Why the Google-Walmart Collaboration Matters


Reference: https://mobile.nytimes.com/2017/08/23/technology/google-walmart-e-commerce-partnership.amp.html


A  few days ago, I wrote about the fact that what makes Amazon so difficult to compete with is that you aren’t really competing against just one company. You are competing against a cut throat retailer and also against a technology platform that seems to be about the best in the world, and one of the cheapest.

Walmart (WMT) and Google ( GOOGL) today announced that Walmart would begin offering products on Google Express, the company’s online shopping mall. The plan also sees Google Home, the company’s digital voice assistant similar to Amazon’s Alexa, being able to take orders for Walmart products.

In this scenario, we have a technology giant linking up with a retail giant to compete with Amazon. While it is certainly way too early to tell if anything will come of this, it shows that the business world realizes that to take market share from Amazon, it will take more than one company’s resources. I don’t know much about the Technology aspect of it all, but it would seem reasonable to conclude that, eventually, if you are on Amazon’s Web Services platform, you wouldn’t be able to sell through the Google – Walmart collaboration.

Perhaps there is a third partner that comes along, such as Microsoft (MSFT) with their Azure platform that is supposed to be competitive with Amazon Web Service. Or maybe, Oracle ( ORCL).

I am sure that we will learn more about this deal in the next few days but it does set a prototype for other companies to consider when contemplating their own fate with Amazon. I’d expect to hear similar strategies from Target (TGT), Kohl’s (KSS), JC Penney (JCP), etc.

DISCLOSURE: This article is for informational purposes only and is based on my own personal experiences. It is not intended as investment advice and should not be relied upon as such. It is not a recommendation to buy or sell any securities listed. Please consult a qualified advisor to determine the best investment plan for you.