Amazon Vs. Walmart And Google: Competitors For Every Vertical

A company that stretches across multiple sectors is bound to have a wide range of competitors, and this is certainly true of Amazon (AMZN). Its core online retail business may be the most well known segment to consumers, but it also has its fingers in cloud storage, video, and consumer electronic devices. Obviously it’s a clear competitor for Wal-Mart Stores (WMT) and other brick-and-mortar retailers, as many analysts have studied the continuing declines in department store sales in concert with Amazon’s sales increases.

However, one firm has now added another competitor to the table. It’s Google (GOOGL), and not because of the cloud storage segment. It has to do with online search.

Amazon takes a bite out of Walmart

Cowen & Company analyst Oliver Chen weighed Walmart’s strengths and weaknesses against Amazon to consider whether it could ever become great again. In order to rise back to the top, he said the big box retailer must change and speed up “innovation in pricing, assortment access, and experience.” If it fails to do these things, he believes it will keep ceding market share to Amazon.

He believes Amazon has made shopping more convenient for customers while also offering a “very compelling array of products and services” which also include Media and Prime offerings. He adds that the online retailer is set for double-digit growth, compared to Walmart’s low-single-digit growth.

Saving time and money

He also suggests that Walmart can leverage the advantages it has in terms of its massive revenue scale, “safe and effective grocery supply chain, merchandising DNA and deep history of focus on the lowest prices and cost.” He believes that the retailer can find ways to offer more convenience for shoppers, combining convenience with the areas it already excels in.

He sees the main principle as helping customers save not only money but also time. He said technology also should play a role in its transformation.

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