Question: Amazon: From Digital to Brick-and-Mortar? Amazon.com's Internet-based business model created havoc in the retail industry. Beginning with selling books online, then music, then just about

Amazon: From Digital to Brick-and-Mortar?
Amazon: From Digital to Brick-and-Mortar? Amazon.com's Internet-based business model created havoc in the retail industry. Beginning with selling books online, then music, then just about anything, the company cut into traditional retailers' markets and margins. Built on a business model that created profits through selling high volume at a low margin, and doing so with very little physical assets, it quickly became the 800-pound gorilla every retailer had to face. Those that have survived have done so by trying to develop their own online presence while maintaining their brickand-mortar operations Now Amazon is attacking them on their traditional turf the brick and mortar store. The company recently unveiled a grocery store called "Amazon Go." The plans are to open more than 2,000 of these grocery stores, which would put them on par with Kroger Co, which has around 2,800 locations in 35 states. These stores will be multifunctioning with curbside pickup capability, in-store shopping, and even delivery One potential format would be like a convenience store, but one that eliminates checkouts, cash registers, and lines. Customers scan their phones upon entering the store, and using artificial intelligence-powered technology, Amazon can determine what customers took from the shelves, charge them for the items, and send a receipt. Another format would resemble the traditional 30,000 to 40,000-squarefoot grocery store where customers pick the fresh selections they like and also order other items via touch-screen to be delivered later. QUESTIONS 1. The chapter mentions that Amazon's culture has been described as quite difficult. Do you think the culture will need to change with this store format? If so, how, and if not, why not? 2. What will be the implications of Amazon's foray into brick and mortar stores for the talent that they will need

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