Managerial Economics and Business Administration (mba630) Student Information Name and Surname: Boburbek Khursanov

Managerial Economics and Business Administration (MBA630)

Student Information

Name and Surname: Boburbek Khursanov
Student ID: 582582
Delivery date: 10/23/2022

Case study: AmazonFresh: Rekindling the online grocery market

AmazonFresh was founded in 2007 and has been tested for 5 years. The organization has faced many challenges since the inception of these online grocery forums, but no one in the market has actually achieved widespread success in this market. The company had tested out this food online store in Seattle, and it had experienced significant growth over the previous five years. The company's operational skills and business strategy, which served as competitive advantages against Safeway and Wal-Mart, are highlighted in this situation.

Due to Amazon's engagement in the business, AmazonFresh has two key benefits over other online retailers of groceries a powerful web interface and the possibility of local storefronts. Amazon got an excellent opportunity to increase its online platform because of its online retail experience. Due to its background in the online world, AmazonFresh is able to manage innovative mobile carts, involving automatic upgrading and comprehensive phone applications. Aside from the internet portal, AmazonFresh has an edge over the competition in regard to local options. Customers may request delivery through AmazonFresh from nearby restaurants and shops in addition to Amazon. The amount of customization and closeness offered by other online grocers is limited. Amazon has already demonstrated its proficiency in shipment services, which gives them an advantage in the food industry. It doesn't have much expertise in sending perishables on short notice. Amazon needed its own logistic systems to preserve food at the right temperatures, unlike other internet sellers that depend on FedEx and UPS to deliver goods.
In the online grocery market, AmazonFresh had serious competitors. Competitors have different business strategies. They are:
Safeway - the second-largest supermarket chain in North America. Online order was transmitted to the customer’s nearest Safeway, where pickers filled the order in-store (MCDONALD&CHRISTENSEN,2014).
Wal-Mart To Go - offered a full array of fresh, frozen, and dry packaged items. Ship from store - Online orders could be routed to customers in a store’s vicinity, shortening delivery time and reducing costs via shorter routes and fewer markdowns (MCDONALD&CHRISTENSEN,2014).