Answer 1

Online Grocery Store Store based Grocery Store

Customer-focused readies customer orders Market focused, checks market demand

on demand

Virtual SKUs (over the website) Limited, store-based SKUs

Minimum inventory required for making any Inventory to be maintained for possible sales
sale

Have the right technology to position Little involvement of technology to position

inventory in the right places. This implies grocery on shelves.
lower cost, less fuel burnt and faster delivery

Advertising branded products on its trucks for The price can be easily compared in the
an additional source of revenue online grocery store than the offline grocery

Tie-ups with offline vendors Ranking can be done on the basis of various
rating of different customer

Amazon differentiates itself from its competitors by:

1. Maintained its own warehouse for nationally supplied items (as Amazon.com) but for the
purpose of AmazonFresh, purchased Safeway distribution centres.

2. Took into consideration customer feedback, and incorporated changes as per the same.
Streamlined packaging, delivery nuances of shutting down engines & headlights during early
morning deliveries are some examples of feedback based improvements in delivery mechanism
of AmazonFresh produce.

3. Delivery was complimentary & had multiple delivery options, including next day delivery,
sleep-tight service, pick-ups from retail stores.

Answer 2

Some suggestions for Amazon to expand itself:

● Amazon should try to expand into LA as due to an increase in customer base a proper
test could be done as to whether the Amazon fresh is a good option or not.
● The more tie-ups with the local vendors as with the help of it amazon will be able to
increase the products currently offered.
● The company can try to reduce its delivery time as much as it can and take the only
advantage of the offline grocery store which is right here right now.
● Smaller vehicles can be used for delivery specially for perishable goods.
● Estimated time arrival of the delivery.
● Last-mile delivery to even far of places by increasing distribution centres