- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: So Wal-Marks wants to buy Jet.com...Thoughts?
Posted on 8/5/16 at 6:10 pm to Porker Face
Posted on 8/5/16 at 6:10 pm to Porker Face
quote:
That said, a $3B acquisition of a < 1 year old, unprofitable business doesn't get me going
Company actually started in 2014 but was in private beta for most of that time. Semantics I know considering they started selling products in 2015
1
Posted on 8/5/16 at 9:06 pm to GregYoureMyBoyBlue
I interviewed with Wal Mart ecommerce and they are aggressively pursuing expansion in that area. They have moved part of the operation to Texas to cut costs and are looking into ramping up training for a MAJOR online expansion.
Posted on 8/5/16 at 9:15 pm to Porker Face
quote:
Walmart is the #1 company in the Fortune 500. They don't need, value, or respect your opinion on branding
That may be, and with your razorback pic I imagine you're a giant homer but no offense to anyone who shops there but I personally would never be caught dead in one. I do all my business shopping at SAMs which walmart owns but thats for work. Walmart has this god awful stigma of being a place for poor people,food stamp recipients, and just overall lower class society.For Gods sake have you ever seen the website "people of walmart" lol its a joke about walmart shoppers and how disgusting of a human being they are. Costco doesn't have that stigma, and Amazon certainly doesn't have that stigma. Walmart sells organic fruits but you're never gonna catch a whole foods shopper there and Walmart is not ever going to succeed in taking a large number of prime users away. Now market share can be taken away from Amazon in the sense that you get these lower income, lesser educated walmart customers who never shopped online in the past to begin shopping online, but who knows if these guys even have credit cards to make online purchases with?
All I know is its nice to see some competition emerging to amazons monopoly but prime is so far ahead its ridiculous. Their $100/yr fee includes tv,music, and free shipping. How is walmart gonna compete there? They dont have tv and music yet and it would be a while before they did and I can't even begin to fathom the programming if walmart ever decides to produce tv shows like amazon, im picturing like a real life king of the hill being their smash hit.
This post was edited on 8/5/16 at 9:21 pm
Posted on 8/5/16 at 10:55 pm to dabigfella
I do live in NWA, although I don't have any affiliation with Walmart or the Vendorville community. I certainly do have friends at WMT and Sam's.
Many observers don't seem to have a firm grasp on WMT and their fundamental business
The people you think of as their "stigma" is recognized in their financial statements as "revenue". They are an extremely loyal, repeat customer who spends their entire check at the Supercenter every week. This segment isn't going to start shopping at Amazon, or online for that matter. They will be the last ones to transition to e-commerce, just as they are last to do literally everything else. This customer is one of Walmart's "wide moats". This is a large and profitable base from which to build. Amazon has 0% of this business.
Does WMT want more affluent suburban types...absolutely. Every business wants this customer. Whoever finds out how to capture that customer (if they can be captured) will be a billionaire many times over.
What makes WMT successful is their logistics. Much of today's logistics model was pioneered by Walmart. No one runs a more smooth operation than a Walmart DC. They are ahead of everybody. WMT could not exist today without the breakthroughs they came up with in logistics. Combine their existing DC infrastructure with one of the largest private trucking fleets in the world, and 10,000 stores and you have WMTs second wide moat.
Do grocery, pickup, and delivery throw a wrench in their traditional DC model? Of course. But everyone is wrestling with this right now
Logistics is how they keep their prices so low, which enables volume. The volume itself also keeps prices low. Buyers at Walmart can bully any supplier into anything they want. They literally dictate market prices for new products by the sheer volume of their first order in some cases.
Example 1: LED lights have proliferated because Walmart decided to switch to 100% LED in international stores a few years ago. The size of their order was so large, it literally bent the cost curve low enough to make the investments' break even price justifiable to management. Now LEDs are so cheap they are implementing 100% in Walmart US. Oh and all other big box are switching to LEDs.
Example 2: Walmart also "invented" the "pint" urinal because water was so expensive in some of their stores. They said they would order thousands from any company who could build a pint urinal because it would have a payback period of 2 years. Amazon can sell all the TV shows they want, they don't have this clout.
There my $0.02
Many observers don't seem to have a firm grasp on WMT and their fundamental business
The people you think of as their "stigma" is recognized in their financial statements as "revenue". They are an extremely loyal, repeat customer who spends their entire check at the Supercenter every week. This segment isn't going to start shopping at Amazon, or online for that matter. They will be the last ones to transition to e-commerce, just as they are last to do literally everything else. This customer is one of Walmart's "wide moats". This is a large and profitable base from which to build. Amazon has 0% of this business.
Does WMT want more affluent suburban types...absolutely. Every business wants this customer. Whoever finds out how to capture that customer (if they can be captured) will be a billionaire many times over.
What makes WMT successful is their logistics. Much of today's logistics model was pioneered by Walmart. No one runs a more smooth operation than a Walmart DC. They are ahead of everybody. WMT could not exist today without the breakthroughs they came up with in logistics. Combine their existing DC infrastructure with one of the largest private trucking fleets in the world, and 10,000 stores and you have WMTs second wide moat.
Do grocery, pickup, and delivery throw a wrench in their traditional DC model? Of course. But everyone is wrestling with this right now
Logistics is how they keep their prices so low, which enables volume. The volume itself also keeps prices low. Buyers at Walmart can bully any supplier into anything they want. They literally dictate market prices for new products by the sheer volume of their first order in some cases.
Example 1: LED lights have proliferated because Walmart decided to switch to 100% LED in international stores a few years ago. The size of their order was so large, it literally bent the cost curve low enough to make the investments' break even price justifiable to management. Now LEDs are so cheap they are implementing 100% in Walmart US. Oh and all other big box are switching to LEDs.
Example 2: Walmart also "invented" the "pint" urinal because water was so expensive in some of their stores. They said they would order thousands from any company who could build a pint urinal because it would have a payback period of 2 years. Amazon can sell all the TV shows they want, they don't have this clout.
There my $0.02
Posted on 8/6/16 at 9:04 am to TheChosenOne
Not sure why people think Amazon should be trying to develop a large B&M infrastructure.
Bill Gates "literally" created the usable computer OS but I wouldn't want him in charge of coding future OS.
Walmart's logistics haven't kept up with the time and it is very clear they are responding to Amazon's cutting edge logistics.
quote:
You seem pretty high on Amazon beating the company that literally created logistics
Bill Gates "literally" created the usable computer OS but I wouldn't want him in charge of coding future OS.
Walmart's logistics haven't kept up with the time and it is very clear they are responding to Amazon's cutting edge logistics.
Posted on 8/6/16 at 4:32 pm to GenesChin
quote:
Bill Gates "literally" created the usable computer OS but I wouldn't want him in charge of coding future OS.
That's a person. This a company of 2,100,000 people
quote:
Walmart's logistics haven't kept up with the time and it is very clear they are responding to Amazon's cutting edge logistics.
Explain? That isn't "clear" to me.
If Amazon had Walmart's brick and mortar scale they would collapse in a day. Walmart's e-commerce shortcomings arent related to logistics
Page 2 of 2
Popular
Back to top
Follow TigerDroppings for LSU Football News