CASE STUDY 5

Amazon is a well-known e-commerce multinational company that is well known for its brand,
cloud computing, digital flow and artificial intelligence. With the available resources and
abilities processed by the company., the diversification to Amazon go and Amazon elements
seems to be significant. The company has mainly aimed in creating products and services
that exactly fulfills and satisfies the needs of the customers in their daily lives by providing
out of the ordinary customer services. The company has been highly successful and is able
to achieve a competitive edge with its efficient supply chain, research and development
team, customer-oriented activities and effective marketing strategies. Diversification of the
company through Amazon go and Amazon element help the company to grow and magnify
its profits through online and offline sales. This eventually advanced the core competency of
Amazon in the marketplace. Amazon has significant online market share as the company
was able to generate huge digital sales in the year 2017 by keeping a tap on the change in
purchasing behavior and habits of the target customers.

The new diversification may seem to be a risky aspect for Amazon because the offline
diversification strategy was new for the company as compared to its competitors, as the
company was able to gain success significantly through its online services. In addition to
that, the risk of the cost associated with rent for offline retail space was something the
company had not dealt with only earlier. Another potential risk was that the company was
subject to issues such as negotiations with the sellers and suppliers regarding preferential
treatments on the platform or ranking of their products over Amazon's products.
Amazon has a well-defined, efficient and effective research and development team,
marketing team, with the help of those creativity and innovative strategies the company is
capable of duplicating its online retail success in offline retail segments. The company has
put in great efforts to evolve continuously in public relations and to establish strong and
reliable brand name and customer loyalty to attract customers nationally as well as
internationally. As the company has diversified into offline segments it was challenging for
the company during the initial stages. But now Amazon is able to continue to prioritize the
same values by providing quality services to its target customers. Due to the existing
popularity of the brand name, As the company is moving forward towards the offline
segment with advanced and innovative technology it may prove to be quite different from the
on line segment. As Amazon is the first mover in this technology driven shopping arena, the
company has its own challenges that can be resolved moving forward. The company
emphasizes innovation, creativity, research and development, strategic plans and activities
in order to keep the pace with the changing shopping advancement and to stay ahead of the
competitors. As the company has enough investment and presence in development of the
offline model due to which Amazon Go can be a success in the long run.So in the long run,
the company will be able to generate more Amazon prime members that will eventually help
the business to grow and ensure success.