Did you buy something on Amazon this week? Maybe you even bought something yesterday during Amazon’s one day shopping campaign which successfully put amazon stock at an all time high. CEO Jeff Bezos, the wealthiest person alive, is now worth more than $150 Billion- more than Bill Gates and Larry Page combined. Further, Amazon (valued at $890 billion) is now closely on track to pass Apple ($950 billion) as the worlds most valuable company. If this pattern of success continues and Amazon has another positive quarter, the company may be worth more than $1 trillion and Bezos closer to $175 billion. This further proves how Amazon has changed the way we shop, communicate, and share data. Amazon has changed the world and Jeff Bezos MAY be one of the most powerful people today.
However, as Amazon continues to take over, companies that used to be major competitors are losing their spot. Microsoft and Walmart are falling behind in Amazon’s wake and have recently joined forces to fight against the enemy. Both have signed a five-year deal that will boost the technology services, artificial intelligence (AI), and cloud businesses. Microsoft has remained a stead competitor with Amazon in cloud services, but hopes to surpass Amazon’s abilities when joining with Walmart. Walmart, on the other side, will benefit from Microsoft’s AI information technology and help to reduce energy consumption in stores and improve delivery. Delivery is one of Amazon’s strongest marketing points, and Walmart desperately needs to get on their level of speed and diligence. Further, virtual shopping via phone is something Microsoft and Walmart will have to work on in order to be competitive with Amazon.
Will Microsoft and Walmart be able to compete with Amazon, or have both companies let the competitive divide get too deep to the point where they won’t be able to match Amazon? Amazon’s success didn’t happen in a day- Microsoft and Walmart should have come together YEARS ago to keep their positions in the marketplace. At this point, it is going to be extremely hard for both companies to get back to a competitive position even despite their partnership. It is no secret that Amazon has been getting more and more powerful every quarter. Microsoft and Walmart should have recognized the need to match Amazons abilities a LONG time ago, and it will be interesting to see if their partnership makes a difference in the grand scheme of business.