The Amazon Factor: Are you ready for business and digital disruption?
Amazon’s recent purchase of organic and natural foods retailer Whole Foods, created another example of business disruption. With share prices falling for grocery businesses such as Kroger and Walmart, plus a slump in stock price for brands Hershey and Campbell Soup due to investor concern over Amazon’s ruthless price cutting.
Will we see the e-commerce giant changing the dynamics of the brick and mortar grocery segment, and the effect rippling down into the supply chain? For sure food and beverage distributors and manufactures will have to accept disruption will affect them in one way or another.
Business and digital disruption is a constant:
The likes of Amazon and new market entrants are bucking traditional business models having a profound effect on how the distribution marketplace operates.
With advancing technology, shifting demographics, potential trade barriers, and increasing regulation, it’s not new that wholesale distributors operate in an era of constant change.
Competitors who have made the digital transition are more mobile, social and have a better understanding of their customers and product margins from in transaction, real time business intelligence.
Distributors are offering value added services to producers, by bringing packaging and production in-house, offering a range of “a la carte services,’’ creating niche markets with limited competition.
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