In August, Amazon entered the retail grocery market. Its goal: transform the economic value chain associated with traditional bricks-and-mortar grocery delivery.
Its plan: expand its scope, differentiate its product, cut cost by integrating grocers and customers into its larger e-commerce platform, and lower consumer prices. As Jeff Wilke, CEO of Amazon World Consumer, said, “And this is just the beginning — we will ... continuously lower prices as we invent together.” Traditional grocery chains’ market value dropped 8 percent overnight.
Education and grocery stores are different businesses, but both have much to learn from Amazon.