Can Amazon be out Amazoned? The short answer? Probably not. I say probably because business history is littered with industry leaders that hit their zenith and then for one reason or another plummeted back down to Earth and disappeared from existence (e.g: A&P at one point was the largest food/grocery retailer in the United States). But is Amazon's culture like that of those fallen behemoths? Marc Lore learned that may not be the case when his former business, Quidsi (aka diapers.com) expanded product categories in an attempt to go head-to-head with Amazon annnnd..got bought by Amazon. In his second act with Jet.com Lore opted for the enemy of his enemy in Walmart. The problem? Walmart faces an existential crisis not unlike that of industry leaders in business history like the Penn Central Railroad. Too many stores in places people aren't shopping at (or too many roads where people aren't riding) while customer flock to new methods of shopping (or taking the car instead of the train). What ties the two is how they do (or didn't) jump the shark long enough to land on the other side without significantly cannibalizing their existing business, continuing to drive share-owner returns at the same levels AND ensuring that once they get to the other side of the shark that the new business is still delivering at the same levels that the old, primary business used. In the link in the attached article Keith Anderson calls out a key fundamental step that Walmart took in acquiring Jet.com to help them to jump the shark. He also calls out that there is more to it then just shifting Walmarts Customers on-line to be a viable (second) option to Amazon. It's about delivery, service and continually reinvesting in the evolving the business. Something that is innate to the Amazon culture. Case in point; while Lore looks to unbundle purchasing options for Walmart less then a month later Amazon responded by quietly reintroducing free shipping on orders of $35 from the $50 it had been. Another part of Amazon's culture that Walmart may not get just by buying more ecommerce companies (http://www.denverpost.com/2017/02/15/walmart-buys-outdoor-gear-moosejaw/) is how they define their business. Amazon, through its actions, doesn't fit squarely as a retailer, ecommerce or omnichannel company because of its other business interests in cloud computing that make it more of a competitor to Microsoft and IBM then Walmart. Or take Amazon's push into delivery (http://www.bizjournals.com/washington/news/2017/02/28/amazon-now-delivering-dinner-to-d-c-from-dozens-of.html?ana=e_me_set1&s=newsletter&ed=2017-02-28&u=sAmE2YeVGI6C34B70ph%2FuJp4Bee&t=1488287744&j=77509811) which would take it even further away from being a Walmart competitor and more in-line with UPS or FedEx. Which then begs the question is comparing Walmart to Amazon fair? Somewhat like comparing The Coca-Cola Company to PepsiCo. Sure both companies sell beverages but that's where the similarities end. Unlike Coca-Cola PepsiCo also has a snacks division in Texas (Frito-Lay) and a Nutrition group (Quaker) out of Chicago. If Walmart is trying to out Amazon Amazon then does it then need to rethink its proposition and start extending itself into these other businesses or does it follow the philosophy of Coke and maintain itself as a pure-play retailer with omnichannel options. And if it has decided on the later then the answer to the question that I started with is a solid no because fundamentally at the heart of Walmart it has a different premise and in turn a different business evolution trajectory then that of Amazon.
A&P lasted 156 years. The Penn Central Railroad lasted 8 years. With the dot-com age the speed of rise & fall has been accelerated even more. Only time will tell if Walmart is able to inculcate their culture to evolve the business and avoid being another casualty of the Amazon express.
http://www.chainstoreage.com/article/walmarts-latest-e-commerce-moves-what-can-it-really-deliver?tp=i-H55-Q5S-2qk-4WPNO-1u-14Qs-1c-eNU-4WJQH-15ii4M&utm_campaign=Daily&utm_source=Experian&utm_medium=email&cid=10958&mid=66829390
http://www.chainstoreage.com/article/amazon-ups-ante-free-shipping-race?tp=i-H55-Q5S-2qk-4WPNO-1u-14Qs-1c-eNL-4WJQH-1oJSSG&utm_campaign=Daily&utm_source=Experian&utm_medium=email&cid=10958&mid=66829390
Back in the day Amazon used to sell books but it also had a strategic approach to broaden it's portfolio. That was to establish a seemingly non-hostile relationship with brick & mortar retailers like Toys 'R Us (see bankruptcy), Borders Books..etc. The goal? To get in front of the customer interaction. Amazon sold itself as an expert in the digital space and allowed for cost efficiencies (i.e: not having to build out a web-site or deal with the head-ache of how to fulfill product or the logistics on from where) from the brick and mortar company to focus on what it did best (selling in a physical store) while letting Amazon manage it's digital footprint which was a low volume mix relative to the traffic that was walking into the brick & mortar stores on a daily basis. But, as we all know now, by insinuating itself in the path to purchase and putting its brand in-between the customer and the brick & mortar brand Amazon was able to create a wedge that has grown
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