Amazon Go Case Study

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AMAZON GO

Venturing into Traditional Retail


1 OUTLINE

Amazon History
Amazon Development
Competitive Advantage
Amazon Go
Problem
Conclusion
1 HISTORY
1994-1997 1998-2004 2005-2010 2011-2017

Global Expansion & Diversification, Early Steps in Innovating & Diversifying


Laborious Financial Results Service Industry & Own-Brand At as Faster Pace
Products
Jeff Bezos
Amazon.com Amazon Locker
Amazon Prime Air
International Expansion Amazon Go Goodreads
Different Languages Amazon Music LoveFilm
Amazon + Ingram Amazon Prime KivaSystems
Amazon Web Services Amazon Video Direct
Amazon Mechanical Turk Amazon Video
Amazon Kindle Amazon Books
45 countries Other Amazon-owned products
$20K/week
1 DEVELOPMENT

Amazon Elements – food & BIG 4 Global Digital Companies


consumable goods manufacturing • Google
• Apple Inc,
- Online to Prime Members • Facebook Inc.
- Offline to Amazon Go • Amazon

Key Achievements
• Websites in 14 countries Amazon Go – first brick & mortar
• Shipping services in 75 convenience store
countries
• 268,900 employees in 2016 - Mobile e-commerce, machine
• Research & Development learning & computer vision
investment
1 COMPETITIVE ADVANTAGE

“Brand names are


Brand Awareness important online”
&
Innovative “Best stories
Marketing matter”

Online stores with


Efficient Supply warehouses in
Chain strategic locations
Management
Work to charge less

Put the customer


Customer- first. Invent. Be
Centricity & patient
Innovation
Customer-focused
means pioneering
1 AMAZON GO
1 PROBLEM

WHAT THEY HAVE DONE WHAT THEY COULD DO BETTER

• Addressed every customer need that they find • Focus their services on where they are best at

• Invest on infrastructure to address customer • Not all customer needs can be address by new
needs infrastructure but rather by improving an
existing one
• Making their service available worldwide
• Support their suppliers and not create a
• Creating the same product as the supplier rebranded product

• Collecting of customer data threatening • Be transparent on what date are collected


customer privacy
• Be prudent in investing
• More investment, stagnant ROI
1 CONCLUSION

CHALLENGES RECOMMENDATION

• Amazon Go and Amazon Elements are • Make Amazon Go & Elements to all
both offline and online but available Amazon members
only to Prime members
• Remain being customer-focused and
• Replicate online competitive advantage listen to what they want then innovate
to offline markets
• Leverage on customer databases to
• Possible resistance from employees and identify customer needs
unions due to potential job cuts
Making a decision is not a risk, what’s dangerous is
not to evolve.
- Jeff Bezos

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