Amazon.com Inc. has invited the world’s biggest brands to Seattle to persuade them that it’s time to start shipping products directly to online shoppers, thus bypassing chains like Wal-Mart, Target, and Costco.
1. What would be the costs to these brand companies? What would be the benefits?
2. What would be the benefits to Amazon? What would be the costs to Amazon?
3. Discuss whether you think this would be a hard sell or an easy one.
4. What is Amazon’s threat if brand companies do not buy into this concept?
Soper, S. and C. Giammona. Amazon Wants Cheerios, Oreos and Other Brands to Bypass Wal-Mart. Bloomberg.com, March 30 (Retrievable online at https://www.bloomberg.com/news/articles/2017-03-30/amazon-wants-cheerios-oreos-and-other-brands-to-bypass-wal-mart)