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Overview:
Comparing the Internet tech Goliath Amazon (AMZN) to the retail mega store Wal-Mart (WMT) can be a more difficult event than otherwise perceived. The two companies are not so much an "apples and oranges" comparison, although Amazon would ship your oranges and Wal-Mart would require physical shopping at their location. Lately, Amazon and Wal-Mart are attempting to close the gap between physically shopping at a location and internet shopping through a push into each other's territory. In the future I see an expansion into each other's area of expertise although both companies will retain their original business model. This attempt will be a key factor in determining the success of each company and, in turn, how shoppers will choose to purchase items. Fulfillment centers are an advancement to increase customer satisfaction, and in some cases profits, that reveals an interesting set of details in the case of the two corporations taking part in the battle.
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Quick synopsis
Results so far for Wal-Mart according to Neil Ashe
- shorter ship times than Amazon
- 35 stores taking part
- 2600 distribution centers compare to 100
Ideas for AmazonExpansion into a corporate based flea market before eBay beats them to itConclusions:
- Wal-mart is better buy
- The battle between the two demonstrates that it is much harder to make up physical ground than non-physical ground.
Retail stores become shipping hubs to battle Amazon
Oct 6 USA Today
Ship from Store' strategy saves money through shorter delivery routes.