Amazon Go: Venturing into Traditional Retail By Wiboon (Case Solution – Download Now)

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Pages: 6

Files that you will download:

Word (.docx)

Structure of Solution:

  1. Summary
  2. Porters 5 Force Analysis
  3. The Diamond E Framework
  4. Decision Making Analysis
  5. Implementation Steps
  6. Financials

Elements of Case Solution:

1.Problem Definition:

    • issue development & decision criteria
    • Read first paragraph (or 2); Read last paragraph (or 2); and scan exhibits o Read case and underline key passages

2. Analysis

  • Base Case – Strategy & Assessment (situational size up)
    • i. Base Case Example: Organization under performing vs shareholder expectation & demand change
    • Strategy Example: Value proposition unclear – leaves company valuable to competitive offering; Company believes core activity is innovation but market does not require innovation – refocus around marketing
    • Customers; Competitors; Environments; Company Strength & Weakness; Financial Projections
      • Environment Example: Porter’s 5 forces – new product with lots of copy cats entering market, no clear market share, need a plan to grab dominate market share – market penetration focus ii.
      • Environment Example: High regulator environment means new products take a long time to enter market – company needs to generate cash from current products to generate support for new products
  • Draw conclusions: So What? – This builds the story that becomes the recommendation

3.Alternatives: Mutually exclusive

    • Sometimes a case will have clear alternatives; sometimes not clear and must be defined
    • Decision Trees

4.Decision: Clear and precise – DO THIS

5.Implementation: One recommendation; time frames and resources are key

6.Risk and Contingencies: Metrics and fall-back positions o Metrics: ROI, Profit, Market Share, Staffing Levels, Breakeven Analysis; NPV

Sample of Solution:

Amazon has long been the leader in the online market. With its willingness to enter the offline retail market, many questions stem up. Which primarily lead to the fact as to whether Amazon is even prepared enough to stand and compete in the offline market. Considering that Amazon has only served customers online, the most generic problem would be of transforming the online competitiveness into unique offline offering which may orient around the value-added physical experience of customers and their textural interactions. Although, currently Amazon has the little intrusion of physical stores, but it has strategic core competencies like integrated supply chain, loyal consumer base, innovative marketing and eventually a leading brand image, to realize physical influence. All that Amazon needs to do is focus primarily on its unique integrated value proposition which may distinguish the brand from existing players of the market. Since, physical stores may involve direct consumer engagement, hire people who can efficiently compensate the consumer expectations like that of Trader Joes and Walmart.


Exhibit 1 – Porter’s 5 forces

Threat of new entrants

  • Threat of New Entrants in limited
  • Economies of scale serves as a deterrent for new entrants
  • High initial investment in the stores
  • Maintaining integrated supply chain and distribution
  • Discounted Costs are difficult for the new entrants to maintain


Exhibit 2 – The Diamond E framework

Management Preferences

  • Knowing the resilient leader that Jeff Bezos is there is no doubt that he will try to take the company forward and work towards exploring new dimensions for the company (Amazon Go)
  • However, entire management should be aligned with him behind his vision for an integrated execution
  • While, considering the proactive curiosity of management, it can be realized that management at Amazon would potentially be able to realize competitiveness in traditional retailing


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