Amazon Go Is the First Mover in Usa in Checkout Free Convenience Stores, Can It Maintain Its Competitive Advantage in Long Term?

From: Rima Bousaid

Date:10/1/2018

1. Amazon Go is the first mover in USA in checkout free convenience stores, can it maintain its competitive advantage in long term?

Amazon is one of the largest online retailer that started as selling books online, but now it sells different type of item online with lower price. Their operation strategy is to provide customer with different variety of goods and product at lower price to gain customer satisfaction. Being the first mover in the checkout free convenience store, Amazon Go is a new unique idea that hit the market in 2017, where the customer was able to shop and check out without the hassle of waiting in line for a check out. Amazon Go and as it is mentioned in the article “Amazon.com had the same goal to revolutionize the way people consumed in everyday life and would have to the best possible experience”. Amazon been working on this ideas and concept over years. This new idea had provided a new segment and opened potential to the retail market.  Amazon as a first mover advantage which came out with a new idea to the consumer. Amazon Go is about technology and the consumer loyalty, amazon had a played on their customer loyalty. It created a niche for itself by avoid the Red ocean market and made Amazon stronger and more difficult for other competitors to copy the idea, but it also gives them a potential lead in the future. Amazon focused on their customer loyalty which provide them a push and being able to maintain this new idea.  With everything around us is changing and technology is taking over, on the long run Amazon Go will succeed and provide more profit for amazon in general they will be more trust between the consumer and Amazon. They started with three locations in Seattle, San Francisco and Chicago as well.  I believe Amazon Go will do a good hit and many competitors out there will grab the same idea and concept. Like Walmart which is the first competitor for amazon. With this new idea Amazon has advantage more than other retailer has it annual R&D form of Amazon Prime.  Shop and go technology have benefit both for the consumer and to retailers. It gives the consumer the chance and opportunity to control through his/her phone by shopping, and retailer will have more like a showroom and not like the random supermarket will shelves and items being stocked. Amazon Go was build based on the brand awareness of Amazon.com, the checkout free strategy provides the consumer with new and fresh product that satisfied the consumer needs.