Can Wal-Mart Beat Amazon?

Wal-Mart Stores Inc. (NYSE: WMT) conducted it Investment Community Meeting during the first week of October at which the retail giant’s management outlined the strategic framework of the company to boost the operations.

At present, one of the goals of the retailer is to beat the rapidly growing ecommerce titan Inc. (NASDAQ: AMZN). We assessed if it is possible for Wal-Mart to disrupt the leading ecommerce player’s market share.

During the Investment Community Meeting held on the 6th of October, the President and CEO of Wal-Mart Mr. Doug McMillon outlined 4 important areas in which the retail giant intends to focus on. This is the approach that the company plans to undertake to serve customers effectively and provide the best shopping experience.

The Wal-Mart CEO explained that the company will do everything it can to make people’s daily lives much easier, especially for busy individuals, by improving their shopping experience. In addition, the Mr. McMillon pointed out that the retail giant is planning to operate with discipline, which involves constant attention to detail in terms of expense management. By doing so, Wal-Mart will be one of the most trusted company in the retail industry since this would mean that the company will be able to employ strategies efficiently and deliver good results.

The objective of the CEO of Wal-Mart is to transform the brick-and-mortar retail company into an ecommerce firm. Yet, analysts believe that for Wal-Mart to surpass the top ecommerce company Amazon, it should exert more effort.

Cowen & Co analyst Mr. Oliver Chen noted several steps that the biggest traditional retailer in the world has to perform in order to safeguard its share in the ecommerce market. The Cowen & Co analyst thinks that while boosting online sales is important, Wal-Mart must also tap its key advantages over the ecommerce titan in an effort to compete.

According to Mr. Chen, “Wal-Mart needs to change and accelerate innovation in pricing, assortment access, and experience; otherwise, we believe the company will continue to lose market share to Amazon.”

The brick-and-mortar retail corporation is also set to double the number of its warehouses that are intended for online sales. These warehouses would be operational as the end of this year approaches. Along with this, the retail giant also installed new equipment that are automated for the purpose of sorting the various types of goods and also help in the tracking of the products. Wal-Mart installed this technology in order to compete with the robots of Amazon that are placed in different areas.

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