amazon vs walmart

5 Trillion Dollar War – Amazon vs Walmart

If you say that you do not know the name of Amazon and Walmart, then the article about “Amazon vs Walmart” is nothing but a waste of time for you.

But if you are an entrepreneur or a person who is curious about the economic facts and business models, then this article can be a jackpot for you.

Amazon vs Walmart

Here the difference between Walmart and Amazon will be shown and how the competition between the two will be. At first, Patrick Bet David focused on measuring these two companies that are Amazon and Walmart.

Employee Count

Amazon has 650 thousand employees worldwide, and Walmart has 2.2 million employees worldwide, and that’s more than three times.

Establishments

Amazon is running 75 fulfillment establishments in the US, and Walmart has 42.

Revenue

Amazon revenue last year was  281, where Walmart this 514 billion dollars in taxes last year.

Amazon’s profits in 2019 were 11.6 billion, where Walmart’s was 6.67 billion.

Let’s get that straight Amazon is doing 281 billion years, but they profiting 11.6 and Walmart did 514 billion, but they are benefiting half twice the revenue half the number of net profits.

Physical Stores

Physical stores amazon has shy of 600, including whole foods, which are about 500 or those 600 where Walmart has 11300 stores worldwide.

Five thousand nine hundred in the US and another forty-seven hundred outside the US.

Growth With E-commerce

E-commerce business amazon added their two hundred eighty billion dollars of revenue, and 141 more than 50 percent came just from online e-commerce, but for Walmart, it’s only 22.4 billion.

The number to keep in mind for Walmart on the online e-commerce business, that’s coming in as the following.

They did 22.4 billion last year in 2019, but they did 11.5 billion a year before that means they are doubling their plane offense to get that number going up.

Selling Capability

Amazon can sell three hundred and fifty-three million different products, where Walmart sells 35 million different products. (According to the companies daily sales report)

In their physical stores, it’s only a hundred and twenty thousand different products in-store. It’s essential to keep this number of mind one thousand twenty thousand products within the store thirty-five million online.

Amazon’s and Walmart’s Competition

Amazon’s place is fourteen in website ranking, and Walmart is in the 135th position, which is not good.

So here, Amazon is trying to be Walmart, and Walmart is trying to be amazon. Amazon is looking at Walmart’s, and this was not thinkable that they would-be competitors. But they have 11 thousand physical stores.

So if Walmart wanted to do immediate same day shipping and delivery to you, they could do it. At Walmart, 90 percent of Americans have a Walmart within 10 miles, and 140 million people shop at Walmart every week, and that scare Amazon a little bit.

But on the other side, Walmart is sitting there saying they are more prominent, but if they don’t get their act together, these guys are going to pass them up in no time. So it’s better to learn what they are doing.

Revenue Analytics

Now look at the revenues, Amazon revenue, and Walmart revenue; we are going to go back to 2014. In 2014, Amazon revenue was only eighty-nine million dollars, and they then lost 241 million dollars, and this is that calls on amazon investor call everybody used to say jeff what are we going to start seeing profits.

What are we going to start viewing prophecy would say just trust me, trust me long term, long term, and long time. Next, he gets 596 million dollars of profits next year 135 and 2.4 billion benefits 177 3 billion profits 232 out of 10.1 billion dollars in profits more than three times per year prior.

Then he goes to 280.5 billion and 11.6 billion dollars of profits. So now 11.6 billion dollars of profits. It’s nearly twice as much as Walmart. Now look at Walmart 2014, Walmart’s already knew in fallen and 76 B dollars.

It’s not a big difference, but their profits are 16 billion per year. Next year they go to 485 little growth still 16 billion. Next year they go to 495 benefits go lower 14.6 make sure they go to 485 profits go lower 13.6.

Next year they go 500 billion profits goal or 9.8 and the last year 2019 they go to 514, but profits go lower to 6.6. Revenues are going like these profits going like this what is happening. Here is what is taking place.

They are making a play out of their playback. They are saying listen Just be patient we are going to get there because they are taking the money, and they are investing in online e-commerce to try to compete with these other guys, and it’s not just online e-commerce when you see what’s taking place.

Amazon’s Revenue

Let’s go to Amazon or Amazon’s game. It is amazon’s revenue of where the revenue comes from remembering how we said, 281 billion dollars, and I told 141 billion dollars of that as e-commerce that’s the number one revenue more than 50%.

Still, the one part that we did not include in this 141 billion is the fact that third-party sellers for amazon sell another 53 billion dollars on amazon.

Which you include those two to get it’s about one hundred 94 billion dollars per year added a 281. So keep that part, we simply separated it to say that’s Amazon’s online stores.

So 53 billion there, then you are going to AWS, which is amazon web services, which we will get into that one in q4 of 2019.

I think it did 9.6 billion, and it grew by 35%, which is insane when you hear those numbers, we will get into what that is I am a customer of AWS on two different companies then you have the subscription which is the prime 19 billion per year.

Nineteen billion is just prime subscription, then you have their physical store 17.19 a big part of it is whole foods, and last but not least is other 14.9 billion whatever another kind of income. Let’s go back to AWS.

List of the companies that use amazon web services

  • Airbnb relies on AWS. Netflix is hosted on AWS.
  • Shopify AWS, NASA, on AWS as well.
  • Adobe, GE, Monstrosity all are on AWS.
  • British petroleum relies on the Amazon web services department of state. Amazon web services Ministry of Justice.
  • Bank of Singapore.

DBS is the department bank of Singapore. It’s the bank of Singapore that uses AWS. It is allowing amazon to make money and lose in other areas.

It’s a cash cow, and this is something where a lot of people can do that and has the advantage for them where they have money coming in from certain places, and they can lose money in other sites.

They don’t care because they have money coming in. It’s an advantage that they have a very very big power that they have AWS. These are the companies that some of the places that revenue is coming from.

Companies Amazon Owns

  • Amazon owns wholefoods
  • IMDb
  • Zappos that amazon holds shoes.
  • Ring
  • Alexa
  • SOUQ that’s an e-commerce platform, like google or amazon, in the middle east.

Their budget for a prime video every year is 4.5 billion. HBO’s is 2 billion dollars, like Amazon is everywhere.

Services Amazon Do Offer

To make our life easy, amazon is developing new services. Some of the most promising services of amazon has been listed here.

Walmart Owned Companies

  • Sam’s club
  • Flipkart
  • Jet-It was a form of amazon, and they pay 3.3 billion dollars.
  • Vudu.com it’s like Netflix, prime. They compete in the market place.

How Are The Things Taking Place?

America spent last year 800 billion dollars on groceries. Only 2% is online. Walmart is trying to get that market like they want to get 10 to 50%. If that gets to 50%, that’s 400 billion dollars.

The entire retail industry was $5 trillion last year. 10% was e-commerce. If the 10% goes to 25%, it would be 5 trillion dollars; that’s a lot of money. They are trying to compete for that marketplace, and both of them are alright.

Now we know how big Walmart is with 90% of Americans have a Walmart within 10 miles radius of a Walmart, and 140 million people shop at Walmart every week.

A lot of people fall in love with Walmart, like Amazon is creating a lot of enemies such as google. Google partners with Walmart on voice-enabled grocery shopping. Walmart got 11,000 formal fulfillments.

There are twenty thousand most popular products that you want to buy. You can order online as Walmart is only ten miles away from you.

The real heavyweight fight is because Amazon’s 650,000 employees are going against  2.2 million employees.

So before you say, Amazon’s going to kill everybody, you should know that there are a lot of Amazon’s enemies behind closed doors are now helping Walmart beating amazon.

Final Verdict

Digital marketing is the backbone of Amazon when Walmart is concerned about every type of marketing.

One thing is common in both of the companies. Both of them have a strong presence in the affiliate marketing world, where product reviews are the fundamental source of customer acquisition.

Amazon’s affiliate program is more popular than Walmart, which made the battle of Amazon vs Walmart more dangerous.

As if a woman wants to buy perfumes, then she must search on google as “best perfumes for women,” and she will get the best source to pick up her favorite one.

low cost airline-EasyJet reviews-EasyJet airlines-Ryanair review-Ryanair airlines

How Low Cost Airlines Like EasyJet and Ryanair Works

Did people want to know how our low-cost airlines so cheap?

Well, it’s another complicated answer but an interesting on. For simplicity and to keep our European fans from feeling left out, we will focus on that European model of low-cost airlines.

While there are low-cost airlines in North America, South Africa, India, Asia, and plenty of asking other places, budget airlines were first successful in Europe and their swear they are still outstanding these days. The magnitude to which airlines like Ryanair and Easyjet decrease the cost in Europe is also much more notable.

Low-cost airlines in the US, which might be ten or twenty percent less costly than their competitors while in Europe, a fare on a budget airline might only cost half or third of what you would pay to a regular airline.

You can regularly find 23-hour flights on a budget airline for less than €10. So how do they work?

Well, unsurprisingly, budget airlines mainly take every expensive part of the flight and make them less expensive. The most important thing an airline company needs is the fleet, and it is possible to spend less on airplanes.

In the months and years following 9/11, the rise of our travel stalled, and most airlines were simply fighting to survive. You can read the following article to know more about Airbus a380 and Boeing 787 Dreamliner.

Meanwhile, Ryanair was thriving and placed a large order of 151 737’s from Boeing unbelievably low prices. A circumstance like that luckily is not frequent, but low-cost airlines can place big orders at any time, which helps them to get a bulk discount.

It might seem weird that a low-cost airline would buy brand new airplanes, but the latest planes are the most efficient who are saves well. The fuel efficiency of new aircraft counterbalances the higher price, so EasyJet, Jetblue, Ryanair, and spirit airlines all have more adolescent fleets than any significant airlines.

Low-cost airlines will also typically have only one type of plane. Ryanair operators 737‘s and EasyJet only operates that a320 family.

Having a single type of aircraft’s fleet means that pilots, flight attendants, mechanics, and ground staff only need to be trained on that particular type of aircraft, which saves an enormous amount of time and money. Within the planes, budget airlines will Often you would avoid luxuries to keep expenses down.

Ryanair seats, for example, don’t recline because that increases the initial purchase price for seats and also requires more maintenance. The seat design also saves time for flight attendants since there are no seatback pockets to clean between flights.

Flight attendants on budget airlines are often at the beginning of their carriers and receive little training. Of course, they will get the required safety training but only minimal hospitality training. They will also often serve multiple roles. While on the ground, some of the flight attendants might go to the gate and check tickets while others clean the airplane.

Though this, airline eliminates three or four positions that they regularly would pay for. Onboard, flight attendants R of coarse responsible for food and drinks which are rarely free.

Onboard service can be an excellent way for the airline to make money. Many budget airlines also make duty free sales, and Ryanair even sells lottery tickets. Let’s talk about airports.

You are never going to see Ryanair fly to London Heathrow or parish Charles de Gaulle because those airports are expensive. There are only a  set amounts of all flights per day that can operate out of them, so supply And demand dictate that landing fees are high and slots are regulated.

Instead, Ryanair flies to Gatwick, Stansted, or Luton in London or Beauvais in Paris, which by the way, is an eight-minute bus ride away from Paris, is not even technically in the same region of Paris, and has a website.

In a lot of cases, Ryanair or other budget airlines are the only or one of a few airlines flying out of an airport, which gives them substantial negotiating power.

Often they will take a small regional airport area from a city and re-brand it as eat another city airport. They can ask for lower Landing and takeoff prices and, if the airport does not comply, just leave, and the airport will permanently cease to exist.

If there is not a viable cheap airport available around the  City Port,  budget airlines can also fly two regular airports at less busy times when landing fees and the chance of delay might be lower. Now let’s get into the nitty-gritty the small details. The planes of budget airlines tend to operate all day nonstop.

For example, in one day,  this Ryanair plane went from Brussels to Copenhagen, Copenhagen to Brussels, Brussels to Prague, Prague to Brussels, Brussels to Nimes, Nimes to Brussels, Brussels to Treviso, then finally Treviso to Brussels.

Budget airlines will schedule only 30 to 45 minutes between the landing of one flight to the takeoff of another, Which often leads to delays and leaves very little time to clean the aircraft. This does, however, mean that airplane is always making money and passengers are not paying for that time it is sitting around.

Ever wonder why Southwest does not happen reserved seating? Well, by having a first come first serve system for seats, people almost always show up to get early and line up in an orderly line.

This way, less time is spent on the ground boarding and more time in the flying. Another principle of Budget airlines is the point to point model. Most traditional airlines have hubs where most or all of their flights go in and out of.

British airlines have London, and Air France has Paris, KLM  has Amsterdam to get to most places on these their airlines, you have to connect through their hubs. Budget airlines, on the other hand, try to have a lot of destinations from everywhere.

That does mean, however, that many destinations are served only a few times per week. The cheapest budget airlines don’t even allow for connections between their flights allowing connections at cost because then you have to pay for ground crews to transfer bags, create a more complicated ticketing system, and pay to rebook a passenger If a delay in their first flight makes them miss their second. Speaking of ticketing, there is often no way to get a ticket from a real person from on budget airlines.

Ryanair charges 45 pounds if you fail to print your boarding pass at home, and EasyJet and some other carriers have almost all their check-in handled by machines. This once again cuts down on personnel costs. At the airport, these budget airlines won’t bother using jetways because they are expensive.

They will use steps and just have passengers walk across tarmac or take a bus to the plane. Low-cost airlines make a lot of money If done right.

  • Easyjet (11.15%),
  • Ryanair (24.10%)
  • Wizz Air (10.2%)

all have higher profit margins than Lufthansa (4.03%), British Airways (7.09%), and Air France (2.15%).

Many of the traditional airlines have unionized workers with salary agreements that cannot be changed while the budget airlines can hire anyone and train them in a few months. It is also hard for these traditional airlines to grow.

Any route they make has to be one with a lot of pre-existing demand since much of their business comes from business travelers. Since budget airlines are targeted more towards tourists, any destination that Ryanair, for example, opens up in will become a popular destination just because it is possible to go there for cheap.

Some traditional airlines in Europe are opening their budget airlines to get in on this profit. Air France created Transavia, and Lufthansa created euro wings, both of which are losing massive amounts of money. What they seem to forget is that the US went through this budget airline within an airline face a couple of decades ago.

Delta created the song, which failed. Us Airways created Metrojet, which failed. United created Shuttle, which failed then, they went into bankruptcy and decided they should try again and make Ted, which failed.

None of this worked. Traditional airlines cannot get away from their labor agreements, honest business practices, and devotion to their hubs. The reason Ryanair and EasyJet can succeed where others have failed is significant because they are so broad and flexible.

They have hundreds of planes, hundreds of destinations, thousands of employees, and negotiating power that allows them to overpower competitors. In the end, for us consumers, any competition is good competition. Even failing budget airlines will bring down the cost of traditional airlines and allow asked to travel the world for less.