Walmart (WMT) Boss Warns Competitors
November 19, 2009 1:18 PM
Walmart.com has waged a price war against Amazon.com a month back with deep discounts on some of its best selling books. Now, the CEO of Walmart CEO Raul Vasquez has warned competitors that they would be hit hard if they tried to wage another online price war.
He has declared that if competitors try to lower prices, his company would lower prices further. Vasquez says that if there is going to be another Wal-Mart Stores, Inc. (NYSE: WMT) online it will be Walmart only and not any other company. This is at variance with the dream of Amazon.com CEO Jeff Bezos of being number one in online deals and lowest prices.
Amazon.com has an online book business of $19.5 billion which is still the largest, but its growth rate is lower than that of Walmart.com by about 1.4 percentage points. Vasquez launched a price war by selling Stephen King's "Under the Dome" and Dean Koontz's "Breathless" for just $10 and watching Amazon squirm.
