Wal-Mart Management's Amazon.com Bluff Proves They're Astute Game Theorists

 |  Includes: AMZN, WMT
by: Paul Kedrosky

Oh, those shrewd game theoreticians in Bentonville, Arkansas. Speaking at AMD's Global Vision Conference, Wal-Mart's (NYSE:WMT) chief marketing officer bluffed that the company doesn't care about Amazon (NASDAQ:AMZN), calling it and its $10-billion in revenue "meaningless" against mighty Wal-Mart and its $300-billion in sales. Given that online sales account for a tiny 1% of Wal-Mart's sales, he argued that it was basically a marketing expense for the super-retailer.

Clever. What better way to convince investors that a) Wal-Mart isn't interested in Amazon, and b) that Amazon is irrelevant, than for Wal-Mart to declare Amazon irrelevant and unimportant. So yes, I'm still predicting Wal-Mart is going to buy Amazon -- what better way to grow their online presence quickly? -- but those Wal-Mart guys are shrewder game theorists than I thought.

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