Question

In the face of strong competition from Amazon, Walmart's 2016 acquisition of Jet. com was driven by a strategic objective, such as _____.
A. reducing the number of industry key success factors.
B. lengthening its value chain and thereby putting it in a better position to deliver superior value to buyers.
C. expanding its geographic coverage or extending its business into new product categories.
D. facilitating its shift from a low-cost leadership strategy to a focused low-cost strategy.
E. reducing the number of strategic groups in the industry.

Answer 1

Answer:

The correct answer is E. In the face of strong competition from Amazon, Walmart's 2016 acquisition of Jet. com was driven by a strategic objective, such as reducing the number of strategic groups in the industry..

Explanation:

Walmart's purchase of Jet.com was purely and exclusively due to market strategy issues. Given the growth of Amazon, and in view of the digitization of consumption, Walmart decided to remove a medium-sized competitor like Jet.com from the market, that is, incorporating it into its business portfolio and making it a Walmart subsidiary. In this way, Walmart can carry out direct competition with Amazon, trying to prevent it from monopolizing the retail market.