Peer Blog Commentary,

The blog post by Fion Yu was interesting to say the least. She wrote about Amazon extending its sales and delivery services to even groceries in the UK, trying to establish a new market for online grocery sales and providing one hour delivery service. I would like to add a few of comments of my own.

I find the point she raised about being there physically and choosing products to be a very good one. Customers enjoy extra value by being at the supermarkets themselves because they can choose the better item: ripe fruits, milk with later expiry date etc. However, despite how much of an advantage that would be, I believe that having a system in place that can help you make the best decision virtually is highly unfeasible at this stage of market expansion.

guarenteed-delivery

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Having said this, I think that the Focus Strategy (differentiation) Amazon is adopting  to enter the UK grocery market is a great choice for a well-placed niche.  Despite selling only generic everyday necessities, their service targets a very specific group of people who are too lazy/busy to go shopping themselves, while increasing the price for faster delivery eg. Amazon Prime costs $99 annually, one hour delivery services costs $8. It is rare to see a Focus strategy intent on differentiating their own services for mainstream products, and it is one worth looking up to.

 

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