Greg's Corner

Walmart to take on Amazon’s core business

It’s been no secret that Amazon and Walmart have been at odds with each other recently with both retail giants trying to infringe on each other’s territory. Amazon has been expanding into the brick and mortar space while Walmart is trying to increase its online presence. Now, Walmart is trying to steal a part of Amazon’s customer base by launching their own line of what started Amazon’s success in the first place, books.

Walmart has teamed with Japanese company Rakuten to start selling e-books and readers to compete with Amazon’s massive library of e-books available on their wildly successful Kindle e-reader. Does Walmart really expect to take a chunk out of Amazon’s book business? Barnes & Noble tried to take on Amazon with their Nook reader which was superior to the Kindle. While not exactly a failure it didn’t have nearly the success that the Kindle has. Also, with all due respect to Walmart, it’s never been seen as a book lover’s first destination to buy a new book.

While on the surface it seems like a bold strategy from Walmart to try to further entrench themselves in the retail battle against Amazon, it seems more like an act of playground bravado with Walmart claiming ‘anything you can do I can do’. The problem is that books are Amazon’s bread and butter and are what basically turned the company into the success it is today. For Walmart to succeed in this space they would have to offer better deals for publishers and authors which may lead to higher prices of books and higher prices is just not Walmart’s way.