#1 — Walmart’s supercenters are a point of competitive strength Walmart’s supercenters are the most defensible asset Walmart has against Amazon for two reasons. One, they sell groceries, and, two, they play on a one-stop shop ethos. As much as Amazon desires to get into the grocery business, as evidenced by Amazon Go and Amazon’s rumored new grocery concept in Los Angeles that will debut in 2020, thus far Amazon has made few inroads on Walmart’s most sacred turf. Therefore, Walmart still has time to spare on this well-positioned front. More importantly, the one thing on which Amazon is years, if not decades, away from making an all out assault is the one-stop-shop aspect of Walmart’s supercenters. For those shoppers that still choose a physical shopping experience, even in the future, and especially when augmented by Walmart’s latest BOPIS (buy online, pickup in store) and drive up capabilities, Walmart’s value proposition is still quite compelling within the economy of these shoppers’ time. Supercenters enable Walmart customers to do more in less time when grocery shopping is a key part of the equation. As long as the next best alternative is still the vagaries of online grocery delivery, e.g. bananas that are the wrong color, melted ice cream, etc., then Walmart’s supercenters will always provide a compelling one-stop shop alternative for people who just don’t have the time or desire to go to multiple stores anymore. The above is the same reason why the Walgreens and Kroger partnership has gained so much buzz and momentum. The psychological aspect of the best way to save time, especially when grocery is involved, is too important to ignore. E-commerce is one way to save time, but so too is a quick stop on the way to or from work, on the way out of the gym, or while picking up the weekly groceries or medical prescription. These are experiments Amazon still has yet to run to the same capitally intensive extent. Required: Summarize the big reasons why supercenters are brilliant.
#1 — Walmart’s supercenters are a point of competitive strength Walmart’s supercenters are the most defensible asset Walmart has against Amazon for two reasons. One, they sell groceries, and, two, they play on a one-stop shop ethos. As much as Amazon desires to get into the grocery business, as evidenced by Amazon Go and Amazon’s rumored new grocery concept in Los Angeles that will debut in 2020, thus far Amazon has made few inroads on Walmart’s most sacred turf. Therefore, Walmart still has time to spare on this well-positioned front. More importantly, the one thing on which Amazon is years, if not decades, away from making an all out assault is the one-stop-shop aspect of Walmart’s supercenters. For those shoppers that still choose a physical shopping experience, even in the future, and especially when augmented by Walmart’s latest BOPIS (buy online, pickup in store) and drive up capabilities, Walmart’s value proposition is still quite compelling within the economy of these shoppers’ time. Supercenters enable Walmart customers to do more in less time when grocery shopping is a key part of the equation. As long as the next best alternative is still the vagaries of online grocery delivery, e.g. bananas that are the wrong color, melted ice cream, etc., then Walmart’s supercenters will always provide a compelling one-stop shop alternative for people who just don’t have the time or desire to go to multiple stores anymore. The above is the same reason why the Walgreens and Kroger partnership has gained so much buzz and momentum. The psychological aspect of the best way to save time, especially when grocery is involved, is too important to ignore. E-commerce is one way to save time, but so too is a quick stop on the way to or from work, on the way out of the gym, or while picking up the weekly groceries or medical prescription. These are experiments Amazon still has yet to run to the same capitally intensive extent. Required: Summarize the big reasons why supercenters are brilliant.
Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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#1 — Walmart’s supercenters are a point of competitive strength
Walmart’s supercenters are the most defensible asset Walmart has against Amazon for two reasons. One, they sell groceries, and, two, they play on a one-stop shop ethos.
As much as Amazon desires to get into the grocery business, as evidenced by Amazon Go and Amazon’s rumored new grocery concept in Los Angeles that will debut in 2020, thus far Amazon has made few inroads on Walmart’s most sacred turf. Therefore, Walmart still has time to spare on this well-positioned front.
More importantly, the one thing on which Amazon is years, if not decades, away from making an all out assault is the one-stop-shop aspect of Walmart’s supercenters. For those shoppers that still choose a physical shopping experience, even in the future, and especially when augmented by Walmart’s latest BOPIS (buy online, pickup in store) and drive up capabilities, Walmart’s value proposition is still quite compelling within the economy of these shoppers’ time.
Supercenters enable Walmart customers to do more in less time when grocery shopping is a key part of the equation. As long as the next best alternative is still the vagaries of online grocery delivery, e.g. bananas that are the wrong color, melted ice cream, etc., then Walmart’s supercenters will always provide a compelling one-stop shop alternative for people who just don’t have the time or desire to go to multiple stores anymore.
The above is the same reason why the Walgreens and Kroger partnership has gained so much buzz and momentum. The psychological aspect of the best way to save time, especially when grocery is involved, is too important to ignore. E-commerce is one way to save time, but so too is a quick stop on the way to or from work, on the way out of the gym, or while picking up the weekly groceries or medical prescription.
These are experiments Amazon still has yet to run to the same capitally intensive extent.
Required:
Summarize the big reasons why supercenters are brilliant.
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