Wal-Mart is focusing on E-commerce, cloud infrastructure, and entertainment.
Wal-Mart signed a 5 year deal with Microsoft that will make Azure (AWS’s biggest competitor) Walmart’s preferred cloud infrastructure service. Over the next 5 years Wal-Mart will be moving all of their websites and applications to Azure, and they will be working to improve their AI, data management, supply chain management, and machine learning programs. Wal-Mart will also be developing a casheirless store (as a counter to Amazon Go).
Wal-Mart has been focused on E-commerce – acquiring Jet.com, Flipkart, and investing in JD.com. Currently, Wal-Mart is planning to create a video streaming service that would compete with Amazon’s Prime Video. Nearly 60% of US citizens use a streaming service. E-commerce and digital entertainment are a major part of US life, and their presence is still growing. Wal-Mart realizes that having an entertainment source on their website will help draw loyal customers.
Wal-Mart and Amazon are doing everything that they can to grow their businesses. E-commerce sales now represent more than 13% of total retail sales in the US (up from 7% in 2012). Amazon itself is said to account for 5% of total retail sales. E-commerce, entertainment and cloud infrastructure are just a few of the places that they are focused on to try and expand their reach.