(3.1) Explain the key facts/background/general business concept/model of Amazon Go?

(use
1 slide only for this question)
Key facts

 No lines, no check out, no registers

 You won’t find any shopping carts
 anything you pick up is automatically added to your virtual cart
 hundreds of small cameras are always watching you
Background
The Amazon Go was launched on January 22, 2016. Amazon Go is a convenience store
that requires no checkout required. It is the worlds most advanced shopping technology
so customers will never have to wait in line. The store is located in seattle right near the
amazon campus. The experience is designed for those who do not like to stand in a checkout
line. Amazon benefits by eliminating the cost of checkout personnel. Customers use an Amazon
Go app and scan their I-phones on entering the store. Sophisticated technology tracks their
purchases, allows them to exit the store without a physical check-out, and automatically charges
their account.
Business concept
Amazon Go concept is to reduce friction in the in-store customer experience. amazon is
positioning its new store as a “neighborhood market”. Amazon hopes to get customers
homes and it stores will offer different cheaper products. What Amazon gets right is
properly identifying customers and cutting down on the time it takes them to move
through the customer journey.

(3.2) What gaps/opportunities/problems does Amazon Go aims to address vis-a-vis doing

business in the retail/shopping industry?
Gaps

 Quick access to everyday products, especially groceries and convenience goods

Opportunities

 worlds most advanced shopping technology

 Advanced technology and computer integrated inventory management systems

Problems

 eliminate staffcustomer interpersonal communication

 eliminate jobs
 It’s highly complex
(3.3) Based on the video, identify (as many as you can) the various systems, applications,
technologies, tools, processes, strategies, and product/service design that were needed to
make this Amazon Go concept feasible especially on the following focus areas:

(1) Consumer Demand Management;

Consumers’ habits have changed dramatically especially in today’s generation. And grocery
chains have not necessarily kept up. That is why the Amazon Go used the mobile technology to
provide to consumers' demand for convenience serves as an example for retailers to follow.

(2) Inventory Management;

The advanced technology and computer integrated inventory management systems of Amazon Go
enable the customer to take products off the shelves, put them in their carts, and leave the store
without going through a checkout line.

(3) Customer Satisfaction/Experience Management;

Nobody likes waiting in line at the checkout counter, also it takes time for the consumer to wait
to pick up their orders, therefore, the Amazon Go is the most comfortable shopping experience
of all time. Consumers will have increasing choices on when, where and how they can do their
grocery shopping, which can only be good for the consumer. Amazon will fill customers’ needs
for faster checkout and time savings.

(4) Safety & Security,

The amazon go also make sure the safety of every customers especially their store. They come
up on the ideas of securing the safety of everyone. Inside the store, there are a lot of cameras in
place and shoppers are always being watched by at least one of them. The combination of
camera and sensors keep track of where the items are located, and to be able to track and
identify a person and picking up various items, even multiple items at a time, in a busy store. this
is their strategy to avoid steading at the store.
(3.4) Do you think that the overall business benefits gained from the technology/systems
investments in this Amazon Go project far outweigh the costs? Explain
In my opinion. They spend a lot of money on the technology but the important thing is, it is a
big opportunity to them to gain profit. With the use of this advanced technology, the amazon
go’s transaction will run smoothly. Many customers will enjoy this and will use this app. T

Though the their expenses on the technology is much higher than The the budget or
investment that amazon go spend in technology is too much higher than other expenses, but the
benefits of using technology is doble compare to their expense. because of technology their
transaction will run smoothly, as well as the problem will lessen and the number of customer will
increase because of the satisfaction and convenience. Also by using or downloading the apps,
amazon will benefits on it. in short the profit of amazon go is much higher that their expense in
technology

Yes The cost of implementing, maintaining, and sustaining the system may offset or exceed cost-
savings through

I believe that the cost of opening an Amazon Go is negligible compared to the

potential these stores have. Especially so, considering the fact that the costs
are fixed and Amazon has significant experience with economies scale.
technology and costs will not stand in the way of cashier-less shopping
experience
think that the cost of opening the stores will be insignificant relative to the
future revenues that we would expect a store like this to generate. 

(3.5) Is the cost of opening a chain of Amazon Go stores will prove prohibitive for scaling the
technology? Explain;
In my opinion, it will be a big challenge for the amazon go to expand their store because of their
technology is very much advanced. This technology is new to customers, some are not aware
with this technology especially the elders, also they said it is a kind of discrimination for those
people who don’t have a bank account, intelligent cellphone, or credit card. It is costly so
there is no guarantee that the money they spend will be returned.

the cost of expanding and using the technology they use is enormous and there is no certainty
as to whether the money they used will be returned. the concept of amazon go will be a big
adjustment for consumers so there is no guarantee that people will enjoy it.

3.5 is basically just asking if the cost of opening of the chain of Amazon Go stores will be a major
obstacle/challenge in increasing/enlarging the adoption of the technology used?

(3.6) Is the “Just Walk Out” technology of Amazon Go truly the way of the future? In 10yrs,
will all stores operate without cashiers? Explain;

As the presence of technology becomes more widespread and accepted, this cashless
store will become commonplace. The Just Walk Out” technology of Amazon Go touches
every pain point of a consumer on in-store shopping, and it fits directly to the lives of the next
generation of shoppers. I believe in 10 years, it is possible that some stores will operate without
cashiers because not all stores have the latest technology to build cashierless stores. But we
still need people to assist us because this technology will not be last, there would be some
problems in this applications. Another is that, Amazon Go’s new “Just Walk Out Technology” will
eliminate the jobs in retail stores for the following years.

(3.7) What are the challenges and other possible “social impact” of this technology/store
concept?. Identify and discuss as many as you can.
The challenges and other possible social impact of this technology/store concept would be the
impact on workforce. Jobs will be lessen for the next following years because of its cashierless
application The cashier-less service will eliminate staff customer interpersonal communication
and limit service levels. Another is that, not all of the retail technology providers are going to
have the latest technology to build cashierless stores in time for when it’s needed. It would be
difficult for some people who don’t have a bank account, intelligent cellphone, or credit card.

The cashier-less service will eliminate staff customer interpersonal communication and limit
service levels. Jon felt that personal safety would be affected, while Rick said that a lot of jobs
would be lost.

Amazon Go is a portal to the future of in-store shopping. It touches every pain point of a
consumer on in-store shopping, and it fits directly to the lives of the next generation of shoppers.
This will positively affect Amazon brand and will allow Amazon to touch more and more
consumers by influencing the market.

As a result, the company has been able to optimize productivity while minimizing
traditional operating costs. 
 Customers concerned with day-to-day privacy

https://sites.psu.edu/ist110pursel/2019/04/14/amazon-go-pros-and-cons-not-everyone-is-ready-
to-step-into-the-future/