Wal-Mart Agrees to Buy Jet.com for $3 Billion

The transcript discusses Walmart's challenges in growing its online sales compared to Amazon. Despite significant investments, Walmart's online growth has slowed. The company acquired Jet.com for $3 billion, hoping to leverage its technology and team, led by Marc Lore, to compete with Amazon. Jet.com achieved rapid growth, but questions remain about its profitability and pricing strategy. Walmart aims to integrate Jet.com's business to eventually report profits in its online operations.

What is one of the main challenges Walmart faces in the online market?

• Lack of investment in technology

• Limited product range

• Slow growth compared to Amazon

• High employee turnover

Why did Walmart spend $3 billion on a young company?

• To reduce their overall expenses

• To expand their physical store locations

• To gain a competitive edge with new technology and people

• To acquire a profitable business

Who is Marc Lore in the context of Walmart's acquisition?

• A competitor's CEO

• Walmart's new marketing director

• A financial analyst

• The founder of the acquired company

What strategy did the acquired company use to grow rapidly?

• Focusing on luxury goods

• Reducing their workforce

• Offering products at lower prices than competitors

• Expanding internationally

What is a potential issue with the acquired company's business model?

• It may not be profitable

• It relies heavily on physical stores

• It has outdated technology

• It lacks a strong customer base