Is Wal-Mart Next Amazon? How do Amazon and Wal-Mart compete?


Is Wal-Mart Next Amazon?  How do Amazon and Wal-Mart compete? 


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Amazon (AMZN) passed Wal-Mart (WMT) a few years ago with America's highest market capitalization as retailer. Thanks to its shareholders, Wal-Mart is not a company that easily loses when facing heart problems.


 In fact, through an aggressive e-commerce strategy, Wal-Mart is ready to capture not only a retailer space, but is willing to dominate itself once again on the retail market


What are Wal-Mart's new tricks ?


Wal-Mart's latest Salvo retailer is the best, discount pricing, but gaining the best profit with a grip. It was announced that if customers buy online and choose them in the store, then they can get additional discounts on more than 10,000 products. Pickup discount, like a retailer has said, is saving the shipping costs.


We can remove the cost of final mile delivery (which represent the lion's share of cost to ship the products to customers' homes), we can directly take advantage of our fleet of more than 6,700 trucks. To distribute products directly in our 4,700 stores.


Mark Vore, chairman and CEO of Wal-Mart Americas Ecommerce, said in a statement that this means that the cost of the ship for stores is very low.


At the beginning of this year, their collision with Amazon was accelerated. On the order of more than $ 35, free 2-day shipping on popular items, some Amazon has had great success through its Amazon primary membership program.


How do Amazon and Wal-Mart compete?


Let's go back and see the slow, steady growth of these retail giants.

Wal-Mart was founded by Arkansas in 1962 by Sam Walton, which was committed to bringing one person to America's lowest price and reducing profit in quantity, not high margins. A shop has become two, then 100, and today there are 11,500 retail stores around the world.

The story of Amazon is well-known - Originally started as an e-commerce bookstore in 1994, the site grew in popularity and today sells more than 250 million different products. When Amazon began to diversify away from being an online book seller, he started competing directly with Wal-Mart's general merchandising division.

In 2007, Amazon began to introduce Wal-Mart's business with some of its most popular grocery stores, Amazon Taja Wal-Mart responded by introducing grocery delivery in some markets and starting pick-up.


Wal-Mart started the shipping pass, which offers free three-day shipping for $ 50 per year to compete with Amazon's free two-day shipping program, Amazon Prime.

Where Wal-Mart should compete with Amazon


Online ordering is retail, in which Wal-Mart can easily dominate. Today, 90% of the country lives within Wal-Mart's 15 minutes. When there is a shop that is accessible by so many people, excellent opportunities are created.

After Amazon launched its Amazon fresh grocery business, Wal-Mart has started entering the grocery delivery and pick-up market.

Wal-Mart is already number one grosser in the US and this additional service is a natural extension of its $ 161 billion business segment.

With an existing distribution network in place and a great supply chain management system in its disposal, How has Amazon acquired such a large stock market? The clear answer is the satisfaction on Wal-Mart part.

Wal-Mart needs to ramp up its pick-up and delivery services, yet their pick-up services meet their bread and butter (middle cities and rural areas), while Amazon is focusing on large urban centers.



Once Wal-Mart increases the number of cities, this service will be wildly popular with busy Americans, due to which the second most expensive nature of online grocery shopping is going to be.


Why should Wal-Mart compete against Amazon?



Since so many people live near Wal-Mart and the spoiled grocery stores are already roaming regularly, Wal-Mart can provide fresher products compared to Amazon, a large number of markets  .

pick-up options With, the outstanding balance of the US - which are dependent on cash or who do not participate in traditional banking - will be able to pay cash on the raising, one option is that 9.6 million households are not shopping with Amazon.


With Wal-Mart's reputation of being a terrific place to shop, the delivery service option offers a way to get low prices through shopping on Wal-Mart without buying at Wal-Mart.


 By ordering the market to order online, it is possible to decide that they can sell well, but can not be stocked for fear of being stale, custom order can be online and any Wal-Mart can Can be delayed.


On completion of grocery delivery and pick-up business, Wal-Mart should promote this services aggressively for its non-grocery products.


The ability to order some online and then on the same day in a local Wal-Mart, it can not be transmitted through hundreds of Wal-Mart buyers (or even the car skip!), Amazon Merchant Is enough to convert into .


Where Wal-Mart should not compete with Amazon


Part of Amazon's business strategy is for broker deals between third-party vendors and buyers Wal-Mart should not compete in this domain because it is far from its core business.


While Amazon has already been given the space to print books in the infrastructure already existed in Amazon, because they have been ordered or to work fully with Amazon, Wal-Mart will need to make millions of investments and in that area Will be coming late
Amazon Kindle, Amazon Fire and Accessory Products are also not the areas of business, in which Wal-Mart can easily excel.

A Wal-Mart e-Reader or Wal-Mart cell phone is a product that will already be lost in the abundance of existing options available to Americans.



Finally, web-related services such as video streaming, e-book downloads and other Amazon businesses should be left in Amazon.


The idea of ​​coming to the Wal-Mart video production business prepares the mind and should not be retail giant money or focus.




thanks for the time .

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