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Amazon Go Case Analysis:
The key problem Amazon is struggling with is whether their decision to enter the offline retail segment will work. Amazon has been known as a purely online retailer that offer home products, electronics, and are a trusted source of product information. The online retailer decided to enter the grocery market launching amazon fresh and acquiring Whole Foods to offer delivery of food to its customers. This decision still had them in their online retail format and was in line with the company’s strengths. . In 2016 the Amazon decided to also create an offline retail format for its members called Amazon Go a brick and mortar convenience store. The issues with this move for Amazon is that it has resulted in monetary losses due to the increased investment in R&D for new offers and these losses are expected to increase with Amazon’s decision to move forward into a brick and mortar retail environment. Other issues stemming from this decision include how to leverage their competitive advantages, they need to rethink key marketing strategies and evolve the brand identity, and will this work as the market shifts away from the traditional retail formats to online retail formats. How far Amazon takes this decision can have major impacts for the retailer and the size of those impacts depends on if Amazon decides to “Go” or not to “Go”.
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