Thursday, 18 June 2015

Should Amazon open a physical store?

Amazon.com is a household name, and a massive online success. But it has always shied away from the idea of opening physical shops. However, with the recent expansion of its Locker service (where people can collect things they've ordered online), the setting up of a 'pickup and drop-off' centre at Purdue University in West Lafayette, Indiana, and the acquisition of a 470,000 square foot office block in Manhattan 'primarily' for office space, they're clearly expanding their ambitions.

A recent survey suggested that 53% of people would be open to the idea of visiting an Amazon store on the high street. And Amazon are famous for making low profits, because they put the bulk of their revenue into expanding their market share - certainly going 'offline' would be one way to do that. Maybe physical stores are the next logical step.

So, if they did decide to open a network of high street stores, what would they need to do?

Managing a big change like this would need to start at the top.

Here's what our consultant, Artur Oganov, had to say: 'This would be a huge project. Amazon would need a comprehensive plan with clear goals. They'd have to undertake a thorough analysis of what the physical stores should sell, how many to set up, where they should be and how to make these enormous changes without disrupting their current successful business model. If Jeff [Bezos] is reading this, he should give me a call, and we'll have a chat!'

If you aren't the CEO of Amazon, but still want help with expanding your business into a new area, we'd love to be involved. Get in touch and we'll see what we can do.

1 comment: