Amazon.Com Evolving Into Offline Retail Case Solution
Question 3
According to the analysis in the second question about the diversification; I would recommend Amazon to go for physical stores because the cost and benefit analysis depicts that going for diversification will generate more profits and it will help the company in increasing its consumers base. When competitors are doing their efforts; the company would also have to move into the same direction in order to maintain its position in the industry. Diversity will reduce the risk for Amazon in the future as it would help the company in maintaining its consumer base. . Offline retail industry’s expansion will help the consumers to shop from the stores and this option would be feasible for those consumers who prefer the physical purchasing method and food is something that consumers prefer to buy fresh by visiting the stores physically.
Question 4
Recommendations
Amazon had invested heavily in its expansion in the United States through new projects, from establishing Amazon Prime Now to setting up Amazon Books and Amazon Go locations. There are few strategic recommendations for Amazon to achieve an attainable future expansion.The first recommendation would be to build and proceed with a private brand. Amazon has its potential customer base, which is one of the biggest advantages and factors for Amazon to lead a private brand and expand it successfully. This would be helpful for Amazon in boosting up its industry strength and competitive advantage. Taking into account that Amazon is a forceful organization, which shows that the product and market advancement are a significant factor in maintaining its position. Amazon surpasses assumptions in the market share in North America and universally, which shows its clients’ dedication and industry strength.
The second recommendation that would help expand Amazon’s market eminence is to expand into grocery delivery stores followed by the first recommendation. As Amazon is already providing delivery services down to a science, so adding another non-consensual delivery product, such as: grocery, will boost up and increase Amazon’s competitive advantage.
As Amazon has the potential industry strength and market competence, so it would be a great idea for Amazon to lead a private band and expand the online grocery delivery market. These two ideas would have a great impact on Amazon’s overall market competence and financial stability.
Two basic threats being faced by amazon are the threat of having an intense competition and having substitution in the market. Creating a private brand would be helpful which could limit Amazon’s substitution threat; whereas, by expanding the online grocery store; Amazon would be able to compete efficiently in the industry. These two factors would have a great impact over amazon’s overall market competence and would increase its versatility and finances. (Mohsin, 2020)
Question 5
Amazon is a multinational company which provides a platform for its customers to provide different products under one roof. It is the best known for providing millions of products at the best possible price.
Yes, Amazon can develop the concept of offline retail marketing globally by having proper strategic research in overall regions. Conducting a thorough strategic research would help the company in finding its core competitors, suppliers, market forces and competence. After collecting the information, Amazon canplan a competitive strategic plan separately for each region and then it can develop the retail marketing concept in all of these regions separately, according to their needs and expertise.........................
Amazon.Com Evolving Into Offline Retail Case Solution
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