx.
Jha, Praneta. “Amazon, Walmart, Now Alibaba — Indian Retail Headed Towards An Oligopoly.” News Click. News Click, 22 August 2018. Web. 5 November 2018. https://www.newsclick.in/amazon-walmart-now-alibaba-indian-retail-headed-towards-oligopoly.
Loeb, Walter. “Alibaba Is A Threat To Amazon, eBay, Walmart And Everyone Else.” Forbes. Forbes, 24 July 2013. Web. 5 November 2018. https://www.forbes.com/sites/walterloeb/2013
/07/24/Alibaba-a-threat-to-amazon-ebay-walmart-and-everyone-else/#6e02890a1e66.
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