Companies succeed or fail not based on technology but rather according to their ability to integrate within their value chains.
Walmart’s earning suggest that the company’s online grocery business is doing well, even while Amazon struggles. This is not a surprise, given the two companies points of integration.
Sears has (finally) filed for bankruptcy, thanks to a business model that was obsolete well before the Internet came along. Still, there are lessons to be learned from the Sears businesses that continue to succeed.
Amazon’s acquisition of PillPack makes a lot of sense for both companies, and it’s hard to argue that consumers won’t be the ultimate beneficiaries.
Tech’s two philosophies are also about the difference between platforms and aggregators, but even that has its own divisions. Amazon falls on both sides of the divide. Plus, why Walmart’s Flipkart purchase makes no sense.
Microsoft, eBay, and Tencent are investing in Flipkart: the opportunity is just too big to miss out on, even if Amazon looks ever stronger. It’s the same reason investors are putting more money into Lyft.
Amazon is shutting down Quidsi, and taking the fight for CPG goods to Wal-Mart.
In case I wasn’t clear in yesterday’s article, Walmart really has no chance to catch Amazon in e-commerce. Then, the news that P&G will reduce targeting isn’t a surprise, but it’s not necessarily that much of a problem for Facebook. Plus, notes on Facebook’s earnings.
Walmart wasted years trying to retrofit their model to ecommerce. Buying Jet.com will give them a better chance, but it’s almost certainly too late to compete with Amazon.
More news and follow-up on Didi and Uber, and whether or not Instagram Stories will succeed. Then, Walmart is reportedly buying Jet.com, but Amazon’s earnings show how far they have to go.