In late 2009, Walmart.com began aggressively lowering
prices on a wide variety of popular items, making
sure in each instance to undercut Amazon’s
price. The types of items Walmart discounted
included books, DVDs, other electronics, and toys.
The message was clear: Walmart is not going down
without a fight in e-commerce. And Walmart.com
executive Raul Vazquez echoed the same thought,
saying that Walmart will adjust its prices “as low as
we need to” to be the “low-cost leader” on the Web. In
other words, the two companies are now locked in a
price war, and both sites are determined to win.