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Brand Consultant Says Walmart Can’t Match Amazon’s “Value Proposition”

March 21, 2017: 12:00 AM EST
Brand building consultant Denise Lee Yohn says Walmart’s current plan to “out-Amazon Amazon” is improving its e-commerce capabilities, which is a good thing, but in the long run it’s not a winning strategy. Offering free shipping on orders over $35, for example, makes the customer think about money with every online transaction. Amazon’s Prime members pay an annual fee and forget about it. Moreover, Prime gives members access to movie streaming, photo storage, music streaming, and early access to time-sensitive “Lightning Deals.” Walmart can’t compete with this “value proposition.” What it should do, Yohn says, is leverage its excellent physical distribution and retail network, improve the in-store experience, promote omnichannel shopping and fulfillment options, and develop in-person service innovations.
Denise Lee Yohn, "Walmart Won’t Stay on Top If Its Strategy Is “Copy Amazon”", Harvard Business Review, March 21, 2017, © Harvard Business School Publishing
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