AMAZON GO: VENTURING INTO TRADITIONAL RETAIL

Amazon is one of the top digital store companies Facebook Inc., and Apple Inc. Significantly, it
provides its services via the website to customers in approximately 14 different nations and offers
shipment to customers in around 75 nations worldwide. Between 2014 and 2015, Amazon's online
retail sales greatly outpaced those of Walmart Inc., Apple, Target, and other companies combined.
The introduction of Amazon Go in 2016 represents the first physical food shop to employ computer
vision, machine learning, and mobile e-commerce. However, it showed a 7 percent fall in revenue in
the third quarter of 2016, which is less than the anticipated amount.

Additionally, Amazon was ranked as the fourth most valuable public company in the United States. It
primarily consisted of over 268,900 personnel, a 47 percent increase from 2015. In 2017, Amazon
offered 48 distinct product categories that it and other companies had developed and marketed. For
enhancing its offerings and creating new market niches, Amazon frequently invests continuously in
R&D.

Question 1.
Were  Amazon’s  diversifications  through  Amazon  Go  and  Amazon Elements  appropriate,  given  t
he company’s resources and capabilities? 

Assessing the diversification:

Aware of its diversification, Amazon began its global business expansion by entering Germany and
the United Kingdom, followed by China, Japan, and France. The absence of considerable growth and
profit generating throughout the organization's early stages of corporate expansion led to
shareholder unhappiness. However, because to its gradual expansion, it was spared significant losses
from the dot-com bubble. Through a rise in product offers, Amazon has shown considerable growth
and variety of its offerings since 2001.

One of the biggest contributors to the product variety given by Amazon in terms of new product and
service innovation was the purchase of companies like GoodReads, LoveFilm, and Kiva Systems.
Additionally, three years before Apple's iBooks launched, Amazon launched the Kindle, giving
readers with electronic books access for the first time. Amazon was successful in exceeding
Walmart's market capitalization because of the substantial changes in its market share over time.

In terms of sales, Amazon accounted for all American online retail sales by the year 2016.

Therefore, such significant and perceptible growth proves that the business has benefited from its
diversity of products and services. For this reason, it has a sizable workforce, a big uptick in sales,
greater revenue growth, and the ability to compete to stay in the running to be the top online
retailer. Despite having eclipsed Walmart, one of Amazon's main rivals. But the rapid changes in
market dynamics and technological usage have shown a greater fall in sales than was anticipated.

Question 2. Can Amazon reproduce its online retail success in offline retail segments? Will it be
able to become the biggest offline retail players?
Amazon initially created an online business, but they soon realised they needed to grow and expand.
Bezos anticipated that warehouse management would be a major area of concentration for the
business both at the outset and as it grew. Amazon needs to be able to move goods fast and get
them where they need to go even after expanding into a physical shop location because their online
business will undoubtedly continue to grow and prosper. Robotic technology will undoubtedly
continue to be used at smaller store locations in addition to large warehouses. If you have the
technology to use it and reduce personnel costs, it only makes financial sense. "If your attention is
on your competitors, you must wait until they are acting. This statement from Bezos shows how
much the company appreciates its consumers and their experience. "Being customer-focused helps
you to be more pioneering." Amazon and all of its divisions should lead the market, according to
Bezos. He wants them to live in the blue ocean alone, free to develop to their greatest potential. He
doesn't want any other sharks around them. Amazon is creative, persistent, and prioritises its
consumers. Amazon intended to provide customers a unique, cutting-edge shopping experience they
couldn't find anyplace else.

Despite Jeff Bezos' belief that brand recognition matters more for internet retailers than for brick-
and-mortar stores. There was no denying the advantages of the offline stores being implemented
globally. derived from the current brand equity. Not only has Amazon been able to secure free press
attention for as well as free social media influencer marketing, not just its physical locations. Because
of Amazon's lower marketing and supply costs, it was able to attain economies of scale. it was able
to keep pricing cheaper in its offline outlets as well, in comparison to competitors of it. The company
has operated in physical bookshops before Amazon Go.
The information presented above suggests that Amazon is well-positioned to succeed in physical
locations in the the same way that it transformed online commerce. Considering its creative
methods and It has already been labelled the "Future of Offline Retail" in terms of business strategy.

Question 3. As the first mover in its shopping technology, will Amazon Go be able to succeed in
the long term?

Answer 3. By maintaining its competitive advantages, Amazon has always found a way to provide
distinctive and valuable customer experiences. With their new shopping technology, Amazon is
entering a new offline market, which may end up being quite distinct from their online market. First
off, because Amazon had the means to truly implement this notion, the other major competitors in
the market took notice when they heard that they would be joining the offline area. The slogan for
the Amazon Go concept was "No queues, No Checkout, Just Grab and Go." Given that Amazon
pioneered this technology-driven retail arena, the company today dominates a small industry, thus
eliminating the red ocean for the time being. Additionally, because Amazon thrives on strategic
innovation and R&D, this technological development in shopping has temporarily pushed them
ahead of rivals. Long-term success for Amazon Prime will be facilitated by this shopping technology
as it will lead to an increase in Amazon Prime subscribers.

Question 4. How can Amazon’s offline retail marketing concept be developed globally? 

Answer 4 Overall, Amazon's global growth in offline marketing may be limited. Amazon has always
operated entirely online, which means that they only have import taxes on their products because
they use international delivery services. If Amazon wants to establish a physical presence in other
countries, the laws and regulations are much more stringent. When these types of supermarkets are
built in other countries, a cultural aspect comes into play. People's shopping habits vary by country,
and Amazon Go may not fit the mould outside of many Western countries. Amazon Go's business
model is based on convenience. In other countries, consumers may be more concerned with price
than with convenience. Overall, the offline retail market has many more obstacles and risk factors
to consider than the online space, which may limit their ability to expand globally.