Digital Wal-Marts

Tom Foremski writes:

Are Google, Yahoo, Ebay , Amazon (and maybe MSFT and Craig’s List too) becoming the Wal-Marts of the digital age? It’s an important question as they roll out more of their “local” products and fight for the next big market – local advertisers.

But as with Wal-Mart – smaller, local web sites will find it increasingly harder to compete with these giants because of their scale: their e-commerce platform, products, and services.

And as with Wal-Mart, money will be drained from local communities to the coffers of faraway companies rather than circulating in the community. This will become more of an issue as online commerce grows from its still very small share, less than 10 per cent, of overall commerce.

And as with Wal-Mart, these companies are increasing their use of overseas producers (software developers in India and China) which competes with US developers.

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Rajesh Jain

An Entrepreneur based in Mumbai, India.