I support that some companies may end up closing down if they try strategies like the ones applied by Amazon. It was founded 13 years ago and thus has gradually grown to what it is today. The fast and free delivery requires a firm that has a lot of sales so that it can utilize the economy of sales in the delivery process. Companies such as Brick and Mortar suffered losses due to many expenses that are incurred if the sales are less. Furthermore, I agree with the idea that the majority of the citizens appreciate free delivery rather than charged fast services. However, delays may make the customer have inconveniences in his or her planning. Therefore, Amazon has incorporated both free and fast process to meet the needs of the clients. The process has been successful after the company acquired Whole Foods and uses its warehouses to store the delivery of goods (Mims, 2018). Any company that delivers its goods may incur warehouse costs if it does not own one.
Companies such as Walmart and Target have also started the two-day shipment strategies. They have a slight difference since they operate their stores and do not only rely on online sales such as Amazon which only maintains warehouses, sorting and distribution centres. UPS and FedEx have applied strategies that could ensure that the products are delivered to the clients with the shortest time possible. FedEx has been used to supply especially on Saturdays since UPS does not deliver during the weekends (Dolan, 2018). I support the argument that Walmart as a high possibility to unseat Amazon. Walmart has many outlets and thus can be accessed by many customers.
I support that good market research needs to be done before an E-commerce platform is established. The market needs have to be checked and ensure that the platform established will satisfy the clients. Also, I agree that a company should use social media platforms to ensure that their website has enough traffic for sustainability. Furthermore, the websites need to be regularly checked to ensure that the clients and companies are safe.
Dolan, S. (2018, July 13). How consumers rank the top delivery services in the US - and how they stack up against the growing threat of Amazon. Retrieved October 03, 2018, from https://www.businessinsider.com/consumers-rank-the-top-us-delivery-companies-against-amazon-2018-7
Mims, C. (2018, Sep 20). The prime effect: How Amazon's two-day shipping is disrupting retail; the quest to offer fast, free delivery has triggered an arms race among the largest retailers. Wall Street Journal (Online) Retrieved from http://ezproxy.emich.edu/login?url=https://search.proquest.com/docview/2110053513?accountid=10650Response to "Discuss the impact of Amazon 2"
I agree with the argument that Amazon has the ability to distribute the products free and within a short time. The strategy has been appreciated by the customers and thus increased the sales done by the company. Many companies experience a decrease in the number of customers due to the delay of the products ordered. Customers expect that other companies should learn from Amazon and ensure that the goods are delivered to them and within a reasonable time (Mims, 2018). Additionally, a lot of pressure is exerted on retail companies who are not required by their clients to deliver the products at the doorsteps. For instance, the food industry has been trying to offer delivery to the clients with the aim of increasing sales and ensuring customer satisfaction (Taylor, 2018). However, I believe this may not be successful since it is expensive to deliver small quantities.
Walmart has applied a good strategy to offer a day free delivery to goods above $35 and labelled for free delivery. The strategy has focused on the goods that are fast moving to ensure that the economies of sales are utilized. Target has issued introduced a REDcard which could ensure that the clients have their delivery free within 3-5 days. I believe that FedEx and UPS may face a lot of competition since they may only be left with the delivery of the sensitive products. I agree with the argument that Walmart is the closest competitor to Amazon. It has a lot of, but it needs to improve on its online platform and sales to ensure that it is a one-stop shop.
I agree with the argument that a business needs to have a good plan before establishing an E-commerce platform. A SWOT analysis needs to be done to strategize on how the competitors will be defeated. Furthermore, a vision and mission should be established to ensure customer satisfaction (Laudon, & Traver, 2018). However, I recommend that a technical department to be established in a company that has E-Commerce to always that the platform is working.
Laudon, K. C., & Traver, C. G. (2018). E-Commerce: Business. Technology. Society. Pearson.
Mims, C. (2018, Sep 20). The prime effect: How Amazon's two-day shipping is disrupting retail; the quest to offer fast, free delivery has triggered an arms race among the largest retailers. Wall Street Journal (Online) Retrieved from http://ezproxy.emich.edu/login?url=https://search.proquest.com/docview/2110053513?accountid=10650
Taylor, K. (2018, May 14). Fast food is in the middle of a delivery revolution, and it's terrible news for some chains. Retrieved October 1, 2018, from Business Insider: https://www.businessinsider.com/fast-food-chains-that-deliver-2018-5
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