Can Amazon Change the Way We Do Business?
9/14/17 At a recent meeting of The Presidents Forum, we talked about Â the industry power that Amazon wields. Amazon can change the strategy of many players in the retail sector even those who are not direct competitors. They have also changed the buying habits and the way consumers research and purchase products. This wide-ranging power was demonstrated recently after their purchase of Whole Foods. Last week, Target announced major changes in strategy, with a news article stating “Target slashes prices on thousands of items, shares falter. The retailer, which said it would continue to offer discounts on some products in addition to the price-cuts, added that it had also eliminated more than two-thirds of its price and offer call-outs.” All in response to Amazon. This made for interesting discussions at the table on who holds the bargaining power for our companies; customers, suppliers or a big player like Amazon. What lessons are there for all businesses? Most important is the need to maintain competitiveness and that means innovate, constantly changing the way we do business, the products and services we offer and improvements in customer service.
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