Question : what is the current situation with regard to the online retailing market and Walmart's position in that market ? Walmart's success in the future will require that the company respond effectively to the growing trend towards online purchases and the emergence of Amazon . com as a major competitor . The online retailing market , 11.7 % of total retail sales in 2016 , is expected to grow from roughly $390 billion in 2016 to over $1 trillion by 2026 . According to Internet Retailer , the problem for Walmart , and other companies trying to compete online , is that Amazon .com drove 65 % of e-commerce growth in 2016 . Walmart losing to Amazon online in a big way In response to this trend towards sonline purchases , and to attempt to better connect with millennials , Walmart decided to purchase Jet.com for $3.0 billion . Like Amazon.com. Jet .com was an online discount retailer but one that focused on more price sensitive customers by attempting g to provide better pricing than Amazon .com using a dynamic pricing model .One of the first things that CEO McMillon did after the acquisition was make Jet.com founder Marc Lore President of Walmart's U.S. e -Commerce business But the acquisition of Jet. com - and putting Lore in charge of Walmart's e-commerce business -raised a number of questions going forward Question : If you were running Walmart, what actions would you take to compete more effectively online ? Would you continue to run Jet . com as a completely separate site from Walmart .com ? If so, for how long? Should Walmart .com adopt some of the innovative pricing approaches used by Jet . com ? What other suggestions do you have for Walmart increasing its ability to compete effectively with Amazon .com ? V. Summary of Key Ideas The key ideas are summarized in this section Wal-Mart's Strategy : The inter -relatedness of Walmart's 4 strategic choices 1. Choice of markets to serve a. First to locate stores in cities with less than 50,000 population b. 1762 stores in rural America vs 476 stores for Kmart and 48 for Target C. Higher prices in small markets d. Lower costs in small markets