https://www.youtube.com/watch?v=rsuZFKqom3w

A news that I found interesting from CNN Business talks about Walmart’s next move after takeover jet.com. On Oct. 1, WalMart announced they would use $3 billion to buy Jet.com Inc., an Internet retailer and e-commerce site, in order to boost and enhance the company’s e-commerce capabilities. The acquisition of Jet.com is expected to give WalMart an opportunity to consolidate and coordinate Jet.com’s online business and it’s resources and clients to further help WalMart to compete with Amazon.

After this acquisition, Walmart intended to cooperate with India’s largest e-commerce retailer Flipkart, and Walmart is willing to invest up to $1 billion in this collaboration. It is a profitable investment, in the video shown in the news, India’s richest man is woking on to let 80% of population in India to gain phone access by the end of 2017. India has the largest population in the world, if 80% of them do online shopping, it is pretty tasty to Walmart.

Why Walmart choose to work with India? There are several reasons that i think explain the investment. First, Wal-Mart can use the largest online company- Flipkart in order to survive in India’s tough regulations on foreign investment,and can have a more stable foothold in the country. To cooperate with India makes Walmart more competitive to Amazon, which is the main rival to Walmart. “Wal-Mart’s e-commerce sales last year reached nearly $14 billion, or 3% of its $482 billion in annual revenue. Amazon’s sales hit $107 billion last year, including its web-service business.”( Nassauer,WSJ) Learn from an past example , China has a large population and by having more people have the access to internet, makes the online shopping market blooming. India has a very similar situation, where Walmart sees it. Also, by working with Flipkart can let Walmart have a better connections with the local supplier and local consumers. Walmart move in to India’s market is a wise and outlook decision.

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http://www.wsj.com/articles/wal-mart-to-acquire-jet-com-for-3-3-billion-in-cash-stock-1470659763

http://money.cnn.com/2016/09/30/technology/walmart-flipkart-deal-talks/index.html?iid=SF_LN

Picture and video website:

http://www.fonearena.com/blog/198608/walmart-to-reportedly-invest-up-to-1-billion-in-flipkart.html