Walmart thinks it has 4 strategic advantages over Amazon

The war between Amazon and Walmart is well known in the world of retail.

In order to win over customers, the two retailers have been trying to one-up each other by slashing prices.

At an event hosted by investment bank Jefferies, David Cheesewright, president and CEO of Walmart International, said he was optimistic about the future prospects of his company’s digital business.

Cheesewright outlined four strategic advantages Walmart has over Amazon that will help it triumph over the tech giant.

According to Jefferies they are as follows:

  1. Multiplier Effect: “Multiplier effect on sales from having a brick and mortar footprint and online presence.”
  2. Global Scale: “WMT’s global scale provides great access to product and an ability to price aggressively. also provides access to an even wider range of product.”
  3. “ has Smart Cart proprietary technology that adjusts prices in real time based on proximity of product to the shopper and shipping costs.”
  4. Infrastructure: “By giving customers the flexibility to choose when, where, and how to shop, WMT is able to better serve customers in a way pure online players cannot. Food and consumables are great traffic drivers and WMT”s vast distribution and store network gives it a leg up in serving the customer.”

The bank has a price target for Walmart of $US86 per share, above its current market price of $US72.67.

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