Business Finance
Troy University Uber Online Distribution Strategy Discussion

Troy University

Question Description

Please read the comparison and answer the 4 questions below completely and thoroughly. Each question is worth 25 points possible. (Answers copied from another source will result in a zero.)

"Less than a decade ago, no one considered that Amazon might someday give Walmart something to worry about. But today, Amazon is a $107 billion a year company. Walmart, though, brings in about 4.5 times more sales, at $482 billion. However, Amazon has grown 20 percent annually over the past four years, while Walmart’s growth over the same time period has been essentially flat. Already, Amazon is cutting in to Walmart’s sales. And, if this pace keeps up, Amazon could be the one to ultimately dethrone the king of retail. At the center of the battle is price. While low price may ultimately declare a winner in this game of cat and mouse, both parties also need to take extreme caution when it comes to overdoing it. Reckless price-cutting will likely do more damage than good to both companies. In the process, both companies are trying to find other ways of outdoing each other, like personalized service and delivery options. Amazon seems to have the upper hand in this area, but Walmart is making strides by investing heavily in its fulfillment network and combining the best of its online and off-line operations. The winner will have to do more than offer the lowest price. Selection, convenience, and buying experience will be vital to winning online."

Please answer the following questions:

  1. For Amazon and Walmart, is it more important to have lower prices or to have the perception of lower prices?
  2. What pricing strategies do the two companies use? Do they use the same ones? Why or why not?
  3. In the battle for online dominance, just how important is low price?
  4. How important are other benefits that Amazon and Walmart each deliver? List and discuss these benefits.

Notes:

1. Since this assignment document that will be run through Turnitin, the answers can not be copied from other sources, and must be original.

2. 25 points for each question. Our teacher requires a thorough analysis, response and explanation, and we will get 25 points.

Final Answer

Attached.

Marketing - Outline
I.
II.

Question One- Pricing strategy
Question Two – Pricing methods

III.

Question Three –Online platforms and pricing

IV.

Question Four - Benefits


Running head: MARKETING

1

Marketing Homework
Name
Institution

MARKETING

2
Marketing Homework

Question One: For Amazon and Walmart, is it more important to have lower prices or
to have the perception of lower prices?
It is essential to have a perception that the companies have lower prices. This is
because the perception makes the people make a purchase decision. They can forgo buying a
product from one company and purchase goods from another firm because of the same.
Consumers also like to purchase quality products at an affordable price (Aschemann-Witzel,
2018). Most of the companies use lower prices to penetrate a market and claim a market
share before they get established in the same places. It is, therefore, no surprise that the
consumers will consider the price as one of their primary reason as to why they make a
decision. One can look at specific rates and adopt the same product if they get the same
satisfaction from the two products they compare; customers can buy the one with the lower
price. That is easy to look at; however, there...

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