Faculty of Business and Economics,

Masters of Business Administration Program

MARKETING MANAGEMENT
(BUSA633)

“Amazon: Merging digital and Physical Worlds for Marketing Growth”

“Case Study Solution”

Submitted to: Dr. Amal Nazzal

Students name:
Nelly Odeh
1195240

Summer Course
 This case is about amazon’s stores that are merging between online (e-commerce) and brick and
mortar (physical stores). And shows that Amazon is seeking to open physical stores despite their success
in e-commerce online shopping that is case’s question, why would Amazon open physical stores while it
has a successful digital realm and a brand name? I see that is because there’re some countries don’t trust
e-commerce that is because of trust concerns about receiving or returning goods. The top five countries
don’t perceive e-shops as trustworthy are Montenegro (20%), Hungary (17%), Spain (14%), Turkey
(13%) and Serbia (12%)1, other reasons; occupation may be an obstacle (for example in Palestine),
occupied territory pays extra payment in order get their package to their homeland; while if they
(Palestinian) put their address in the settlements (Israel) get their package for free. 2 This leads the citizen
to buy from the local online shop. Also, some people prefer to see and touch the product before buying it.
Therefore, they intended to build a brick and mortar stores in consequence, they made a well-known and
successful brand name. Any successful website by 70% if they open physical store their success would
reach 100%.
Amazon is an American multinational technology company based in Seattle, Washington. Amazon
focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence. It is considered
one of the big four technology companies, along with Google, Apple, and Facebook. It has been referred
to as “one of the most influential economic and cultural forces in the world” as well as the world’s most
valuable brand.3

Amazon was founded by Jeffrey Bezos in 1994. Bezos started operating the business from a small
office in Seattle and the website was launched on the internet in 1995, Amazon’s mission is to be Earth’s
most customer-centric company. 4 The main focus of Bezos was to change the experience of buying
a book from the internet with a more enjoyable service. Amazon is guided by four principles:
customer obsession rather than competitor focus, passion for invention, commitment to
operational excellence, and long-term thinking. Amazon is going back to the future, launching a
brick-and-mortar grocery store as part of a strategy aimed at expanding its small physical retail
presence.
Amazon has four physical stores, they are known as 1) Amazon books, 2) Amazon 4-star, 3) Amazon
go and 4) Amazon Hub locker. Amazon books are the first stores opened in 2015 and owned by online
retailer Amazon. Amazon 4-star is a store designed to help customers discover products they will love.
It's a physical store that carries a highly curated selection of products from the top categories
across amazon.com including devices, consumer electronics, toys, games, books, kitchen, home, and
more.5 Amazon Hub Locker is a secure, self-service kiosk that allows you to pick up your package at a
place and time that’s convenient for you.

1
https://www.forbes.com/sites/ninaangelovska/2018/10/23/6-reasons-why-europeans-dont-shop-
online/#26d02f372869
2
https://www.aa.com.tr/en/economy/amazon-reverses-shipping-policy-on-palestine-ministry/1754320
3
https://en.wikipedia.org/wiki/Amazon_(company)
4
https://ir.aboutamazon.com/officers-and-directors/default.aspx
5
https://www.amazon.com/amazon-4-star/b/?node=17988552011#:~:text=Amazon%204%2Dstar%20is
%20a,kitchen%2C%20home%2C%20and%20more
 Let’s now talk and focus on Amazon Go is a chain of convenience stores in the United States
operated by the online retailer Amazon. The stores are partially automated, with customers able to
purchase products without being checked out by a cashier or using a self-checkout station. 6 In another
world, Amazon Go is a major step for the e-commerce giant, in both pursuing brick-and-mortar
retail and advancing computer vision and machine learning to create a shopping experience with
no lines and no checkout. The absence of checkout lanes and cashiers at Amazon Go stores has
captured plenty of media attention.7

The Methodology Plan of the paper:

A general introduction about Amazon and their physical stores, and a brief summary about
amazon’s executive then I’ll focus on Amazon go in this paper.
This paper will include a first summary about Amazon go, secondly, analyze the problem and
opportunity in this section will concentrate on competitors of Amazon go, SWOT that is
(Strength, Weakness, Opportunities, and Threats) to Amazon Go, and strategic actions. Thirdly,
is about the solution to these problems and statement. Finally, the recommendation and the
references.
Analyzing Methodology of this paper:
Amazon’s competitors:
“Amazon’s isn’t alone in this race to roll out unmanned doors. Three competing cashier less
mini-markets launched within a month in San Francisco, including Standard Cognition, which
actually beat them to opening. Meanwhile, on a global basis, they’re competing with everyone
from China’s Alibaba to South Korea’s Lotte”.8
Amazon Strategic actions:
Opening physical stores is one of amazon’s strategies that could provide online customers with
an easy and convenient option to return their purchases in-store. Both Amazon and its customers
would benefit from the added convenience.
Amazon GO SWOT Analysis:
Strengths:
1) No Checkouts
2) Grab and Go
3) Brand Name
4) Loyalty Customers

6
https://en.wikipedia.org/wiki/Amazon_Go
7
https://iveybusinessjournal.com/analyzing-amazons-move-to-get-physical/
8
https://thecurrentdaily.com/2018/10/24/amazon-go-competition-automated-stores/
Customer loyalty is one of the most over used phrases in business today. Amazon ranks a high
on the list of customer loyalty at rate of 68% that is because of its ability to get the customer the
right result and the right product on time without any delays as the customers wish for.9
Weakness:
1) Possible loss of jobs
2) Costly tech maintenance
3) Consumers need to be cognizant of the privacy rights they may be giving up in the
process. Tech-enabled stores of the future may leverage video capture, facial recognition
and other biometrics.
Opportunity:
1) Innovate in a new area of commerce
2) Opening more physical retail
Threats:
1) Security vulnerabilities and evolving fraud schemes, such as the return fraud, as well as
the privacy rights consumers may have to relinquish for the sake of convenience.
2) Hackers and fraudsters are quick to exploit weak links in new technology.
Amazon already has a strong reputation with consumers, and brick-and-mortar stores can
strengthen that perception.
Solutions: Amazon will need to take steps to address those security vulnerabilities when scaling
its new shopping experience. Amazon need to keep their consumer’s data safe from hackers from
increasingly sophisticated attacks.

9
http://www.divaportal.org/smash/get/diva2%3A561578/FULLTEXT01#:~:text=Thanks%20to%20its%20ability
%20to,get%20them%20the%20right%20results.