Managerial Economics and Business Administration (mba630) Student Information

Strengths - joined the internet market after carefully planning their strategy. Amazon evaluated AmazonFresh for five years before launching it with well-defined goals.
Weaknesses - Shipping internally deliveries is where AmazonFresh places a greater emphasis than doing so for outside orders. This action could lead to unfavorable client criticism.
Opportunities - If AmazonFresh makes its customers aware of its new products through advertising and spreads it more among customers, the company's income and business will increase.
Threats - It could be challenging for the company to find employees with the required skills and experience if there is a scarcity of competent workers in the industry.
One of AmazonFresh's main issues is the extremely low profits in the food sector. The weekly sales of a typical supermarket in 2012 were $450,000, spent $6 million to build, and required $3 million in reconstruction. (MCDONALD&CHRISTENSEN,2014).
“Nearly 40 percent of grocery items (meat, dairy, produce, frozen food) must be maintained at a specific temperature” (MCDONALD&CHRISTENSEN,2014). AmazonFresh must make expenditures in order to maintain temperature and quality control over its products. Extra expenses, for example, the price of purchasing vehicles with refrigerators, are also required to ensure that items are transported within a specific time range. Furthermore, Seattle is the place where AmazonFresh operates. Prior to moving further with the grocery business, it should demonstrate the sustainability of its method and model in other regions.
Customers while shopping online they have choices. They can pick up the purchased products from the Amazon store or ship them from the store to their address. Some customers prefer personally to select products from the store. They think that this will help them to carry the product quality well maintained, and this is a big problem for Amazonfresh.
Here are some recommendations for Amazon to gain a strong place in the online grocery market. First, AmazonFresh needs to come up with new ideas. These ideas may include, for example, meat or milk products. It is necessary to multiply the lines of such products. We may infer that keeping those objects in a plastic container for an extended length of time is difficult. The meat and its packaging might be placed in an insulated container that can keep a cold temperature for a few days to alleviate this problem. By accomplishing this, Amazon would be able to provide its customers more alternatives when making online grocery purchases while also boosting its profits.
Additionally, AmazonFresh may spread its products to all areas rather than focusing on a small number of places. They might be passing up a large number of revenue possibilities as a result. Amazon uses technology to achieve the lowest costs possible (The Business Model of Amazon, 2015). Given that the most of customers already know Amazon as a low-cost company, giving them the option to buy their food online from a reputable company is amazing. If Amazon adopted even a small portion of these suggestions, it would not only outperform its competitors but also boost its income.
Amazon's next move should be, expanding to a different city would be the best course of action. Amazon will be able to market its goods and services to potential customers by establishing a presence in other places. Increasing sales and, subsequently, a company's profits, is one of the finest things you can do. Amazon's brand will be strengthened by this action.




REFERENCES
MCDONALD, CHRISTENSEN, YANG, & HOLLINGSWORTH. (2014, August 15). AmazonFresh: Rekindling the online grocery market. AmazonFresh: Rekindling the Online Grocery Market, 9-615–013.
Internet resources

The Business Model of Amazon. (2015). Retrieved October 18, 2022, from https://www.managementstudyguide.com/business-model-of-amazon.htm


Amazon Global Business Strategy. (2022). StudySmarter US. Retrieved October 18, 2022, from https://www.studysmarter.us/explanations/business-studies/business-case-studies/amazon-global-business-strategy/