The Internet is becoming more and more important in the growth strategy of brick & mortar companies like Walmart or Target. Indeed, as traditionnal retailing is slow to find a solution to stop the decrease of instore visits, The Ecommerce economy is still growing.
The Internet Retailer Website has noticed that both Walmart and Target have changed their pricing strategy in order to be more aggressive against Amazon. Amazon's size and strength can't be ignore by anyone, and Amazon has already become one of the biggest retailer in the world, which implies a high purchasing power, and the ability to have low operationnal costs.
But Walmart and Target have some arguments to compete online:
- A strong brand
- A size that allows them to have the same kind of purchasing terms than Amazon
- A network allowing multi channel strategies and delivery possibilities to customers.
Now, is it the right approach to fight Amazon on its prices? Of course! How could a discounter like Walmart not be able to have the same prices and even cheaper prices than Amazon's?
Now Amazon still own 2 assests which will be difficult for brick & mortar retailers to own:
- Its high efficiency delivery system
- Its large product range, providing the best choice for customers.
Nevertheless, I believe that Amazon should fear a shrinkage of its market share, as competition will boost their investment online.