|Image Credit TechCrunch|
Which of these rings most true to you? Amazon will...
- seriously enter the traditional supermarket business
- use the Whole Foods locations as retail store fronts for Amazon products
- leverage Whole Foods’ supply chain and locations to super-charge their own Amazon Fresh delivery business
- operate Whole Foods and significantly drop prices in order to start a supermarket price war. Weaken at least some of the competition and push others out, after which Amazon Fresh and traditional Amazon dry goods grocery items can gain market share
- do something I haven’t thought of yet
I find #4 to be the most interesting.
Amazon seems particularly focused on Walmart and Target (big retailers who also sell groceries) and would love to deal them a serious blow. If along the way Amazon can damage some of the big supermarket chains while simultaneously boosting their own multi-faceted food business (Amazon Fresh, traditional Amazon food sales, and the rumored Amazon competitor to Blue Apron), that would be a very savvy business move.
Does this sound improbable to you? Not to me. Just think back on Amazon’s history and the way they have aggressively moved into other business areas (AWS), acquired great businesses (Zappos), and destroyed businesses they perceived to be in their way (Diapers.com). I think anything is possible.
What do you think?