Ecommerce pure play experts like Amazon are leaders and have

Ecommerce pure play experts like Amazon are leaders and have honed this business model which has made them formidable competitors.  Conversely, however, that traditional retailers are competing well with Ecommerce sites of their own.   They also have a very large shopper loyalty base that they can leverage.  Moreover, many have loyalty programs that allow them to target their shopper base to promote on-line as well as in store purchase.

Do you think this advantage will keep some department stores like Target or Wal-Mart in a competitive position to compete with Amazon? Discuss briefly

Solution

It is true that the large retailers like Walmart or Target having ecommerce as well as brick and mortar model have a very large loyalty base. Currently they are giving very tough competition to the purely ecommerce businesses like Amazon.

However, the extensive diversification, excellent service, and quick delivery provided by Amazon makes it a tough competitor in the market. Besides this, customers are getting used to the convenience of buying online products. Currently the company is dominating in the electronics, media, and hard goods. According to a study Amazon would become the leader in the apparel industry. Hence it is concluded that Target or Wal-Mart could not give a strong competition to Amazon.