They've had 5 yrs of ownership of Flipkart which has e-commerce, retail, travel booking, payments and many other businesses in the umbrella. They bought jet.com too, why is their progress so slow?
The problem is Walmart leadership, believes more in offline and does not want to spend much on in-house tech. So, tech wise they are very bad. These companies would have been acquired to just stay in tech game someway.
Not true. Walmart invest heavily on technology !!!!
I left Walmart for this reason
It’s not easy to make money of e-commerce shipping and returns cost a lot of money and resources. Also, for Walmart scaling up the e-commerce business also means cannibalizing some of their in store sales. So, they may be deliberately keeping a low profile on e-commerce. Also, wonder if FK is really doing that great the customer experience and product selection on Amazon india is miles ahead of Flipkart.
This is a market maturity question. Amazon has very high penetration across the US in the most profitable geographies with general merchandise skus with larger margins. Walmart must compete against that with lower margin skus that travel further to less dense geographies. Can it beat Amazon? Yes, eventually. In India to my knowledge, Flipkart is a primary player. While “first mover advantage” is almost never realized, if you own the market share you become the resource.
They don’t need to compete, they are probably fine with the Walmart/Amazon duopoly.
If that were the case they would not have acquired these Companies