Reference no: EM132474904

This case study focuses on enterprise considerations when entering into new sales modalities. Retail shopping models had long been considered binary - either e-Commerce or brick and mortar. In practice, the retail industry involved a long spectrum with pure e-Commerce on one end and pure brick and mortar on the other end. In between, many different models were emerging like ordering online and picking up in-store (Walmart's Grocery Pickup), shopping in-store and ordering online (Warby Parker and Bonobos made their name in this space - largely facilitating the showrooming and webrooming) behavior of consumers), digitally-enhanced physical shopping (several companies hold patents in this space with virtual reality promising to push this model), and many others. By 2019 Amazon, was the world's most valuable online retailer at around USD1 trillion (USD). So, when the company announced the purchase of Whole Foods and further committed to the expansion of Amazon Go store locations many questioned the strategic value.

• Why would a company so clearly successful in the digital realm (Amazon) seek to enter the more traditional brick and mortar space (by purchasing Whole Foods)?
• Should Amazon have bought another company like Food Lion, Giant Food, Trader Joe's, Wegmans, or Harris Teeter? Why or why not?
• Amazon has recently been test-marketing 'cashier-less' stores where consumers can shop and then use their smartphones to pay without using any cashiers. Is this a good idea? Why or why not?
• One of Amazon's marketing innovations is called Sample Boxes. How does Amazon benefit and how does the shopper benefit?