Description
Comparative Analysis Problem: Amazon.com, Inc. vs. Wal-Mart Stores, Inc.
Assignments are attached.
Unformatted Attachment Preview
Purchase answer to see full attachment
Explanation & Answer
To begin the comparison of the inventory management system of Walmart and Amazon, it is important to look at the basic numbers first – the average inventories of these two companies. For 2014, Walmart had an average inventory of 44,999 million dollars while Amazon had 7,855 million dollars. In comparison, the inventory of Walmart is 5.73 times greater than that of Amazon. This is something that could be expected since it is a common knowledge that unlike Walmart, Amazon does not rely on physical stores in order to sell items. Filling up Walmart’s physical stores with inventories really is evident in this comparison. This signifies that Walmart has more to think about in terms of inventories compared to Amazon. Aside from this, it can also be implied that the power of internet in providing a ‘virtual’ choice for customers significantly reduces the amount of inventory that a company has to manage. As one expects it to be, the amount of sales for the two companies could also differ on a magnitude close to the difference in magnitude of their inventories. Taking a look at it, the net product sales of Amazon in 2014 is 70,080 million dollars while Walmart had a net product sales of 482,225 million dollars. These two qua...