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Wednesday, December 6, 2017

What does Wal-Mart's change to Walmart Signify about Future Strategies?

January 1st Wal-Mart will be rename Walmart in order to accept its move into e-commerce. The company has been beat out by Amazon and the desire of people to price compare and purchase online. Walmart has been seeking ways of ensuring its low cost dominance over the past few years. Walmart has a few things going for it that many other companies don't.

1.) Its distribution system is one of the best in the world. If it decided to it could purchase a fleet of smaller trucks at each of its stores and start delivering. This doesn't seem to be in their plans but moving to more distribution focus makes sense considering it is one of their greatest advantages.

2.) Its purchasing power allows it to buy products at a cheaper price than anyone else. Amazon is made up of smaller providers and use the system as a marketspace. However, Amazon is starting to purchase hot selling items on its own. Walmart will need to compete in this arena.

3.) It has acquisitioned Jet.com and improvements in that system are likely. Not sure if they will be hosting sales of non Walmart items but improving its eCommerce strategy includes reaching more customers through the Amazon competitor.

4.) Physical locations offer an opportunity for people to return products and see them first hand. Amazon doesn't already have a physical presence so Walmart can use its Click-n-Mortar hybrid approach to gain customers online and offline. Many of us still grocery shop and need items today which makes it more convenient. Few like shipping items back on Amazon.

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