A crowded grocery industry is about to become even more congested with Amazon Co. entering the grocery industry. With Amazon entering the industry with the sustainable competitive advantage of already having a well established E-Commerce site, this will put the pressure on other retail companies, such as Wal-Mart and Loblaw’s, to either commence or improve the e-commerce aspect of their companies in hopes of competing with Amazon and to  ensure that Amazon will not have a competitive advantage in the future as E-shopping becomes more common and more popular.

Online Shopping

With technology changing the way customer’s shop for goods, it is important that businesses start strategizing and forecasting for the future. With e-shopping going to grow tenfold in the next 10 years, businesses that do not grow with changes to improve and adapt in order to meet their customers changing desires and wants, may be left behind and become unable to operate.

E-Commerce also has a lot of room for expansion compared to regular retail stores. If done properly, although the operations aspect of e-commerce may be more challenging to maintain, it could provide greater profits than selling the products in retail.

Links
http://www.vancouversun.com/business/Amazon+sell+groceries+online+Canada/9109823/story.html

http://www.theglobeandmail.com/report-on-business/international-business/us-business/amazon-to-take-on-grocers-as-retail-landscape-gets-more-crowded/article15172182/