Recently, Walmart has decided to start buying small online
retailers so that it can compete with Amazon and display items that you would not
see every day at Walmart. Walmart already have bought Moosejaw, ShoeBuy, and
just added a hipster clothing website, ModCloth, to that list. They wanted to
broaden its audience to appeal to the wealthier consumers as well. The only
issue with this whole process is that not all suppliers want to be involved
with Walmart. Many of the suppliers are not agreeing to their supplier deals
because they do not want to see their products next to Walmart. Because Walmart
is a corporation that is discount-driven, meaning they sell things cheap, they
do not want to downgrade their products. Walmart is standing firm that it will
not be controlling with their new small online businesses even though they may
be tempted to put these companies under their wing.
Page, Paul. "Today's Top Supply Chain and Logistics News From
WSJ." The Wall Street Journal. Dow Jones & Company, 27 Mar. 2017. Web.
27 Mar. 2017.
How does Walmart's current actions stack up with what Amazon already has? I get that Walmart is trying to expand their marketing potential, but what makes Amazon more appealing compared to that of Walmart?
ReplyDeleteWalmart believes that they can extend their company to the online world. Walmart has the money and resources to do this, but Amazon already has a huge head start. Many people find Amazon much more reliable and trustworthy. Walmart lives by it's slogan, "Always Low Prices". People are afraid they are getting a less quality product than what they would get from Amazon.
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