Homework Help is Here – Start Your Trial Now!
Business
Operations Management
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. 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 the 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. Critical Thinking 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? 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.

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. 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 the 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. Critical Thinking 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? 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.

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
See similar textbooks
icon
Related questions
Question

How will the aggresive e-commerce plan implemented by Walmart affect operations at its retail location?

Chapter 1 Understanding Economic Systems and Business 57 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. 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 the 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. Critical Thinking 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? 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.
Transcribed Image Text:Chapter 1 Understanding Economic Systems and Business 57 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. 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 the 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. Critical Thinking 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? 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.
Critical Thinking Case Walmart Gets Serious about E-Commerce 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 cofounder 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.
Transcribed Image Text:Critical Thinking Case Walmart Gets Serious about E-Commerce 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 cofounder 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.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Strategic capability
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.
SEE MORE TEXTBOOKS