Over the years, Amazon’s online marketing strategy incorporated in 1995, has had huge impacts particularly on the conventional retail stores, this is due to the fact that amazon’s strategy changed customers perception as well as behavior with regard to shopping as most customers turned to the internet as a tool for shopping due to its biggest perk; convenience. As a result, today most people prefer shopping on Amazon as it considered as the most customer-centric online store where customers can find virtually anything they would like to purchase (Amazon Video Case 12, n.d.).
Some of the advantages that online stores have over companies that use the brick and mortar department stores include the ability to sell a large variety of products from different fields such as clothing, beauty, and books a feature which most department lack. Other advantages of online stores include increased global access on a twenty four hour basis, concerning this online selling allows retailers to sell merchandise to customers in every global region without incurring additional expenses as a result, e-retailing business are able to expand into various global markets while targeting segments (Amazon Video Case 12, n.d.). Availability of customer reviews on online store’s website also helps online companies sell better. Moreover, online stores; unlike the brick and mortar department stores also benefit from cost saving brought about by reduced overheads, as a result of the reduced costs, these companies are able to provide their merchandise at low prices which is one of the major competitive advantages.
On the other hand, one of the key assets that the “brick and mortar” department stores have over the online stores is their physical presence whereby, customers can easily go to see and consequently feel products, customers do not incur shipping costs. In addition, they also provide customers with an opportunity to engage with product experts on site.
Brick and Mortar Retail Stores Response to Online Competitors
One of the ways in which the brick and mortar retail stores are responding to online competitors is by investing heavily in e-commerce. An example is in the case of Walmart, today, apart from expanding its physical stores in the US, the company is actively improving its mobile apps while at the same employing strategies such as scan and go, crowd sourcing, and ship from store. The company has also significantly expanded its online grocery sales to more areas. Other measures adopted by physical stores include offering a variety of products on their online websites such as in the case of Costco as well as providing customers with subscription services as seen in the case of the company Sam’s Club.
Whether Or Not an “Even Playing Field” Can Be Achieved
Local retail shops may never be on the same, or rather on an even playing field with online merchants offering similar products. This is because all retail shops would need to establish online stores and also develop the ability to store mass inventory while online merchants on the other hand would need to establish physical store; capabilities which most online merchants and local stores lack. Moreover, given the rise in technological advancement, many people now prefer shopping online as opposed to physical stores for convenience and low cost purposes. Therefore, if online can deliver their products more quickly they would ultimately gain more popularity as delivery time is one of their biggest hurdles.
Amazon’s Provision of Managed Logistics Services
By developing more technologies for both shipping and logistic methods, the company is looking beyond the simple retail shopping to providing other firms with managed logistics services. Concerning this, the company uses its cost effective layout; thus, in their warehouses, automation and use of forecasting software that enables the company to communicate more accurate delivery dates as well as the adoption of the green technology for shipping methods some of the ways in which the company the company is providing managed logistic services to various companies.
Explain the Passage “Plans fail for the lack of counsel, but with many advisers they succeed” (Prov. 15:22 NIV.
The Bible verse can be interpreted to mean that Christians need to seek the advice from many advisors, consequently not relying on the counsel of a single person. Therefore, when engaging in important decisions one should not only seek Christ for guidance but also from trusted individuals. Therefore, when it comes to business organizations before making important decisions that affect the business it is essential to also seek council from major stakeholders to ensure that the decision made is appropriate and beneficial to the company.
Reference
Amazon Video Case 12. Delivering The Earth’s Biggest Selection: Amazon Video: Delivering the Earth’s Biggest Selection (n.d.). Retrieved From: http://www.viddler.com/embed/89fd8c9b
