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Amazon vs Walmart: The battle for everything


NickButera

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Anyone else taking notice of how these two companies are gunning for eachother? Both are trying to head to the same spot from two entirely different directions. Amazon has a stronghold online but is taking a long time trying to crack brick and mortar, Walmart is the exact opposite, trying desperately to get into the projected 4-6 trillion+ e-commerce market by 2020. 

  • Walmart:
    • Bought Jet.com-the largest e-commerce acquisition ever, Bonobos, Hayneedle-the 2nd largest online furniture company, Shoebuy.com,  ModCloth,and Moosejaw. All higher end e-commerce companies that have a foothold in their respective industries. They're also gunning hard for the online grocery market that's starting to bloom, using their already established largest grocery distribution network. 
  • Amazon:
    • Bought Whole Foods to break into the brick and mortar way, created a check-out less brick and mortar based store (walk int, grab your stuff, walk out, technology charges you based on what you took), opening physical book stores, 
  • Both companies are being extraordinarily creating in attempting to solve last-mile delivery, the largest financial hurdle for online companies. Amazon creating their own transportation company and experimenting with an uber-style delivery service. Walmart using their existing brick and mortar infrastructure, offering steep in-store pick up discounts and using their existing employees to deliver last mile to homes instead of major post services. Both companies have experimented with drone deliveries. 

https://www.nytimes.com/2017/06/16/upshot/the-amazon-walmart-showdown-that-explains-the-modern-economy.html

http://www.foxbusiness.com/features/2017/06/16/amazon-vs-walmart-grocery-wars.html

https://www.recode.net/2017/3/30/14831602/amazon-walmart-cpg-grocery-price-war

 

So, who wins and why? My forecast? The e-commerce market is so huge, there's room enough for two mega-conglomerates. Amazon will always be ahead in technology services, while Walmart will always be ahead in grocery markets, brick and mortar or online. But they both close the gap on eachother considerably. By 2025, they are the leaders in almost every retail xD What surprises me the most, is that Walmart and Jet are actively buying companies that have established footholds and brand relationships in hard to crack markets. Where as Amazon seems to not care as much about owning companies, but rather distribution and selling others' items. 

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I almost feel like Amazon is getting TOO diversified. They announced that they're going heads up against Blue Apron with a food delivery service, there was a beta build for an Amazon "find a property" which speculates that they're going after services like Zillow.com or possibly going after Airbnb (or possibly both, to be honest). 

This being said, they're balancing the diversity pretty well. As we start getting more and more acclimated to smart devices and the "Internet of Things" start to get more integrated into our daily lives, the more Amazon will pull away. 

Wal Mart needs to create their own Siri/Cortana/Alexa to get into this game. If they do, they're in this fight in a big way.

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42 minutes ago, EliteTexan80 said:

Wal Mart needs to create their own Siri/Cortana/Alexa to get into this game. If they do, they're in this fight in a big way.

Or they could like.... just give up. Crawl off into a hole somewhere and die. That would be nice.

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I think honestly both will just continue to out do one another in their own respective markets, Amazon online, Walmart in person. Brand (store) recognition in this case is a powerful thing and people don't like change.

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Neither are going to "win" per se.  They're both huge entities that aren't going away for a long time.

If you ask me who i'm rooting for though - my bank account would show it pretty clearly.  Amazon.  I buy all sorts of stuff from them, and if they ever figure out how to do 2 hr deliveries country wide (instead of just large cities) they'll get even more of my business.  I use them to price check everything i'm thinking about buying in stores, and their product review system is top notch.

I football Amazon.

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5 hours ago, Danger said:

Brand (store) recognition in this case is a powerful thing and people don't like change.

Very true. One of my coworkers read an article about Whole Foods being purchased by Amazon while on break, then grumbled, "Great, now I can never shop at Whole Foods" again. Apparently she hates Amazon cause some stupid reason and is now including WF in the hategroup.

So sometimes name recognition is bad, I actually kinda feel the same way about Wal Mart.

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