How Amazon & Walmart's Rivalry Is Shaping New Services
technology

How Amazon And Walmart's Rivalry Is Shaping New Services

The clash of retail giants.

https://dk2dyle8k4h9a.cloudfront.net/How Amazon And Walmart\'s Rivalry Is Shaping New Services

One of the biggest multinational retail corporations, Walmart, is trying every trick to compete with Amazon, the e-commerce, and cloud computing company.

Walmart has rightly realized the massive potential of retail in the coming years and to tap such a remarkable opportunity, the company is collaborating with other top players of the same landscape, and you need to be on the edge when competing with technology’s most dominant players.

The battle between the two giants has shifted way beyond the conventional retail business and has reached to the tech sphere. Working on the same lines, Walmart struck a five-year deal with Microsoft on AI (Artificial Intelligence) projects and shifted its full cloud operations to the Microsoft Azure and Office 365.

The handshake between these companies may result in the introduction of a cashier-less, and brick-and-mortar retail store, which will be in direct competition to Amazon Go. For this purpose, Walmart has maintained two tech incubators in California and Texas respectively for experimenting all its new ventures.

 

A couple of years ago, Walmart purchased Jet.com to consolidate its presence in the retail market. To stay in the race, the retail company made a few more deals like the partnership with Alphabet’s Waymo for the transportation of the customers, then with Uber, Lyft, and Postmates for grocery delivery and Rakuten for Kobo e-readers.

Not only this, the retail corporation is planning to take on Amazon Prime Video with its Vudu subsidiary by the end of the year.

Here, one thing is obvious, Walmart is desperate to match Amazon’s revenue model and success. Both the companies have their primary say in the retail market, but they are aggressively looking into other prospects also like on-demand delivery and cashier-less stores.

On the other hand, Amazon is fast catching up with all the retail marketing trends and to counter other giants; Jeff Bezos company acquired Whole Foods, a supermarket supply chain that specializes in selling organic products. The e-commerce company has strapped it with Prime service that will help in delivering goods to far away places.

Robert Hetu, Research Director of the Gartner Retail Industry Services, says,

If we look at the financial numbers, Amazon comfortably outruns Walmart. Don’t get fooled by the staggering revenue Walmart generates, which is $500 billion in annual sales. These numbers agreeably make it the top corporation in the US, in terms of yearly revenue earnings.

But the difference lies in the razor-thin margins compared to the operational costs, which is apparently enormous. Considering the employee strength, Walmart single-handedly employs more than 2 million people worldwide, and 1.4 million of them are in the US alone. Due to these facts, investors consider former company worth to be the quarter of Amazon’s $1 trillion market valuation.

So, it makes sense when we see Walmart fiercely competing. According to Hetu, the company which will better analyze and understand the human behavior will outshine the other. Also, the grocery and retail battles are just the beginning, both the companies will undoubtedly look to take it forward.

You may also like:

Firefox Shares Prototype For Its New Logo
Biggest Advantages Of Cloud Backup
Amazon Might Be Putting Your Privacy At Risk

MAD Team
Written By
MAD Team

MobileAppDaily host a team of experienced technical writers, industry wizards, and app experts who have an exact knack of content that caters to the needs of the mobile app targeted audience. We strive to bring you the best of tech!

Top Companies

InMobi
Singapore
Dot Com Infoway
New York, USA
M&C Saatchi Mobile
New York City, USA
Techmagnate
New Delhi, India
Fetch
London, UK
View full report

Latest Articles

Join our global community 135K Followers
technology

GIMP Photo Editor: Fine-Tune Your Images Like Never Before

MAD Team 2 min read  

The craze that started with Adobe Photoshop has now reached to GIMP- GNU Image Manipulation Program. The image editor is more impressive than its counterparts in the similar series. Before I start previewing GIMP, the popular open-source photo editor features, here are the pros and the cons of this

technology

Apple May Introduce Cheap iPad Model With Apple Pencil Support

MAD Team 4 min read  

Apple announced a press conference next week that will be held in Chicago. According to the rumors, the company may announce its new cheaper iPad model at the conference. However there is no confirmation yet by Apple but Ming-Chi Kuo, the KGI analyst has leaked the information.The conference has

technology

Know All About A Leak Revealing Apple's New Design Concept

MAD Team 4 min read  

Apple has started the warm-up for WWDC 2018 and there is a sudden reveal on iOS 12 for the public. The leak suggests the production of some parts needed for 2018’s iPhone handset launch is underway. As per the official news, “Apple Inc. manufacturing partner Taiwan Semiconductor Manufact

technology

Android Messages Update Comes With Duo Calling And Other Upgrades

MAD Team 4 min read  

Google is updating the Android Messages and integrating more useful options to it. The upgrade from V 2.5 to v 2.7 is taking things slightly higher than what we expected from the Messaging app. With the upgrade, the Android Messages will get a Duo calling option, smaller APK, message indicator and R