Smart strategy: Wal-Mart competes with Amazon

A typical Wal-Mart discount department store i...
Image via Wikipedia

Wal-Mart has just stepped up to create a compelling online offer that should rival sites like Amazon.

Traditionally, Wal-Mart’s business model has been to sell its inventory and it makes huge profit through excellence and innovation in supply chain management.

Amazon, on the other hand, has a business model of selling other people’s inventory and it makes huge profit by acting as a portal and taking a portion of the revenue.

Both are good models. Recently, Wal-Mart has adopted Amazon’s business model for its online stores. That is, suppliers whose wares are not necessarily offered in Wal-Mart can be sold on with Wal-Mart taking a share of the revenue.

This is a great step for the mega-retailer. Really, there were few companies that could compete with Amazon (the Wall Street Journal suggests that ebay is one of them) in this space but Walmart can do it. They have the web traffic (and it’s easy for them to get more web traffic through instore promotions, flyers, etc… everything they already do anyway).

It’s also a good step because it’s easy to implement. Many smaller suppliers who aren’t able to get into Wal-Mart just might be able to get onto their website which will generate more traffic. But Wal-Mart doesn’t really have to do anything other than supply the technology.

I can see other options, too, such as in-store kiosks where users can buy products that they can’t find in the store; there are also cross-promotion opportunities that Amazon doesn’t have, likepotentially having the products shipped to your local store so you can pick them up on your next trip.

Snapshot of my week: Aug. 31 – Sept 4

Here’s a quick look at what I’m doing this week:

  • Creating sales-supporting documentation and a media kit for an e-commerce company
  • Writing blogs for a business consulting site
  • Writing blogs for a professional coaching site
  • Writing blogs for an online marketing site
  • Writing blogs for a freelancing site
  • Writing blogs for a business bookkeeping site
  • Writing blogs for a business consultant’s site
  • Writing an internal customer service memo for an autobody company
  • Resolving a problem with a client’s blog where the images are correctly loaded onto the server but not showing up on their blog
  • Completing an e-course about management
  • Writing a series of newsletters for a business consultant
  • Completing an ebook about Forex investing
  • Creating content for a Forex investing company
  • Creating content for a Futures platform company
  • Working on a series of social media integration projects for a client
  • Assisting a real estate client with an internet radio show website they’re developing
  • Doing some initial research and planning for a real estate whitepaper