Business Model Comparison Essay

1323 words - 6 pages

Business Model Comparison
Name
Institution

Wal-Mart and Tarket
Wal-Mart and Tarket are the two leading retail stores in the United States with a customer base of more than 100 million shoppers. The stores run their operations in different parts of the United States and their annual posting for revenue accounts for a significant percentage of earnings for retails businesses in the US (Zikmund & Babin, 2013). Together, the stores have a capital base worth billions in dollars. Over the years, the stores have engaged in stiff competition in trying to increase their customer base.
The companies share commonalities for being the only retailing businesses that record growth in times ...view middle of the document...

According to Basker (2007), the management takes responsibility in pricing the company’s commodities. The company also encourages experimentation when dealing with unpredictable outcomes in the market place. Besides selling products online, the stores use direct distribution channels in delivering goods to clients. The automation of services at the company’s stores has made it easy for the management to segments its market based on consumer’s preference. The segments include price sensitive customers, value conscious shoppers and brand affiliates. Lastly, Wal-Mart stores use a cost efficient greenhouse warehouses in the presenting good to customers.
Business model of Tarket
At Tarket, the management utilizes a merchandising communication technique when advertising their products in the market. In comparison to Wal-Mart’s display, Tarket stores are neat and goods presented in a more enticing manner. The stores resemble a departmental store where goods. Unlike Wal-Mart, Tarket rarely uses cost-cutting strategies in stamping their authority in the market place. Tarket focus on delivering high quality product to customers. The store has the competitive advantage of selling upscale and trendy products. Besides differentiating products for consumers in the marketplace, the organization uses discretionary sales in increasing the profits. The practice differs from Wal-Mart’s strategy of lowering prices to increase sales (Zikmund & Babin, 2013). Tarket has built its reputation as a global brand by supplying goods that meets the needs of young shoppers in the American market. Lastly, the organization engages in philanthropic acts in different parts of the globe besides selling gift cards to trendy shoppers.
Forms of ownership Wal-Mart
A board of 15-members directs operations at Wal-Mart. The board makes decisions on behalf stakeholders who elect the members of the board on annually. Employees and 5% of the owners of the company hold 51% shares at Wal-Mart. Mutual Fund Owners and other institutions own 30% shares at Wal-Mart.
Forms of ownership Tarket
Outsiders have a large stake at the company and they can influence the decision of the management when it comes to expansion of operations. Interestingly, insiders and 5% of the owners hold 0% shares at the company. In contrast to Wal-Mart, mutual fund owners own the majority of the shares. They hold 88% of the company’s shares.
The benefits associated with each model
Wal-Mart’s model
According to Basker (2007), Wal-Mart model is best suited for increasing sales of the company on a short-term basis. The model allows the management to incorporate a combination of strategies in running the operations of the company. Consequently, the approach at Wal-Mart encourages the management to monitor the activities of the company’s competitors. It is also easier to make adjustments at Wal-Mart (Basker, 2007). At Wal-Mart, the management can choose to negotiate with suppliers to reduce the prices of...

Other Papers Like Business Model Comparison

Business E-Commerce Essay

797 words - 4 pages | | 2. Business model | 4 | Very detailed reasoning in supporting the business model comparison. 4 | Sufficient and clear reasoning in supporting the business model comparison. 3 | Sufficient reasoning in supporting the business model comparison while some parts are with ambiguous. 2 | Ambiguous or too brief reasoning in

E-Commerce Essay

843 words - 4 pages | | | | | | | |1 | | |Business model |4 |Very detailed reasoning in supporting |Sufficient and clear reasoning in |Sufficient reasoning in supporting the |Ambiguous or too brief reasoning in| | | | |the business model comparison. |supporting the business model |business

Rakuten Case Study

1503 words - 7 pages not manufacture or store any product, gathers/aggregates data on products from numerous contending suppliers at its website. The firm’s power rests in its aptitude to construct an atmosphere which attracts guests to its website, and in developing a system which permits effortless comparisons of costs and specifications. (BusinessDictionary.com, 2014) When drawing a comparison between Applegate’s definition of a business model against the

Business Model Analysis in the Fast Fashion Industry

4714 words - 19 pages of H&M 10 2.2.1 Vision, mission and objectives 10 2.2.2 Internal analysis 10 2.2.3 Business model canvas 11 2.2.4 Value proposition canvas 12 2.3 Summary of findings 12 4. Comparison of business models between Zara and H&M 12 4.1 Comparison of business models 13 4.2 Comparison of value proposition canvas 14 4.2 Summary of research insights 14 5. Development of a new entrant 15 5.1 Strategic model 15 5.2 Business

Social Security Agency London

1911 words - 8 pages . This comparison with reality would be preferable to comparing to another simulation of reality. Open Box vs Black Box The model is working on a critical aspect of the DOSS operation, namely the salary budget, and it crucial that the model provides accurate results. Thus the process should be “open box” rather than the current “black box”, in which all variables of the model can be assessed critically. This model should consider the quality

Financial Management: Comparing Google’s Business Model/ Financial Management with Microsoft

683 words - 3 pages Microsoft have still remained to be leaders. In this paper, I will show comparison views of Google’s business model and financial management with Microsoft’s launch with Bing. Taking a look into Google and Microsoft core business, leading products and services, management and leadership styles, and innovation track record we will have the opportunity to compare the two businesses in and appendix. Google is known to be the leading internet media

Cloud Computin

1366 words - 6 pages . Though these papers are more focused on fundamental cloud architecture and operability there was no sufficient discussion about the performance matrix and effectiveness of following different cloud model in real time business scenario. Cloud computing is a technological enhancement of the IT infrastructure, referencing to all the discussion on the literature; emerging cloud computing has a huge potential of boosting efficiency, organizational

Paired Comparison Analysis

1265 words - 6 pages analysis (an approach for determining the number and nature of unobserved constructs giving rise to relationships among observed variables). 2. INTRODUCTION Paired comparison analysis is also known as “Paired Choice Analysis”. In modern day terminology, it is more aptly described as a model that is used to obtain weights of objects and comparisons of the extremity of an attitude expressed within statements. It is a decision

Introduction To Research Methods

1011 words - 5 pages Change Management- Barriers |Change Management - Implementation | Competitive Advantage Competitor Analysis | Core Competencies | CSR - Intro | CSR - Issues | CSR - BITC Crisis Management - Intro | Crisis Management - Risk Management |Crisis Management - Planning Ethics - Introduction | Ethics - Issues and Examples | GE Matrix | McKinsey Growth Model | Global Business - Intro | Global Business - Strategy Global Business

E-Business Design Analysis

3809 words - 16 pages Assessment Task 3 -eBusiness Model DesignNoteworthy quotations in context of assignment:"The greatest challenge in e-business is linking emerging technology to a company's new business design" (Kalakota & Robinson 2001)"In the future all companies will be internet companies or no companies" (Andy Grove - Former CEO of Intel Feb 2003)Executive SummaryImagine you are a company with a supreme global brand image, a leader in your industry in

Emerging Markets Overview

664 words - 3 pages characteristics of emerging markets and opportunities and challenges there. -Understanding of finance concepts and strategy of investment in emerging economy. -Realizing differences between developed markets’ business models and business models for emerging markets; being able to transfer existing model to the emerging market business model. As it was already mentioned in this discussion, there are a lot of factors that create difference in strategy

Related Essays

Police Model Comparison Essay

911 words - 4 pages POLICE MODEL COMPARISON PARTICULAR | PHILIPPINES | COLUMBIA | MYANMAR | JAPAN | NEW ZEALAND | OrganizationalName | Philippine National Police(PNP) | National Police of Columbia Policia National | People’s Police force | Law Enforcement in Japan | New Zealand Police | Agency | Department of the Interior and local Government (DILG) | Ministry on National Defense | Ministry of Home Affairs | National Police Agency or NPA | New Zealand

Comparison And Difference Between Johnson And Roys Adaptation Model

727 words - 3 pages IDENTIFICATION DATA: Name: Ruby Age: 42 year Sex: Female IPD No: 1992116 Religion: Hindu Educational Status: BSC Address: Saharanpur Occupation: Housewife Marital status: Married Reason for Consultation: Repetitive acts of washing clothes and checking the washable items Provisional Diagnosis: Obsessive compulsive disorder Differential Diagnosis: Obsessive compulsive disorder GENERAL APPEARANCE: Client possess obese body

The Study Beta Is Found By Statistical Analysis Of Individual, Daily Share Price Returns, In Comparison With The Market's Daily Returns Over Precisely The Same Period. In Their Classic 1972 Study...

553 words - 3 pages stock's beta is 1. A stock with a beta of 1.5 would rise by 15% if the market rose by 10%, and fall by 15% if the market fell by 10%. (For further reading, see Beta: Gauging Price Fluctuations and Beta: Know The Risk.) Beta is found by statistical analysis of individual, daily share price returns, in comparison with the market's daily returns over precisely the same period. In their classic 1972 study titled "The Capital Asset Pricing Model: Some Empir

It Strategy Essay

634 words - 3 pages maintenance models. Then we’ll look at the differences between the two models. Lastly we’ll provide examples of how each model would be used effectively in a project. Project Life Cycles Project lifecycle models are not interchangeable. To deliver a quality system, it's critical to know the risks facing your project and to use a model that reduces those risks (Project Lifecycle Models, n.d.). For most business solution development projects