Online distribution

Online Distribution

Zachary Wallace posted Mar 1, 2018 3:27 PM

Today we live in a fast pace environment.  Everything is available at a moments notice.  We communicate with the other side of the world at the push of a button, and can shop online and have our purchase shipped right to our doorstep.  This is where Amazon has found a large amount of success.  They started as an online book dealer, and now sell almost anything you can find in a brick and mortar store.  They have taken the next step and are now diving into the grocery market.  I believe that this is an excellent move for Amazon.  They already have extensive knowledge of shipping and distribution, with respect to the items they are shipping.  They have seen that similar and yet smaller companies such as Yummy.com successfully carried out this business model. (Wells, 2103) Amazon, with its larger pool of capital, and its extensive logistical knowledge to mimic this model on a much larger scale. Given the speed and popularity AmazonFresh thus far in what could still be considered its infancy, I believe they would be at an advantage over companies that are taking their existing grocery stores and offering online shopping and shipping for their products.  The ability to use technology to quickly obtain products fits well into their everyday life.  For AmazonFresh they are using a very similar structure to what they have been using, however, they are just applying this method to a new type of product.  

One of my favorite grocery stores is Walmart, simply due to the convenience, pricing, and the wide variety of items.  This store has done nothing to draw my patronage from online stores, as they now offer online grocery shopping.  All that is required is that we pull up to the grocery reception center and receive our offer.  I find that there is very little or nothing that any store could do to draw me away from shopping online.  However, I prefer shopping for my groceries in person.  I am particular about selecting my own products, especially produce, and I feel that having my groceries delivered of picking them up already packaged increases the chances of receiving sub-par products.  There is really nothing they could do to retain my loyalty as I am not loyal to one specific store.  I tend to buy my groceries from a number of different stores, mainly based on current sales and promotions

References

http://www.cnbc.com/id/100916844

Amazon online grocery delivery

James Livingstone posted Feb 28, 2018 3:18 PM

Class,

Specialists said the move will constrain territorial supermarkets and online basic supply conveyance administrations to advance up their administration, however won't demolish them. 

"Everybody's diversion simply needs to get more tightly and that fight for the client turns into all the more clear," said Jeff Program, VP of the examination firm IHL. "This is a pristine area we're crushing through here." Rafael Romero, VP of Florida-based CREC's retail division, said consolidating Amazon's conveyance with Entire Sustenances' determination will "totally change the staple amusement," on the grounds that a noteworthy organization, not only an outsider administration, is supporting that conveyance benefit. Others should show signs of improvement, he said. 

Romero said online basic supply conveyance administrations rivaling Amazon can secure themselves by lining up with provincial merchants, as Publix has finished with Instacart. The move by Amazon may even demonstrate the value of these different administrations. Individuals who purchase their nourishment, paper items and crisp create at various stores may stay faithful to a conveyance benefit that can convey from every one of the three, not simply Entire Sustenances. However, Amazon could turn out to be a negative for provincial food merchants. Should Amazon take Entire Nourishments, a top of the line natural basic supply story with a specialty client base, and transform it into a more broad market, at that point Entire Sustenances stores may begin infringing on territorial food merchants' client bases. Both Romero and Program concur this won't be the remainder of Amazon's buys. 

"This is a $13 billion or so wager that Amazon made on retail," Romero said. "It's Goliath wagering on David."

References:

Rossman, S. (2017, June 19). How will Amazon shake up grocery delivery? Retrieved February 28, 2018, from https://www.usatoday.com/story/money/nation-now/2017/06/16/who-amazons-competitors-online-grocery-delivery/403964001/

Amazon market

Lamond Edwards posted Mar 3, 2018 8:49 AM

Class,

    A competitive advantage is not clearly defined as of yet for Amazon. The ability to provided groceries is a great way to establish the Amazon brand but it offers small  margins for profitability.  If amazon plan is to be the best online grocery provider then it has too deal with stiff competition that offers different methods for the consumer to receive their goods. Does the consumer what rapid delivery provided by companies like Instacart or do they want high quality goods  from the likes of  FreshDirect(Margil,2017). The Diversification of online groceries offers many caveats that will suit the needs of a variety of consumers. These differences will make Branding more difficulity as the needs of each consumer will vary.  Cataldo, stated that the plan could be to just make the brand available as to promote orther sales(2013).  Amazon as a internet retailer could benefit from the increase exposure and will likely couple a marketing plans to self promote goods during the grocery deliver.  This could lead to an competitive advantage, as Amazon builds up more brand loyalty.

Publix is my primary grocery store in Florida.  The stores are always clean, appealing, and the staff are always eager to help.   Publix does offer online shopping  as of yet I have not utilized it.  Online grocery shopping will not affect my loyalty or disloyalty to Publix I shop there out of convenience,their atmospheres and friendly staff.  

Castaldo, Joe Sep 26, 2013 A new threat for big grocery: AmazonFresh  Retrieved from http://www.canadianbusiness.com/companies-and-industries/a-new-threat-for-big-grocery-2/

Margil,Elizabeth,15 Best Grocery-Delivery Services That Are Worth the Money retrieved from https://www.gobankingrates.com/saving-money/6-grocery-delivery-services-worth-money/#4