Jason Calacanis CNBC SquawkAlley 5/1718: Amazon v. Walmart, YouTube Music mess, Instagram

TL;DR

Amazon's behavior towards other retailers, including Walmart, is seen as predatory, and Walmart is struggling to compete with Amazon's e-commerce growth.

Transcript

let's bring in Scott Galloway professor at NYU Stern School of Business and New York Times bestselling author as well as Jason Calacanis founder of insight comm and an early uber investor morning guys good to see you morning we just talked to Bill Simon of the former US chief of Walmart and you talked about the question of whether or not Amazon's b... Read More

Key Insights

• 🙈 Amazon's pricing strategies, like lowering prices at Whole Foods, are seen as innovative and not predatory, despite their impact on competitors.
• 😀 Walmart's dominance has decreased, and they are struggling to keep up with Amazon's e-commerce growth.
• 🏪 Click & Collect, Walmart's grocery pickup service, may hold the key to their success as it caters to consumers' preferences for convenience and avoids the in-store experience.
• 🐕‍🦺 Google's rebranding of its music and video services exemplifies its struggles with branding and simplification of products.
• 💗 Social media addiction, including Instagram, is becoming a growing concern, and companies like Facebook should take responsibility for the negative impact on mental health.
• 🥹 The government needs to hold tech companies accountable and regulate them, similar to other industries like tobacco, to protect consumers and society.

Questions & Answers

Q: Is Amazon's behavior towards other retailers considered predatory?

Yes, Amazon's aggressive pricing strategies and acquisitions, like the purchase of Whole Foods, are seen as predatory towards retailers, including Walmart.

Q: How is Whole Foods affecting the grocery market?

Whole Foods has lowered prices by 30-40%, making it more affordable than competitors like Kroger. This move attracts consumers and puts pressure on other retailers.

Q: Is Walmart's strategy to compete with Amazon by acquiring foreign competitors effective?

Walmart's decision to acquire a foreign competitor, while struggling to compete with Amazon domestically, seems like a questionable strategy. It may not address the core issues they face in the US market.

Q: What impact does Whole Foods have on Amazon's profitability?

While Whole Foods might not be a significant moneymaker for Amazon, it adds value to their Amazon Prime membership, creating a loyal customer base and driving overall profitability.

Summary & Key Takeaways

• Amazon's behavior towards other retailers, particularly Walmart, is perceived as predatory, similar to dumping cheap steel into the US market.

• Whole Foods, owned by Amazon, has lowered prices significantly, offering high-quality groceries at cheaper prices than competitors like Kroger.

• Walmart, a once dominant player, is struggling to compete with Amazon and has made questionable decisions, like acquiring a competitor in a different country.