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Problem Statement

Amazon Go case discusses about the company’s decision to enter offline retail

markets and the competition in this industry. In this report, we will briefly summarize

Amazon Go case, analyze the industry based on internal and external circumstances using

SWOT Analysis along with focusing on VRIO Analysis and The PESTEL Model.

Additionally, our group will also give important emphasis on the issues about 1) How could

Amazon replicate the competitive advantage that contributed to its online success in the

offline retail markets 2) Resistance that Amazon face from store employees and unions

during potential job cuts.

Summary Inc is one of the leading global online retailers offering wide range of

products from books to electronic products. The company’s business model was aimed

towards the assumption that retail businesses were growing in online platform. However,

considering the company’s strategy of being customer-centric and innovative, Amazon

decided to venture in traditional retail and launched its first Amazon Go store in United

States. Both Amazon and Amazon Go comes up with a goal to revolutionize the way people

consumed in daily life along with proving the best customer experience.

Amazon Go is a unique store concept that has removed the checkout process from

retail store experience. With this idea, consumer can just grab and go as the store developed a

technology that detects when the products are taken from the shelves. After consumer has

done shopping, the purchasing information will be transmitted to their Amazon accounts and

all the purchased items are charged directly from here. Although this new kind of store cuts

the needs for human cashiers, the company still demands employers to physically being in the

store and monitoring customers.

As a newcomer in offline retail store, entering this segment can put the company into

a riskier position due to the insufficient knowledge in managing physical chain store but at

the same time, this can also be seen as way of generating more profits to the company as

well. Through the customer-focused and innovative approach, Amazon could retain its online

success in Amazon Go.