What do Walmart and LEO have in common?
How can we compare the largest retail chain to a small, Web3 digital platform?
Obviously, the two are not comparable. There is, however, a lesson to be learned from this. Since we speak of technology and digital platforms, it is crucial to point out what this truly means.
Walmart is as clear cut a company as they come. It is in an industry that has been around for hundreds of years. merchants date back to the earliest of times. Sure, where the activity takes place has changed, moving from the plazas and squares. That said, the activity is still the same.
Buyers and sellers coming together. Even in the digital age, this is still the case.
Walmart More Than Just A Retailer
The company announced its earnings and there was something that stood out to me.
Before getting to that, there was an earnings call somewhere around 2016 that I listened to. On that call, the CEO stated how they are going to invest billions of dollars into technology. Off the top of my head, I do not recall the figure but it was stunning.
Of course, this was something that many thought senseless. Why would a retailer have to turn into a technology company? That was the stated goal.
Years later, we are seeing the result of this decision.
There is one reason to do that which we will get to in a moment. Before going there, we have this tidbit which I latched onto.
Many of those who regularly read these articles know I often cite a company called WebVan. This was an idea during the Dotcom era that operated for a few years. The idea was sound, just a few decades too early.
Here is what Walmart had to say:
E-commerce sales shot up by 22% year over year for Walmart U.S., fueled by store pickup and delivery of online orders, as well as the company's growing third-party marketplace.
Reading that line would make you think we are looking at something from Amazon. E-Commerce? Deliveries? Online Orders? Third-party marketplace?
Did you even know that Walmart had a third-party marketplace?
This is what happens when a company goes digital. An entirely new spectrum of possibilities open.
If one of the stodgiest of companies, a basic retailer, can make the transition, we can see where the future resides.
Of course, this is not the only insight we are getting. Recently the company announced its acquisition of Vizio for $2.3 billion.
Why would a retailer buy a television company?
Perhaps because it sees what is happening with Roku.
These are the top 10 streaming services according to Nielson. Notice how Roku is number 6 on the list, outpacing the likes of Max and Paramount.
It is evident that Walmart wants into the streaming game. Anyone want to guess what kind of televisions the company will be selling (if it isn't already)?
Technology Companies Are In Every Industry
The key for us to remember is that traditional companies have a particular industry.
This all changes when dealing with a technology company. There is no industry for that. Instead, they are in whatever they desire.
Here is the lesson for Leo and why the Walmart path is such a powerful lesson.
It is easy to see the success of Amazon. That is an entity that basically started and got on the flywheel path very quickly. Walmart is a different story.
When we look at what is possible, thinking in new directions is vital. Leo is a digital platform. Therefore, most any industry has the potential for integration. Obviously, there are limits to consider such as money, time, and competition. Nevertheless, as a mental exercise, tis is crucial.
The tendency is being too isolated in our focus. At this moment, if you think of Leo, what comes to mind? The problem is that we have references in our mind of what this is.
Much of what I discussed of late centers around the idea of expansive thinking. We are immersed in the technological era. It is imperative that we jump on board. Those that fail to do so will be left behind.
One advantage that Leo has is that it is a digital platform, able to incorporate different ideas in. This is where the community, if it starts innovating, can really come up with some good ideas.