Value Curve Tool of Amazon and Wal-Mart and Value Innovation Brainstorm of Amazon (Coursework Sample)

Value Curve Tool and Value Innovation Brainstorm

Student’s Name

Institutional Affiliation

Course

Professor

Date

Value Curve Tool and Value Innovation Brainstorm

Part A: Value Curve Model

Figure 1: Amazon Vs. Walmart Value Curve

Face-to-Face Interactions with Customers

              Amazon’s e-commerce model performs lower than Walmart’s Brick-and-mortar model based on face-to-face interactions with customers. The e-commerce face-to-face interaction performance is 3 while the brick-and-mortar model’s face-to-face interaction score is 8, see figure 1. Amazon rarely meets with its customers physically because customers mainly order products online and the company delivers to them using a third-party delivery service. However, Walmart meets with its customers on the shopping floor. The physical interaction strengthens the relationship between the firm and its customers, which creates a foundation for attracting loyal customers (Valueprop, 2018). Walmart finds it easier to convince customers through face-to-face communication. Amazon interacts with its customers through online chatting to establish strong relationships despite the low physical interactions. Amazon’s virtual team interacts with customers to guide them to resolve issues when purchasing products online (Amazon, 2021). Therefore, virtual communication that Amazon applies is weaker than face-to-face communication that Walmart applies when interacting with customers.

Convenience

              E-commerce is more convenient than the brick-and-mortar model for customers. The e-commerce market convenience score is 9 while the brick-and-mortar’s model convenience is 6, see figure 1 above. The model allows customers to compare products’ prices and select their most suitable products from e-commerce platforms regardless of their location and at any time (Johansson, 2021). Customers save the time and cost used to visit physical stores because e-commerce platforms allow them to order and purchase products while at home. In the brick-and-mortar model, customers have to visit stores to view and purchase preferred products, which makes them incur costs and waste time (Johansson, 2021). Amazon as e-commerce allows customers to view, purchase, and order products on its website worldwide, which creates business value. However, Walmart’s brick-and-mortar model inconveniences customers because they cannot access products at any time and at all global parts, which reduces the company’s business value. Indeed, Amazon’s e-commerce model is more convenient than Walmart’s brick-and-mortar model.

Product Variety

              E-commerce provides a wider product variety than the brick-and-mortar model. The e-commerce product variety score on the graph is 8 while the brick-and-mortar business product variety score is 6, see figure 1 above. E-commerce supports a wider product variety because it allows customers to access goods from various international markets. The geographical barrier absence in the e-commerce business model helps customers to access products from different global parts (Pillemer, 2020). Amazon supplies customers with a wide product variety to satisfy their needs. Amazon only introduces new products on its website and immediately gets customer feedback. In the brick-and-mortar model, the cost of introducing new products into the market is higher than the e-commerce business model,