Amazon and Google are two of the companies that strike fear into the hearts of startups and their investors. You come up with a new idea and hope these guys don’t come into your market and decimate you before you gain traction. These two companies make so much money in their core businesses, they can afford to effectively “dump” their new products on the market and put others out of business.
It’s why it’s a touch ironic that the company that was considered the bricks and mortar monopoly crushing small business is the new counterbalance to Amazon and Google.
With the acquisition of Jet, Walmart showed how serious they are about the online business. As we’ve had to explain to our well-off friends, Walmart bought Jet because their wives won’t shop at Walmart.com.
Perhaps though, the image of this major retailer once tied to low-income consumers might be about to change. At least online.
You see Walmart has released meal kits, farm crates and specialty boxes and from the looks of it, they are premium products at reasonable prices.
Meal kits include Argentinian Empanadas & Sofrito Meal kit dinner for two at $35. There is also a Jerky/Superfoods box for $29.99.
Bottom line: Startups will still have it rough because they now have to worry about Walmart, Google and Amazon but as Walmart becomes more digitally savvy, they could exert pressure on the core business of Amazon and Google – forcing them to focus more on business retention than expansion.
We’ll see how it plays out but as usual, predicting who will disrupt who is as challenging as ever.
Finally, Google and Amazon are huge targets as they have market power commensurate with monopoly players. Walmart may be the savior they need to protect themselves from government lawsuits or breakups.
We’ll see how it plays out.