Is Walmart Actually a Tech Company?

Quick Disclaimer: These transcripts are auto-generated. They are best used in addition to the video. We cannot guarantee 100% accuracy.

‍

Ryan Fratzke | 00:00:03:28 - 00:00:27:28
Walmart continues to invest in its digital brand strategy to grow beyond retail. In 2021 Walmart CEO Doug McMillon told investors that we feel emboldened and are moving with more speed and aggressiveness. At the time he highlighted new lines of business like advertising and health care. But now we know their next target and its SAAS a.k.a. software as a service.

Ryan Fratzke | 00:00:28:08 - 00:00:53:01
That's right, folks. Walmart is getting into the software game. They plan on selling their technologies and capabilities in partnership with Adobe to other businesses to help them with their digital transformations. The new service is named Walmart Commerce Technologies, and it looks like everything Walmart has to offer is on the table, including order online pickup in store. So why does Goliath want to partner with David?

Ryan Fratzke | 00:00:53:01 - 00:01:18:03
Or in other words, why would Walmart want to help its competitors grow? Perhaps it has something to do with the fact that the total addressable market for commerce software as a service is estimated to be around $44 billion. Walmart leadership wants to cash in on years of proprietary digital technology investment and a national footprint that finds 90% of Americans within ten miles of a Walmart store.

Ryan Fratzke | 00:01:18:10 - 00:01:41:23
From the outside looking in. This new strategy may seem like a bit of a head scratcher, but for years now Walmart has been reimagining itself. And the image of a tech company, well, it moves away from its big box origins. Few examples include the $3.3 billion acquisition of e-commerce company Jet. The release of new services for B2B like Walmart Marketplace and the roll out of subscription service.

Ryan Fratzke | 00:01:42:01 - 00:02:06:24
Walmart, plus the world's largest retailer, is looking more and more like an omnichannel e-commerce platform that just happens to have 4000 plus locations. So what's the giant takeaway here? Well, from a brand strategy perspective, I think we need to be looking at our businesses and find the cost centers that could be transformed into profit drivers. This could be a major unlock that takes your organization to the next level.