Groceries Online

In my Sauder classmate Brandon Kothe’s blog he discusses the launch of Amazon.com’s online grocery store in Canada. Offering up to 15,000 different products with competitive pricing Amazon.com may just gain an edge over its major competitors Walmart and Loblaw’s.

Brandon predicts that Amazon’s transition to the online grocery system will prove to be a success and mentions that it is going to be interesting to observe what kind of impact this transition brings to the market. Although Amazon offers great prices with the convenience of bringing the grocery store to your bedroom, I am concerned whether that will that be enough make people do their groceries online. In my opinion, Amazon has taken an interesting step into a billion dollar market. Although competition is high with the right steps I believe Amazon can change the industry forever. Agreeing with Brandon we believe that Amazon with extensive experience and resources in online retailing the company will have no issue competing against other online platforms however, the concern is how the company will compete with the ridiculously low prices of Walmart.

We both believe that this transition’s effect on the Canadian grocery store market is something worthy of observing in the following months.

Brandon’s Blog Post: https://blogs.ubc.ca/brandonkothe/2013/10/31/first-walmart-now-amazon-looking-at-buying-groceries-online-in-canada/

COMM101 Topic: Competition, Strategy, Customer segments