Amazon has invested heavily in acquiring and developing technologies that are allowing it to branch into online services that form an entire online ecosystem, capturing every aspect of a person’s life – from entertainment to social networking to mobile communications - all with links to its online superstore.
For short term , price remains a central competitive weapon as Walmart and Amazon battle online. But in long run, reckless price cutting may do more damage than good to both Walmart and Amazon.
Winning online consumers will require offering not only the lowest prices but also the best customer value in terms of price and product selection , speed , convenience , and overall shopping experience.
CEO of Walmart.com says that their company is based on low prices. But, it’s not enough!!