For the past two weeks, Amazon’s been busy announcing an aggressive expansion into bricks-and-mortar retail. Take for example its recent announcement of plans to expand Amazon Go, an automated convenience store chain with 3 locations in Seattle and 1 in Chicago. The tech giant plans to open 3,000 more locations nationwide by 2021. A week later, Amazon unveiled ‘Amazon 4-star’, a physical store that features well-reviewed items that local consumers love. They will open the first location in New York City.
As tech giants like Amazon enter the B2B distribution sector, traditional companies have responded with two broad strategies: digital innovation, and mergers and acquisitions. But those two terms cover a breadth of activity, not all of which will be equally helpful in competing with Amazon Business. The success of either approach depends heavily on how deeply a company understands the nature of Amazon’s threat.