Reference no: EM133015110
In June 2016, Amazon India (Amazon) had entered into a partnership with 40 Vodafone India (Vodafone) stores, situated in Bengaluru, India, so as to increase its offline presence in India. This strategy was considered to be part of Amazon's plan to localise its offerings and lure more customers who were not willing to shop online. Some of the smartphones which were exclusively sold on Amazon's website included OnePlus 3, which would be particularly highlighted in these Vodafone stores to attract offline customers. Other best selling smartphones which would be exhibited at these Vodafone stores to generate more 'buzz and excitement' included Lenovo K4 Note, Moto G4 Plus, Redmi Note 3 and Coolpad range. These offline stores would have a specially trained product expert from Amazon, who would assist and guide customers and help them physically experience the smartphones. However, there were several challenges that these online retailers like Amazon could face while setting up brick & mortar stores. Some of these challenges included encouraging people to visit an offline store which required a different approach; the location of the store, which played a crucial role in driving footfalls to the point-of-sales; the huge cost of renting or purchasing a space for opening a permanent retail location; managing the inventory level versus cash flow; assuring even demand on both online and offline platforms; etc. Amidst this scenario, would it be possible for Amazon to attract more offline customers through the tie-up with Vodafone? What are the challenges that online retailers usually faced while setting up or partnering with brick & mortar stores?
Describe the basic Amazon model and the Vidofone introduced in India
Why did they introduce the new model? And why in India?
Describe the most dangerous competition for Amazon in India back then. Explain.
What were political, social-cultural, economic and technological factors could be considered as restraining forces for this tie up success