Strategies for Amazon's Successful Offline Retail Expansion

This report provides a comprehensive analysis of Amazon's strategic shift towards offline retailing. It delves into Amazon's resources and capabilities, including data collection, skilled personnel, and competitive drivers that contribute to its success. The report explores the advantages of offline retailing, such as one-on-one customer connections and the development of trust, while also acknowledging the disadvantages, such as limited choices and higher costs. Furthermore, it examines the role and expectations of consumers, social responsibility, and the importance of producing quality products. The analysis concludes with an assessment of the strategies Amazon needs to implement to ensure a successful transition into the offline retail market, considering both the opportunities and challenges involved in this expansion.

THE SUCCESS OF AMAZON GOING OFFLINE RETAILING
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Contents
Executive summary.........................................................................................................................3
Introduction......................................................................................................................................3
Amazon resources and capabilities..................................................................................................4
Amazon capabilities.....................................................................................................................4
Data collection..........................................................................................................................4
Amazon Resources.......................................................................................................................5
Skilled personnel......................................................................................................................5
Competitive drivers.........................................................................................................................6
Advantages and disadvantages of offline retailing..........................................................................7
One on one connection with customers.......................................................................................7
Identification of personal touch................................................................................................7
Disadvantages..................................................................................................................................8
Lesser choices..............................................................................................................................8
It’s expensive............................................................................................................................9
Role/ expectations of consumer.....................................................................................................10
Social responsibility...................................................................................................................10
Producing quality products.....................................................................................................11
Conclusion.....................................................................................................................................12

Executive summary
Being able to make the decision whether to open a physical shop or sell online is a
difficult task for an entrepreneur. On the other hand, it’s basically a critical decision that one
makes, while starting a business. This is because the level at which one interacts with his/her
customers is different in the two platforms. To clearly understand the differences, below are the
definitions of both online and offline retailing.
Online retailing basically involves selling products through the online platforms that
allow organization to advertise and store their products and services without a physical store. On
the contrary, the offline retailing involves selling of services and goods at a shop.
Amazon being one of the largest online retailers is looking into the methods and ways to
use to go offline. This involves putting into place strategies and mechanism that will help the
offline business to become a success.
Introduction
This paper will analyze the strategies that Amazon needs to put in place so as to operate a
successful offline retailing business. To clearly understand this, we will look into the Amazon
resources and capabilities to achieve this change. The resources are the things that the company
has that have helped them thrive in the online business. Examples include good data collection
methods, skilled employees, and quality products among others. On the other hand, the economic
drivers are the things that have made Amazon succeed in their business. Lastly, we will address
the roles and expectations that its customers have and what it has been able to achieve.
Amazon resources and capabilities
These includes the assets and strengths that the company has over its competitors.

Amazon capabilities
Data collection
Amazon being one of the global companies is able to collect data from the customers which they
use to make critical decisions. The collected data helps them to make decisions that are used to
make and produce products that their customers have proposed. More so, this being an advanced
company in the use of technology, they are able to collect accurate data in terms of the
consumption rate of certain products that help them in the number of items to manufacture to
avoid wastage (Erazo, 2016). Therefore, the collected data can be used constructively to make
important decision on the offline retailing. For example the data can help in identifying the target
market of the goods and services that Amazon produces and areas in which that require market
expansion.
Controlled shopping behavior
Since the buying and selling is done online the company is able to monitor the sales and
purchases of their goods and services, which makes accounting for the goods and services easier.
Doing online retailing one is able to do other businesses and still do online selling as a part time
job. This has greatly improved the online business since one is able to earn more income
(Ringbeck, Seeberger and Huchzermeier, 2019). By engaging on fulltime retailing Amazon will
make more profits and sales as they have been able to fully understand and appreciate their
customer’s behavior. In addition customers will be able to get the goods instantly once they pay
for them.
Product improvement
Amazon having been in the industry for so long have gathered essential information that
they can use to start offline retailing. The feedback collected will be used to make the
improvements that the customers have requested. Product improvements helps to capture more
customers and make more profits in the long run. In the offline retailing business improved

products will create more personalized customers touch unlike the online retailing. Quality
products also acts as a marketing strategy where more customers will be on boarded in the
company goods and services.
Trust
The physical shops creates trust unlike the online retails which don’t engage the
customers on a one on one basis. If the Amazon company goes offline it will be able to reach out
to many customers unlike when they operate online. Trust is thus developed more effectively
during a face to face conversation unlike the online chatting. When trust is developed more
business will be expected to come from these customers which will have a positive impact to the
company.
Amazon Resources
Skilled personnel
Skilled labor will help and has greatly played a role in how employees are able to market
their goods and services not forgetting the strategic decision that they make to support the future
plans of the organization (Amazon.com, 2019). From the top management, Amazon has been
able to employ the best who are able to work well as a team with a goal of satisfying their
customers. The company is also known to be one of the best employers globally, who offer
proper remunerations to their employees in order to motivate them to offer quality products and
services.
Warehouses
If Amazon goes offline it requires a lot of building in order to reach out to the globally
diverse customers that are spread all over the world. Although, it’s an expensive process to hire
or build warehouses this is a one of the costs that the company can end up benefiting from in its

entire existence. In addition structures like building and machines that will be acquired during
this process can be used as loan securities when the company faces some financial challenges.
Competitive drivers
These are the things that Amazon does that make it stand out from other competitors.
Hence these things gives the company credit among many others. When the company goes
offline these will be some of the advantages that will help the company thrive.
Creating employment
Unlike an online shop a physical shop creates more vacancies that require human beings
to run them. On the other hand, the online platforms are operated by few people with the help of
machines. Therefore, the offline business plays the critical role of being socially responsible to
the surrounding communities where the business operates. In the long run this makes people in
the surrounding to appreciate and love the products sold by Amazon Company.
Improved security
Online shops are prone to thefts unlike the physical ones, where one has to pay cash for
goods and services before accessing them. In the recent years, advancement in technology has
put on the risk the people that use online sites where information provided by the customers
while buying goods and services is used by hackers to defraud them. This is not the case in the
offline retailing as the customers information is treated with great privacy.
Easy payment
In the offline shops customers are able to access the goods and make payments unlike the
online ones where one has to follow a certain process. Considering that many people are illiterate
in the Economy Amazon will benefit from introducing offline shops that accept cash payments
or easier methods of paying (Park and Pan, 2019). Easier methods of payment will thus, be able

to cater for both the old and the young as some people are technologically left behind than
others.
Encouraging impulse buying
Women are known to buy without planning hence, Amazon will benefit as they will
make more sales from this. This creates more sales and profits to the company as people buy
unplanned goods and services. One of the major benefits is the ability to even sell the dead
stocks that seem as wastage to the company.
Large customer base
By offering and opening shops at the customers door step many people who could not
have the chance to access these goods will be able to do so. Thus, Amazon will increase their
sales and customer base.
Advantages and disadvantages of offline retailing
Under this subheading we will look at the benefits and negative effects of engaging in an
offline business so as to conclude whether Amazon should shift their services to offline retailing
or not. Although both online and offline retailing have positive and negative impacts, Amazon
Company should use in order to make a decision on what retail to business to engage in.
One on one connection with customers
The offline stores offers both the customer and the seller the chance to interact which
gives the customer some satisfaction. Additionally, the one on one interaction creates some trust
due to the facial expressions that are involved (Scarpi, Pizzi and Visentin, 2014).
Identification of personal touch
When a customer goes into a certain shop severally, the owner is able to identify the
customer needs and wants. This makes the customer to feel appreciated and respected hence, a
customer may end up to buying at a particular shop many times. More so, the retailer is able to

fully understand the customer’s likes and proposes goods and services that will appease him/her.
On the other hand, the customer is able to gather firsthand information of the good or service
from the owner/retailer before buying.
Checking goods instantly
When there are new arrivals the customer is able to view them and touch them, as it’s
well known that people like to make decisions to buy after seeing and touching. Most
importantly the customer is able to try the goods before buying, meaning he/she buys what
pleases him/her and less complains and returns will be witnessed (Fun and Easy Ways to Use
Social Media, 2016). Online retailing does not allow this since, customers are not able to order
and view the products before buying.
Using instantly
The offline stores offers the customers the ability to use the products and services
instantly without waiting after buying. This is not the case in the online retailing, where a
customer has to order and wait for the order to be delivered before using. Thus, this is a
convenient way to buy goods and services as one is able to use them instantly without waiting.
Disadvantages
Lesser choices
One of the greatest challenges in the offline shop is the limited space to store several
goods and services as compared to the online retailing which can store several goods and
services (Koschmann and Isaac, 2018). Thus, customers end up preferring the online shops that
offer unlimited goods and services. Basically, customers want to try many goods and services
before making the decision to buy. Offline retailing therefore requires a lot of capital and
infrastructure so as to build or hire ample space to showcase the goods and services available.

It’s expensive
Offline retailing incurs the cost of storing, electricity, and other costs that are considered
in making the decision on the prices to sell the goods and services. Thus, offline retailing goods
and services is more expensive as compared to the online one, where no costs of warehousing or
electricity is involved. In addition, the online shops are able to offer discounts which don’t exists
in offline retailing due to the high costs of running warehouses. More so, offline shopping
involves travelling in order to be able to access the goods and services that one requires.
Time consuming
Offline shopping calls for one to physically go to the shops which can be tiresome and
time consuming, while in the online shopping one is able to order for goods and services at
his/her comfort zone. For the busy people they are able to buy goods and services, while they
still engage in other activities.
Economic drivers
These are the strategies and habits that Amazon have put in place which have helped
them succeed in the online retailing business. These are the strengths that the company will
employee in the Offline retailing to help them grow (Design, 2019).
Efficiency
One of the competitive advantage that Amazon has been able to put in place is efficiency
in their operations. This starts from ordering and customer enquiries. Compared with others the
company delivers their services and products within a shorter period. Customers want companies
that give them full attention, and one that will deliver the goods as quickly as possible. When
Amazon introduces physical shops it will be like a dream come true having been able to deliver
on the online platforms. Physical shops will guarantee quick and timely delivering as customers
will be able to have the goods once they pay.

Low prices
Since Amazon operates online their prices are low compared to others. This has been able
to attract many customers as people are greatly attracted by low prices. Having been able to win
many customers Amazon will be advantaged when they go offline, since customers will already
have known them. Large scale selling due to the many customers, may allow them to still
continue offering discounts to their customers. Amazon has been able to use the theory of
application and optimization. This is possible by them being in a position to sell at low prices,
and they have used this to their advantage.
Targeting strategies
The company has been able to identify their target markets and thus, produce goods and
services that their customers need. In addition, Amazon has gone global by conducting research
before releasing their products (Bhasin, 2019). This has resulted in more sales as compared to
other companies which have not identified their targets.
Unique marketing strategies
Amazon has penetrated the markets by choosing marketing strategies that reach out to
many people. These includes the Facebook, newspapers, television, radio among others. These
strategies are accessible to many people depending on their levels of income.
Role/ expectations of consumer
These can be defined as what the consumers and customers want the company to do for
them in return. They act as a marking score of how customers’ needs and expectation have been
achieved. Thus, the business should work hard to ensure they play their roles and that they fulfill
the customers’ expectations (Drrger, Lamla and Pfajfar, 2013). These roles and expectation have
been discussed in detail below.

Social responsibility
Customers and the surrounding communities expect that any successful business has to
be socially responsible in the areas that they exist. This goes a long way, to getting involved in
community activities that bring development to the people. Amazon being a successful company
is expected by its customers to help and develop in the areas that they exist. More so, the
companies should go an extra mile to caring for the environment by making sure that the wastes
they release don’t harm or pollute the environment.
Producing quality products
Everyone expects to buy and use quality products that meet the health standards. Amazon
has an obligation to ensure that the products they produce are of the right quality and quantity.
Quality is one of the marketing strategies as customers are willing to pay more for quality goods
and services. Additionally, through quality one is able to win the customers trust and royalty and
they will always come for the goods and services (MIT Sloan Management Review, 2019).
Creating employment
Amazon is expected to play a vital role in absorbing the young people in their production
processes. This will in a big way encourage creativity and innovation as the young people have
the energy and ambition to achieve big. Since the youth comprise the biggest portion in the
society, offering them employment increases the general ability for people to buy goods and
services. Thus, Amazon will sell more goods and services as many people will have the buying
power.
Comply with the government rules and regulations
Basically the government is involved in monitoring and regulating the products and
services that are provided to its people. Amazon being a successful business is expected by its
customers and consumers to comply with the regulations set by the government among them

paying taxes (Chan, 2011). Taxes play a vital role in running the government and through them
the government is able to provide roads, energy, drugs, and water that are basic to its citizens
Availing the products
Amazon customers expect them to be in a position to avail their products to them for their
use. This ensures that the company is in a position to meet their demands and with the right
qualities (Vinten and Jordan, 2016). Hence, Amazon should ensure they have put in place
strategies and mechanisms that will ensure that customers access the products within their areas
of reach.
Good customer service
Every customer expects to be treated in a respectable and honorable manner. Thus,
businesses should put the customer needs first and strive to fulfill the customer expectations.
Amazon management should therefore monitor and supervise their employees, to ensure that
they offer good customer care services (Hannam, 2017). An example would be refunding money
for goods delivered which don’t meet the set standards.
Conclusion
In conclusion, this paper analysis the strategies that Amazon Company intends to
implement and use so as to go offline retailing. Although, both online and offline retailing have
their advantages and disadvantages, offline retailing provides personal touch to customers which
builds trust and connection. Additionally, offline retailing offers goods instantly when the
customers pays for them, unlike the online retails where one pays for the goods and waits for
them to be delivered. The role that the business plays and what the customers expects are points
that have been fully discussed to ensure that the report addresses customers’ issues well.