“Amazon’s long term survival is in jeopardy whether or not it succeeds in sending Barnes & Noble to join Borders in history,” according to the 8SAGES.COM article posted on June 21, 2012.
This post updates that article which went on to explain that “Amazon becomes increasingly inflexible and unable to adapt to change as it continues to commit capital to its humongous distribution centers serving vast trade areas while remaining dependent on third party companies like UPS and FEDEX for delivering purchases to customers.”
Since that article was posted, Walmart has moved to challenge Amazon’s logistic advantage by offering same day home delivery of orders placed online or having such orders set aside ready for customer pickup at the store. Bloomberg’s Market News has moved to delivering its publication to homes on Saturday using the newspaper delivery network.
Microsoft, by virtue of its investments in Windows 8, the Barnes & Noble’s Nook e-reader, Nokia’s smart phone and its own Surface tablet, can satisfy its crying need for a chain of retail stores that, like the Apple stores, can reach potential customers and demonstrate its products by utilizing excess space in Barnes & Noble stores. We refer these stores as Microsoft’s Touch Screen stores.
Pizza chains, florists and other retailers of perishables have developed the online and telephone capabilities for taking orders and the home delivery services that enable them to compete with Amazon. There is no reason why Microsoft’s Touch Screen stores cannot do the same.
The trend for retail stores becoming larger and larger and increasingly difficult to shop has reversed. The pace of Amazon’s competition stiffens as chains of small stores serving tiny trade areas expand. Such stores include: Aldi, Trader Joe’s, Save-a-Lot, Dollar General, Five Below, Quick and Easy.
Stores like Costco and Staples that retail products to consumers and wholesale products to nearby businesses have achieved efficiencies in marketing and logistics that enable them to survive and grow in direct competition with Amazon. As the title of this post notes: Amazon’s days of dominance are numbered.
Copyright November 2012 by Leo J. Shapiro – All Rights Reserved