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Essay on The Impact of E-Commerce for the Wal-Mart Corporation


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Essay on The Impact of E-Commerce for the Wal-Mart Corporation

Most companies have ventured into e-commerce, and many of these attempts have not met expectations. For example, the acknowledged technology leader in the retail industry, Wal-Mart, has gone through several redesigns and sales strategies in its online activities and an outright suspension of its Web site. Because of the poor showing of its e-commerce activities, Borders eventually outsourced its Internet sales activities to Amazon. Bank One dissolved its online banking entity, Wingspan, and integrated its online operations into the bank. 1 Wal-Mart had inept strategies and reacted slowly as other companies in their industry succeeded at using the Internet. After Amazon initiated its business activities, Barnes and Noble imperiled its future by attempting to imitate Amazon, by creating a separate company that did not take advantage of the “brick-and-mortar” presence and existing logistical systems. 2 Compaq was eventually purchased by Hewlett-Packard because it could not match Dell's Internet sales prowess and superior Internet-based supply-chain operations, which provided significant cost advantages.

We now can examine the e-commerce records of numerous companies to ascertain the characteristics of success and failure in e-commerce activities. An extensive framework and analysis by which to measure the effectiveness and benefits (payoffs) of an e-commerce initiative includes a careful analysis of the causal relationships and the impact of potential managerial actions in e-commerce on long-term corporate profitability of Wal-Mart. It also includes an extensive listing of potential measures of inputs, processes, outputs, and outcomes. As Wal-Mart considers beginning or broadening e-commerce initiatives, a clearer understanding of the benefits and costs is critical. To obtain adequate resources, companies must justify the potential payoffs from an e-commerce investment and calculate the return on investment. This book provides the objectives, drivers, and measures of e-commerce success.

In the late 1980s, Wal-Mart debuted a dial-up system, later dubbed RetailLink, to provide suppliers with online access to Wal-Mart sales data and projections....

 

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