Will Wal-Mart Stores Inc (NYSE:WMT) Fall to Amazon.com?

Posted by Ryan Mandell September 27, 2013 0 Comment 2766 views

The biggies in the ecommerce game are locking horns and competing with each other like there is no tomorrow. But there are some comparatively small fry that also swim the waters where the big fish like Amazon reign supreme. Wal-Mart Stores, Inc (NYSE:WMT) and Costco are two companies that are pretty small in comparison to Amazon who is truly an Amazon in this space. With other major players like Google and eBay in the ecommerce arena, Wal-Mart Stores, Inc (NYSE:WMT) has definitely been having a tough time with keeping itself afloat.

The plusses

Despite all this, Wal-Mart Stores, Inc (NYSE:WMT) and Costco Wholesale Corporation (NASDAQ:COST) have some things going for them which might just give them a better shot at making an impact on this landscape. Both these companies have very strong local presences and their massive stores are spread right across the United States as well as in countries around the globe. This is a definite plus for them.

On the costs front, Amazon wins hands-down. It does not have to as many locations as Wal-Mart Stores, Inc (NYSE:WMT) or Costco have and thus its infrastructure and employee-related costs are also lower. Amazon is strong on the digital products front and its same-day delivery strategy is a definite winner. Amazon is a generation ahead in terms of the technology it uses in comparison to what Wal-Mart Stores, Inc (NYSE:WMT) has.

Visibility matters

The fact of the matter is that, both Wal-Mart Stores, Inc (NYSE:WMT) and Costco Wholesale Corporation (NASDAQ:COST) will never be able to hold a candle to Amazon. Having said that, the other fact also is that they will continue to be relevant and major players solely due to the fact that consumers will still continue heading for physical stores and that is where the physical presence that Wal-Mart Stores, Inc (NYSE:WMT) has, comes to the fore.

About Ryan Mandell

Ryan Mandell is our senior staff writer covering the White House for Political Report, Ryan also coordinates with the main newsroom news items and contributing write-ups on cultural, social and political activities. Ryan holds an undergraduate degree in journalism, a Doctorate in international relations and a Master Degree in mass communications with an emphasis in print journalism. Ryan also covered the International Society of Social Defense congress in Spain in 2007 and taken part in the Global Forum on economic policies

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