Walmart's first step in dealing with Amazon was to put pressure on its distributors and upstream factories to remove or delist their products from Amazon.
The second step was to force distributors to choose between two options: if they joined Amazon, they could not put their products on the shelves of Walmart's physical supermarkets. They pushed Amazon to the brink before proposing an acquisition plan, but Amazon rejected it.
The third step, which is now, is to use its own advantages to cut off Amazon's logistics channels.
Judging from these three steps Walmart has taken, it's clear that Walmart is gradually increasing its efforts to obstruct Amazon.
At first, they concealed their hostility, but perhaps realizing that things were getting increasingly difficult to manage, Walmart has now completely stopped hiding its intentions and has directly placed Amazon in opposition to the company.
Xiang Feng joked with Chen Dong: "You're doing well in both Amazon and Walmart stores. It seems they value you as a retailer. You must have played a significant role in mediating between them."
Chen Dong nodded, but quickly shook his head again.
"It used to play a significant role, but that may not be the case in the future. Walmart has clearly placed Amazon on the opposite side now, and I'm afraid that no matter how many nice things I say as the middleman, I won't be able to have any influence."
For Walmart, the rise of Amazon is a major event that affects its interests.
Although the European, Asian and American markets are booming, the profit margins in the low-to-mid-end retail market are shrinking due to rising labor and raw material costs every year.
"Then what can we do? If the logistics channels aren't opened up, Amazon will be strangled by Walmart. Are we just going to watch it happen?" Xiang Feng asked.
Chen Dong turned his head, his eyes showing exhaustion, and said to Feng Xuan, "Asia Travel Capital has just become an angel investor in Amazon. We can't let us suffer a big setback right after entering the market!"
In a sense, Chen Dong was the intermediary between Amazon and Asian investment banks, so he bears some responsibility for this situation.
"Hasn't Amazon just absorbed a lot of private capital? These private capital are either large-scale farmers or merchants like Lingnan Paper, who must have a lot of offline temporary outlets."
"I think Amazon can temporarily turn to these private capital sources." Chen Dong is quick-witted and always manages to find the key to solving problems.
Xiang Feng found it somewhat unbelievable. "You mean, you want these retail customers who have just joined Amazon to use their limited resources to support Amazon's retail logistics channels?"
Before Chen Dong could answer, Xiang Feng denied it himself:
“Angel investors invest in Amazon to make money. Amazon used their power, so wouldn’t creating a temporary channel be taking advantage of the investors?”
“There’s no such thing as investors or investees getting a free ride. If individual investors and merchants don’t open up their channels to Amazon, their money will be stuck in Amazon and tied up.” Chen Dong’s tone was laced with intimidation.
Xiang Feng sniffed. "This is indeed a fatal blow to personal investment."
Individual investments are generally small in amount and they rarely conduct risk assessments. Their investment in Amazon may simply be driven by their interest in this new market of e-commerce.
But this cake, just as it was served, was taken away, and the angel investor was certainly not satisfied.
If angel investors want to reap returns on this Amazon project, they should each use their own abilities to establish channels for Amazon in Europe and North America; otherwise, Amazon will soon be completely devoured by Walmart.
Chen Dong still remembered that not long ago, Walmart had proposed an acquisition plan for Amazon.
For so long, Walmart has been relentlessly pursuing Amazon, but without disrupting its offline channels, suggesting that it still harbors the idea of acquiring it.
However, this time they struck Amazon directly at its Achilles' heel, dealing it a heavy blow and laying the groundwork for future acquisition plans.
Online e-commerce platforms are an area that Walmart has not ventured into. If it can acquire Amazon, it means that Walmart will not only control the channels of offline chain operations, but also the channels of online sales.
This gives Walmart a monopoly in Europe and North America.
Under the management of free markets, European and American companies have always been keen on monopolies, and Walmart is no exception.
Once they've opened up a market, they'll try every means to take it for themselves. If someone tries to share the market with them, they certainly won't cooperate easily.
Walmart and Amazon remained deadlocked for more than half a month.
With the end of the year fast approaching, everyone at Longteng Company is busy preparing for the year-end meeting, as if they're in a battle.
Chen Dong suggested to Amazon that its logistics channels gradually expand from headquarters outwards. However, due to Walmart's dominant position in the logistics market, Amazon faced great difficulty in breaking Walmart's monopoly.
"boss!"
Annie pushed open the door to Chen Dong's office and said to him, "The company's year-end meeting is scheduled for this afternoon. Senior executives from the company's marketing, investment, project, technology, and engineering departments will all attend the meeting."
"Other departments were busy with business with the media company, so they couldn't find the time."
Chen Dong expressed his understanding, noting that it was the end of the year and major retailers were preparing for their final grand year-end promotions. North American Media Company, which was responsible for distributing DragonPlayer speakers, had already put its year-end marketing plan on the agenda.
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