Sunday, May 14, 2017

Wal-Mart Seeks to Conglomerate Itself to Become Amazon - Science

Wal-Mart Stores, the 800-pound gorilla of retail, is running hard to catch up in an increasingly crucial segment where it is neither the biggest nor the best: e-commerce.

The company, founded in 1962 by Sam Walton, has been gobbling up smaller and niche players in e-commerce in an effort to reach online shopping market leader Amazon.

Whether those efforts are paying off will be a focal point when Wal-Mart Stores reports quarterly earnings on Thursday.

A bit more than half of all funds spent online in the United States now goes to Amazon, according to the bank Macquarie.  Wal-Mart pushing hard to catch Amazon in e-commerce

800-pound gorilla?  Really, PO?  Why don't your murder people who throw such cliche?  Let's take the initiative for the team and eliminate cliche on go forward basis.  Run that up the flagpole to ensure we're all seeing the same side of the elephant.  Remember, we just need to stick to our knitting.

(starts puking)

Wal-Mart shows us an applied example of the Law of Evolutionary Potential in their stated desire to catch Amazon but has only shown their inability to do it.  Generally, the Wal-Mart approach has been to acquire various novel types of companies to give itself some kind of color beyond being the company which is known for slave labor imports.

The Rockhouse Hare-Brained Theory on the matter is Amazon was designed from the floor to make a supply chain which works like Elon Musk's HyperLoop at 700 mph or better and that's specifically for individual distribution.

However, Wal-Mart's supply chain is built around loading big rig trucks to dispatch them to wherever with large quantities of supplies rather than individual pieces.

The RHB Theory is it will be inordinately difficult for Wal-Mart to convert its existing supply chain and therefore it will be constrained by its own earlier success, much like the American rail system which is frozen in the 19th Century.

The other option for Wal-Mart is to go full tilt for all the overhead possible and build a supply system similar to that of Amazon but that's a loser before it even starts because Amazon is so far ahead and they're smarter and they're rich.

Ed:  how do you know they're smarter?

They thought of it first.  I rest my case.

Wal-Mart not only has to catch up with Amazon, they have to evolve faster and we don't believe they have the capability.  At best they will come out of this also-rans in online retail.

Ed:  why don't you believe they have the capability?

If they did they would already have built it.

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