Introduction
With e-business and e-marketing becoming dynamic fields, the judicious employment of information and communication technology is essential for organisations to compete and achieve an edge. This introduction delves into the transformative role of ICT within the retail sector, focusing on two industry giants: Amazon.com and the most prominent American company, Walmart. As leaders in digital commerce, the way Amazon and Walmart do traditional business has been redefined by massive ICT endeavours, innovation of their business models, operational excellence, and the resultant better customer experience. Using personalised suggestions for intelligent supply chain management, interweaving ICTs helps companies quickly tune to changes in consumer behaviour and the environment. This paper will scrutinise Amazon and Walmart’s consecutive business models regarding the appropriateness of the usage of ICT to achieve business transformation, increase the results of operations, and safeguard market sustainability. This research goes beyond the surface by including a critical examination of their ICT approaches and interventions, which could help acquire new perspectives on the impact of technology in today’s retail landscape. Indeed, the findings from this study will highlight the core factors that stimulate or impede the fusion of information technology into e-business and e-marketing and thus establish essential guidelines for 21st-century companies struggling with digital transformation.
ICT Transformation at Amazon
Amazon has been a catalyst for change in traditional retail with its entrepreneurial leadership by Jeff Bezos and has aligned ICT into its business model. The following piece explains the underlying factors of Amazon’s continuous use of innovative technology that enhances its development and power in the e-commerce segment. Besides learning the key components of Amazon’s ICT transformation, namely, the e-commerce platform, fulfilment centres and cloud computing services, one is drawn to the company’s technological skill and its effects on the retail industry.
E-commerce Platform
The Amazon online shopping facility is a prime example of ICT through which a business can carry out developmental tasks and interact with customers. Initially, Amazon started as an online bookseller and was soon followed up by a multifaceted platform that now gives users the choice of various products and services in addition to specially-tailored recommendations for individual users (Sheikh and Goje, 2021). Platform success is conceived to be achieved through its user-friendly interface, smooth checkout procedure, and endogenous applications, which operate in concert to keep customers hassle-free in their shopping experience. In addition to being critical drivers of successful sales, they play the role of client retention tool that ensures convenience and reliability.
Personalising and responsiveness of Amazon to customer needs and market trends demonstrate the e-commerce platform’s sustainability. The platform is constantly developing as an integral part of evolving in conjunction with progressive technological innovations. Amazon shows its dynamism and agility in supplying changing consumer tastes and market fluctuations. Amazon keeps innovating frequently to lead e-commerce with the latest upgrades, allowing customers to enjoy dynamic and functional shopping. To sum up, Amazon’s e-commerce company is an evident example of how algorithms positively influence traditional models, and new businesses contribute to sustainable growth. Amazon took advantage of technology to optimise every step in the shopping journey. Thanks to this, it remains the dominant player in global e-commerce, rewriting customer-centricity rules by embedding insights retrieved from data and continuously seeking better operational excellence.
Fulfillment Centers
Amazon’s fulfilment centres, which are widely distributed and mostly modernised, serve as the pillars of intelligent ICT systems within the company (Durand and Baud, 2023). Instead, these fulfilment centres play the role of a multi-fold function, performing order processing, inventory control, and network analytics, among other tasks. Amazon benefits from automation technologies in the warehouses (robots and AI algorithms), delivering orders quickly, within shorter times, and with a considerable precision rate. The strategic location of Amazon’s Furness stations in the proximity of customer-focused regions that are centrally targeted contributes to the capability of the e-commerce giant to deliver goods on time, thus increasing customer satisfaction and retention.
Using ICT within its supply chain network, Amazon ensured that it would improve operational efficiency and have the flexibility and scalability required to enhance supply chain performance. Integrating various modern technologies helps Amazon trace customer behaviour dynamics and ensures easy adjustment using scalable technology. Such flexible scalability is very relevant for Amazon in adapting itself to shoppers with varying demand levels, particularly during peak seasons or surges in orders (de Souza et, 2020). Also, applying technology in accomplishing centres is the Amazon technique to get instant information and insights to assist in seeking improvements in system processes. In conclusion, Amazon’s innovative use of ICT technologies in its delivery process through its fulfilment network plays an immense part in the company’s competitive advantages and ability to provide satisfactory customer service.
Cloud Computing Services
Amazon Web Service (AWS) is one of the critical factors driving Amazon’s advancement into the ICT space. This consensus has been agreed upon in the expert opinion on cloud computing (King, 2022). These provide the structure and operational facilitation needed for the company to operate within cloud standards’ reliability, flexibility, and security. Furthermore, it helps millions of clients worldwide access secure infrastructure and platform solutions. AWS users can exploit a holistic solutions portfolio that comprises virtually all the cloud-related services ranging from computer and storage to analytics (Hauser et, 2019). The AWS infrastructure, which Amazon can leverage based on the scarcity and resilience features, enhances the company’s operational agility, promotes breakthroughs, and achieves cost savings. On top of that, AWS generates much revenue for Amazon, which plays a significant part in business variety and keeps the company’s growth curve growing. The entire portfolio comprises AWS, allowing Amazon to continue its excellent development and innovate in the digital environment.
ICT integration at Walmart
Digital transformation has been a trending topic that keeps up the organisation’s relevance and competitiveness, which is essential to being ahead in this contemporary retail landscape. This subsection explores Walmart’s digitalisation path, employing ICT in its supply chain and customer services to ensure its operations function flawlessly and improve customer experience (Jones, 2009). This article highlights how ICT has changed a retail giant’s business from the ground up through a holistic analysis of Walmart’s omnichannel strategy, industry-wide adoption of big data analytics, and supply-chain improvements.
Omni-channel Strategy
The omnichannel strategy of Walmart now emerges as a strong base of digital transformation efforts as it symbolises a dynamic change in the shopping experience, where customers can switch channels at any time and continue seamlessly from one channel or the other. Using strategies such as ‘Buy Online and Pick Up In-Store’ and ‘Same-Day Delivery,’ Walmart has successfully brought the interaction of physical retail and digital retail together (Nicolaï and Grange, 2021). Thus, these programs show that the retailer is ICT-bearing and is interested in elevating consumer experience and accessibility.
Incorporating ICTs to scale up Walmart’s operations and capacity has interconnected customers with multiple touchpoints, i.e. stores, mobile apps, websites, etc. Due to enhanced ranges by reducing barriers, overall, the services and goods become even more convenient and accessible. This multi-channel approach offers customers an all-around shopping experience, builds loyalty, and looks for their clients’ pockets (Durand and Baud, 2023). Customers can do multichannel shopping smoothly, working online and offline channels at the right time and place that fits them best. The omnichannel approach endows Walmart as a go-to place for online and offline retail functions, establishing its dominance within digital scoring. The paradigm of ICT in the ICT industry will help to remove boundaries between physical and digital shopping environments. So Walmart will be apt to sustain and grow to become a reliable partner in retail and other channels.
Big Data Analytics
Walmart touches upon a giant step of its digital transformation tendering through big data analytics tech gadgets, whereby it can utilise data for better tactical decision-making and operational excellence. Due to the use of analytical tools to make incredible and unbelievable progress in customer behaviours, market trends, and warehouse operations, Walmart can act super accurately and make better decisions with agility (Sheikh and Goje, 2021).
By analysing the large pool of data, the company can be supported in creating a price framework, more precise demand forecasts, and even optimising product distribution, all of which are the different needs of customers and markets (Sheikh and Goje, 2021). The forecasting capabilities brought by extensive data analysis give Walmart a head start in identifying customer requirements, customising the offerings and sharpening operational excellence, leading to business performance with flying colours.
In addition, Walmart’s use of large amounts of data analytics establishes market trends and highlights new opportunities, giving the company an upper hand in the dynamic retail environment (K and Kadya, 2020). By tracking the dynamics of consumer preferences as well as the shift of the industry, Walmart can be assured of its capacity to react by appropriately examining and developing its strategies to maximise its profitability on emerging opportunities and stay a market leader.
Supply Chain Optimisation
Information technology (ICT) manifests in Walmart’s supply chain performance improvement plans, creating avenues through which the organisation can reduce costs and improve product availability (Lang and Lang, 2021). One is smart ID, one of many ICTs Walmart is considering applying to its supply chain. They use RFID technology for inventory tracking and blockchain for enhanced supply chain traceability, amongst others (Tomita, 2022). Installing RFID technology will enable Walmart to efficiently determine the stock level of available on-shelf items in real-time, thus reducing the probability of stockouts and bringing about the ideal replenishment processes. Besides that, the logistics blockchain provides a historical trail that keeps a registry of transactions and product operations. This greater transparency additionally diminishes the probability of occurrence of risks and increases trust within stakeholder groups, namely, suppliers and customers. As a result, in the supply chain in which Walmart successfully incorporate ICT, the company can improve its operational resilience and diminish disruptions. It is, in turn, vital for the delivery of value to customers in a complex market environment.
The case of Walmart, which made ICT integration its digital transformation strategy, clearly shows a proactive side of the company that allows it to adapt quickly and be in a better position to face the challenges of the changes in digital retailing. Through ICT utilisation, Walmart improves its operational efficiency, customer experience optimisation, and strategic decision-making (K and Kadya, 2020). This position saves its market leadership and guarantees growth for the company due to disruptions and changes in consumer preferences.
Comparative Analysis
The business models of Amazon and Walmart, two leading retailers, are different in that they have turned to digital marketing with unique methods to leverage ICT in business transformation. Even though they are both digital platforms, their strategies and respective successes show that they are different because they have unique technology adaptations, market forces, and firm specificities (Charles and Uford, 2023). This paper examines and characterises the dissimilar transformations that Amazon and Walmart undertook to harness ICT to drive efficiency in operations, improve customer engagement, and sustain long-term growth.
Amazon in e-commerce was the most prominent demonstration of how the company continued to get to the top and be customer-centric. As an e-commerce giant that started as an online bookstore in 1995, Amazon has rapidly expanded its inventory matters while utilising information and communication technology (ICT) to manage or improve its business fundamentals (Furr et al., 2022). At the core of this achievement, ICT tools are used after thorough algorithms and analytics selection within the website to demonstrate how Amazon is a master of ICTs. Personalised recommendations and an enhanced user experience led to a torment-free buying journey on Amazon. Thus, the volume of sales conversions rose (Sheikh and Goje, 2021). Undaunted loyalty was also built. The tactical incorporation of ICT into Amazon’s operations implemented the system as a powerful tool that propelled the organisation into a market leader and a trendsetting company in the digital retail landscape.
That is what Amazon shows through their fulfilment centre network when striving for the highest efficiency it can reach through ICT integration. These fulfilment centres are driven by the latest technology to make them fast, flexible, and efficient. Automated sorting systems, robotics, and AI algorithms work together to minimise tasks and increase efficiency in achieving objectives like order processing, inventory management, and logistics optimisation (Durand and Baud, 2023). Utilising ICT in this manner, Amazon helps with quick and precise orders and intensifies the customers’ feelings. Neither does the company seek to achieve the goal by stepping into the cloud computing realm of Amazon Web Services (AWS), which could be improved in its planning. Amazon Web Services (AWS) is the platform that solely operates Amazon.com as an internal service and extends its services to offer a broad range of products. The more revenue it generates, As the company’s ability to combine these modern technologies comes to the fore, Amazon is exemplified in its ability to not only use ICT to improve its operations but also to innovate solutions to a market’s and the broader public’s needs.
While Walmart has encountered hardware and network infrastructure problems to become completely digital, brick-and-mortar stores still dominate its operating model. On the contrary, the organisation initiated a turnaround journey. As a result, it emphasised the participation of information and communication technologies (IC), trying to stay competitive with the increasing introduction of modern technologies to the retail landscape (Kumar and Venkatesan, 2021). A foundational element of Walmart’s digital transformation is the omnichannel strategy, which is the crucial connection point between the digital and physical channels to provide customers with a consistent shopping experience (Kenney, 2021). Moving through launched products such as ‘Buy Online, Pickup In-Store’ and ‘Same-Day Delivery’ illustrates Walmart’s intellectual capital during the assimilation of technology to transform both digital and physical commerce and meet modern customers’ needs. The ICT application is a crucial element of Walmart’s strategy, maximising customer satisfaction through convenience while capitalising on the company’s physical presence. First, this technology integration provides Walmart with many benefits because it modernises its operations. At the same time, this makes it possible for the company to prepare for new market trends and changing consumer behaviour. To that end, Walmart’s omnichannel approach is a proactive step that harnesses technology to enhance its offerings, providing the retailer an edge in the digital era. This thus enables long-term viability and success and develops over an era of digitalisation (Kumar and Venkatesan, 2021).
Technological integration, which is omni-channel in nature and encompasses advanced analytics of big data and the supply chain, is also strategically facilitated by Walmart. With the help of big data analysis algorithms, Walmart gains invaluable perspectives on consumer behaviour, market habits, and inventory management patterns. With advanced analytic tools, the company can price its products optimally. It also enables Walmart to make its demand forecasting more accurate and make the product assortment match customer needs and market demands. This technique gives Walmart a competitive advantage and engenders flexibility and responsiveness across its value chains. This, however, further underlines that Walmart’s brilliant chain excellence is still built on the efficient application of ICT (Watanabe, 2018). RFID technology is gaining increasing adoption for inventory track and traceability, and blockchain solutions secure improved transparency and traceability. This sentiment shows that Walmart pays attention and commits to supply chain operations. By working with these technologies, Walmart Corporation can efficiently manage inventories of items, resulting in a decrease in stockouts or delayed deliveries of products (Nicolaï and Grange, 2021). The application of ICT in the strategic decision of Walmart shows its effectiveness in terms of a few workforce requirements but also helps Walmart to be more flexible so that they can adjust to market changes easily and keep their competitive advantage in the retail industry.
Last, the most significant revelation of the business transformation in ICT by Amazon and Walmart is that their approaches are not alike, though complementary. While this allowed Amazon to capture market leadership for e-commerce based on cutting-edge innovation and customer-centricity, the strategic application of ICT also saved Walmart’s market share and operational efficiency (Nicolaï and Grange, 2021). Although enterprises might navigate through a different ICT landscape, the common thing is that they both show the power of ICT in increasing competitiveness, sustainability, and economy in this era of digital marketplaces.
Conclusion
In the end, the business models of Amazon and Walmart indicated the use of information and communication technologies (ICT) to transform the way we think about business processes and gain a sharp competitive edge in retail. By making clever use of technology and acceptance, both companies have adapted to the dynamic environment of e-commerce, not just for survival but for success. These technological capabilities they have to adapt to engaging customers and supply chain management, among others, through ICT define them as visionaries in business transformation. As we shift to the future, the application of ICT perfectly suits the purpose of organisations willing to stay competitive by addressing emerging customer needs, taming disruptive technologies, and discovering untapped opportunities, which will empower them to thrive in the dynamic digital space. With the progress of technology comes the need for businesses to be ready to use the latest innovations to lead innovation, make one’s business operations more efficient, and survive in the cutting-edge business environment.
Reference list
Baud, C. and Paris, S. (2021). They are making profits by leading retailers in the digital transition. A comparative analysis of Carrefour, Amazon and Wal-Mart. [online] Available at: https://hal.science/hal-03332318/document [Accessed 27 Mar. 2024].
Charles, I. and Uford, I. (2023). COMPARATIVE ANALYSIS AND EVALUATION OF BUSINESS AND FINANCIAL PERFORMANCE OF AMAZON.COM: THREE YEARS CRITICAL REVIEW OF EXCEPTIONAL SUCCESS. European Journal of Business, Economics and Accountancy, [online] 11(2). Available at: https://www.idpublications.org/wp-content/uploads/2023/07/Full-Paper-COMPARATIVE-ANALYSIS-AND-EVALUATION-OF-BUSINESS-AND-FINANCIAL-PERFORMANCE-OF-AMAZON.com_.pdf [Accessed 26 Mar. 2024].
de Souza, C.A., Szafir-Goldstein, C. and Aagaard, A. (2020). IoT in the Context of Digital Transformation and Business Model Innovation: the case of a traditional Brazilian wholesaler. 2020 Global Internet of Things Summit (GIoTS). Doi: https://doi.org/10.1109/giots49054.2020.9119527. [Accessed 27 Mar. 2024].
Durand, C. and Baud, C. (2023). Profit-making, costs, and investments in the digitalisation of retailing—The uneven trajectories of Carrefour, Amazon and Walmart (1995–2019). Competition and Change. Doi https://doi.org/10.1177/10245294231204973. [Accessed 27 Mar. 2024].
Furr, N., Ozcan, P. and Eisenhardt, K.M. (2022). What is digital transformation? Core tensions facing established companies on the global stage. Global Strategy Journal, 12(4). doi: https://doi.org/10.1002/gsj.1442. [Accessed 27 Mar. 2024].
Hauser, M., Günther, S.A., Flath, C.M. and Thiesse, F. (2019). Towards Digital Transformation in Fashion Retailing: A Design-Oriented IS Research Study of Automated Checkout Systems. Business & Information Systems Engineering, 61(1), pp.51–66. doi: https://doi.org/10.1007/s12599-018-0566-9. [Accessed 27 Mar. 2024].
Jones, E.P. (2009). Lost in the City. [online] Harper Collins. Available at: https://www.goodreads.com/book/show/11752.Lost_in_the_City.
K, K.P. and Kadya, V. (2020). The Sustained Improvements in E-commerce Business through Big Data and Data Analytics of Wal-Mart Company. [online] papers.ssrn.com. Available at: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3674992 [Accessed 26 Mar. 2024].
Kenney, M., Pearson, D., and Zysman, J (2021). OUP accepted the manuscript. Socio-Economic Review. Doi: https://doi.org/10.1093/ser/mwab014. [Accessed 27 Mar. 2024].
Kumar, V. and Venkatesan, R. (2021). Transformation of Metrics and Analytics in Retailing: The Way Forward. Journal of Retailing, 97(4), pp.496–506. doi https://doi.org/10.1016/j.jretai.2021.11.004. [Accessed 27 Mar. 2024].
Lang, V. (2021). Digitalization and Digital Transformation. Digital Fluency, 1(1), pp.1–50. doi https://doi.org/10.1007/978-1-4842-6774-5_1. [Accessed 27 Mar. 2024].
Nicolai and Grange (2021). The Digital Transformation of Retail During the Covid-19 Pandemic: A Comparative Study in Canada, China, And France. [online] Proud Pen – Open Access Book Publisher. Available at: https://www.proudpen.com/book/the-impact-of-covid-19-on-e-commerce/the-digital-transformation-of-retail-during-the-covid-19-pandemic-a-comparative-study-in-canada-china-and-france/. [Accessed 27 Mar. 2024].
Oubari, A., Badawi, S., Noor Kittaneh and Haitham Nobanee (2022). Financial Analysis: A Comparison Study between Amazon and Walmart. [online] ResearchGate. Available at: https://www.researchgate.net/publication/358021906_Financial_Analysis_A_Comparison_Study_between_Amazon_and_Walmart [Accessed 27 Mar. 2024].
- King, D. (2022). Strategies for bridging traditional and digital ecosystems. Handbook on Digital Business Ecosystems, pp.25–39. doi https://doi.org/10.4337/9781839107191.00008. [Accessed 27 Mar. 2024].
Sheikh, R.A. and Goje, N.S. (2021). Role of Big Data Analytics in Business Transformation. Internet of Things in Business Transformation, pp.231–259. doi:https://doi.org/10.1002/9781119711148.ch13. [Accessed 27 Mar. 2024].
Tomita, A. (2022). Aligning Digital Transformations with Value Creation Based on International Integrated Reporting. [online] IEEE Xplore. Doi:https://doi.org/10.23919/PICMET53225.2022.9882809. [Accessed 27 Mar. 2024].
Watanabe, C., Naveed, N. and Neittaanmäki, P. (2019). Digital solutions transform the forest-based bioeconomy into a digital platform industry – A suggestion for a disruptive business model in the digital economy. Technology in Society, 54, pp.168–188. doi https://doi.org/10.1016/j.techsoc.2018.05.002. [Accessed 27 Mar. 2024].
Wu.x and Gerefi (2019). (PDF) Amazon and Alibaba: Internet governance, business models, and internationalisation strategies. [online] ResearchGate. Available at: https://www.researchgate.net/publication/328711863_Amazon_and_Alibaba_Internet_governance_business_models_and_internationalization_strategies [Accessed 27 Mar. 2024].
write