over 300 word
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✏ Case: Walmart Gets Serious about E-Commerce
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Due Date: January 10
Goal and Purpose
The goal of this assignment is to analyze Walmart’s e-commerce situation and strategy.
Directions
Read the following case (taken from Chapter 1 of our textbook). You are welcome and
encouraged to do additional research of your own.
As the world’s largest retailer, Walmart has built thousands of brick-and-mortar stores in the United
States, Mexico, and elsewhere. Although a success story when it comes to traditional retail locations,
Walmart has struggled with its e-commerce efforts, with recent online sales accounting for about 3
percent of the company’s $300 billion in annual sales. The company has tried several different e-
commerce strategies in the past, but none of them was an overwhelming success. Some company
insiders objected to the pricing strategy used for online purchases; they were fearful that Walmart’s
lower prices online would take customers (and sales) away from the retail locations.
Doug McMillon, Walmart’s CEO since 2014, believed a significant change was needed in the company’s
e-commerce business, and he recently made changes in a big way. Over the past two years, Walmart
spent billions to acquire several online companies to expand its e-commerce business in an effort to
take a small bite out of retail giant Amazon’s success. In 2016, Walmart purchased Jet.com, an e-
commerce site that sells a little bit of everything (books, clothing, electronics, etc.) at discount prices.
Once the $3 billion acquisition was completed, Jet’s co-founder and CEO, Marc Lore, who now runs
Walmart’s e-commerce platform, worked with McMillon to identify other established online companies to
add to their e-commerce portfolio and add they did.
First Walmart purchased footwear e-tailer ShoeBuy for $70 million in January 2017. The following
month, Walmart bought outdoor specialty retailer Moosejaw for $51 million. Then in March, Walmart paid
$75 million for ModCloth, an eclectic shopping site for women’s fashions. Walmart is also said to be in
negotiations to buy Bonobos, a hip fashion retailer geared to millennial males.
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Reaction to the acquisitions has been mixed, depending on whom you ask. Retail analysts applaud the
company’s radical move, pointing out that several well-known traditional retailers have closed their doors
or filed bankruptcy because they failed to take part in the e-commerce revolution. Fashionistas, on the
other hand, are lukewarm about the move. However, McMillon’s decision to allow online retailers to
operate independently may help retain loyal customers. The new e-commerce strategy may also lure
typical in-store shoppers to take advantage of the expanded offerings available through both
Walmart.com and Jet.com.
Submission Instructions
In the textbox, answer the following questions:
1. What are some advantages of Walmart purchasing established web businesses?
2. What impact is Walmart’s acquisition of nontraditional retailers likely to have on the shopping habits
of Walmart’s customers?
3. How will the aggressive e-commerce plan implemented by Walmart affect operations at its retail
locations?
Grading and Feedback
Please view the rubric for a description of the grading and points. Please use proper spelling and
grammar. The total word count of your response should be at least 300 words (total, not per
question). You are welcome to write more if you choose.
Important Information on Turnitin:
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information on submitting an assignment to Turnitin here.
(https://help.turnitin.com/integrity/student/canvas/assignments/submitting-an-assignment.htm)
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Walmart Gets Serious about E-Commerce
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Sources: Brad Stone and Matthew Boyle, “Amazon Won’t Know What Hit ’Em!” Bloomberg Businessweek, http://www.bloomberg.com, May 8–May 14, 2017;
“What an Acquisition of Bonobos Would Signal About Wal-Mart’s Strategy,” Forbes, http://www.forbes.com, May 9, 2017; “Walmart Acquires Niche Online
Retailers, to the Dismay of Hipsters,” Denver Post, http://www.denverpost.com, March 24, 2017; Alana Abramson, “Walmart Acquires Online Women’s
Retailer ModCloth,” Fortune, http://fortune.com, March 17, 2017; Phil Wahba, “Walmart’s 29% Online Holiday Season Growth Sends Shares
Jumping,” Fortune, http://fortune.com, February 21, 2017; Laura Heller, “Take That Amazon: Walmart Buys Moosejaw for $51
Million,” Forbes, http://www.forbes.com, February 15, 2017; “Walmart Acquires ShoeBuy for $70 Million,” Business Insider, http://www.businessinsider.com,
January 6, 2017.
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总得分： 40 ，满分 40
标准 等级 得分
10 分
10 分
10 分
10 分
Advantages
What are some advantages of Walmart
purchasing established web businesses?
10 得分
Full Points
The question was
answered in full with a
detailed and well-thought
response.
5 得分
Partial Points
The question was
answered but
could use more
detail.
0 得分
No Points
The
question
was not
answered.
Impact
What impact is Walmart’s acquisition of
nontraditional retailers likely to have on
the shopping habits of Walmart’s
customers?
10 得分
Full Points
The question was
answered in full with a
detailed and well-thought
response.
5 得分
Partial Points
The question was
answered but
could use more
detail.
0 得分
No Points
The
question
was not
answered.
Implementation
How will the aggressive e-commerce
plan implemented by Walmart affect
operations at its retail locations?
10 得分
Full Points
The question was
answered in full with a
detailed and well-thought
response.
5 得分
Partial Points
The question was
answered but
could use more
detail.
0 得分
No Points
The
question
was not
answered.
Spelling, Grammar, and Word Count 10 得分
Full Points
The assignment was at
least 300 words (in total)
with correct spelling and
grammar.
0 得分
No Marks
The response was either under
the required word count and/or
had spelling and grammatical
errors.