Amazon and Walmart are two of the leading companies in the retail market. Walmart's success has been the result of innovation in its supply chain which has led to efficiencies in the distribution of their products. The two rivals have engaged in competition as each strives to become the dominant player in the retail industry. Amazon and Walmart's successful strategy is to acquire smaller companies. For Amzon they acquired: Whole Foods, America's largest organic grocery store, Pill Pack, a pharmaceutical company that makes it easier to order and receive life-saving medications, and Ring, to expand into the home security and surveillance business. Walmart acquired Jet.com to grow its e-commerce customer base. They also bought Shoebuy, Bonobos, Moosejaw and Parcel to venture into the beauty and apparel business. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get Original EssayAmazon has made a number of significant mistakes in its bid to become America's number one retail marketplace. Their flagship phone, Amazon Fire, managed to sell less than fifty thousand units worldwide and was forced to stop production due to poor sales. Why Walmart's $3 billion acquisition of Jet.com was overvalued since it was a startup that had only been around for a couple of years. It may not live up to Walmart's ambitious e-commerce expectations. Amazon is highly favored to win in this competition as it has a foothold in the online retail industry while Walmart is transitioning from physical stores to online sales. Amazon is an American electronic commerce and cloud computing company headquartered in Seattle, Washington, which was founded by Jeff Bezos on July 5, 1994. The technology giant is the world's largest Internet retailer in terms of revenue and market capitalization, and the second largest after Alibaba Group in terms of total sales. Amazon is dominating the online retail space with control of a staggering 44% of all e-commerce sales in the United States in 2017. Amazon has created over 1.7 million direct and indirect jobs across the world. In 2017 alone, Amazon directly created more than 130,000 new jobs, not including acquisitions, bringing its global employee base to more than 560,000. In 2017, Amazon shipped more than five billion items with Prime worldwide. Walmart Inc is an American multinational retail corporation that operates a chain of hypermarkets, discount department stores and grocery stores headquartered in Bentonville, Arkansas. The company was founded by Sam Walton in 1962. Walmart has 11,718 stores and clubs in 28 countries. It is the largest company in the world in terms of revenue – more than $500 billion according to the Fortune Global 500 list in 2018 – as well as the largest private employer in the world with 2.3 million employees. It is a publicly traded family business, as the company is controlled by the Walton family. Walmart was the largest grocery retailer in the United States in 2016, and 62.3% of Walmart's sales, or $478.614 billion, came from operations in the United States. In fact, the author of the Walmart effect, Charles Fishman, noted that the company alone accounts for 2% of the U.S. economy. The nature or basis of competitive rivalry; Amazon and Walmart operate in the retail sector. The retail sector has its components. You have clothing and apparel, groceries, electronics, productspharmaceuticals, beauty and fashion. To this end there was intense competition. Walmart has dominated the industry for decades, becoming one of the largest retail companies in the world. They achieved this by establishing an efficient and complex logistics system. With seventy percent of all U.S. goods transported by trucks, Walmart has reduced costs by using its own trucks and trailers to deliver goods from warehouses to stores. This has resulted in low prices for goods sold at Walmart locations. Recently, Amazon has dominated the e-commerce side of retail shopping compared to Walmart. It looks like Amazon has more momentum. Amazon's market share is increasing as more consumers switch to e-commerce. But it also seems like it would be easier for Walmart to expand its business online than for Amazon to expand its presence in physical stores. Key successes of the strategy of each company or group of companies; For Amazon, success was the result of the strategy of not having physical retail stores. The company uses the saved capital to invest in research and development. Innovation in the Logistics Industry Over the past 20 years, Amazon's operational strategy has shifted from an online retailer to a B2B service provider, offering a variety of critical infrastructure as a service to other businesses. The Amazon Prime membership that offers free two-day shipping has been a marketing success. Amazon Prime now has one hundred million subscribers. They leverage technology to expand margins. One example is the use of thousands of robots in warehouses to improve efficiency. Amazon's cloud business, Amazon Web Services, has been the clear growth driver for Amazon in recent years. Now capable of generating nearly $25 billion in revenue over the next 12 months, AWS continues to be the backbone of Amazon's expansion. More than 300,000 U.S.-based small and medium-sized businesses began selling on Amazon in 2017, purchasing an online pharmacy startup called PillPack for $1 billion, which will provide it with pharmacy licenses in nearly every state once the deal closes. 'agreement. That sped up its go-to-market process by years and gave it the opportunity to generate billions in revenue by targeting those who pay cash for their medications before moving into the more complex insurance market. Amazon also bought Ring, a smart doorbell-making system that transmits audio and video to cellphones for about $1 billion. They want to expand into home security and surveillance. It made this acquisition to solve the problem of widespread theft of delivery packages complained about by customers. But many customers are hesitant and wary of a company that has access to their home at all times. Furthermore, data collected via audio and video streaming raises many privacy concerns. While Amazon's advertising business is still small compared to Google and Facebook, which together account for more than half of the digital advertising market, Amazon is on track to become the third-largest advertising player in the United States by 2020. Walmart acquired Jet. com in August. 2016, Shoebuy in January 2017, Moosejaw in February 2017, Modcloth in March 2017, Bonobos in June 2017, and Parcel in September 2017.Jet.com is an online retailer that offers discounted prices on a wide variety of products and its profits are derived from annual subscription fees paid by members. Using algorithms, prices change in real time depending on the combination of products in the customer's cart. Shoebuy, Inc. engages in the online retail sale of footwear, apparel, bags and accessories for women, men and children in the United States..