Friday, December 23, 2011

Amazon vs. brick and mortar

Last week we cited a case where the online retailing giant Amazon marketed itself by playing hardball with what we call “bricks and mortar” businesses, generally those that are locally owned and occupy a physical space in a community.

The responses (here) were as varied as they were interesting.  They ranged from a couple that spoke to the need for local businesses to define themselves, emphasizing their differences and appealing to customers on that basis, rather than trying to be a price leader.

Another way to convey that message would be to point out your strong points, whether they are superior levels of customer service, home delivery, or a pleasing atmosphere in the store, emphasizing services that online retailers cannot provide.

Others spoke to the Darwinian nature of business, with the big ones gobbling up the smaller ones and that Amazon was within its rights to use cutting edge technology (in this case smart phones) to literally lure a customer out of a store by asking them to check its prices against Amazon’s and then offering a discount if they walked out.

Being big in itself isn’t a guarantee of success.  Witness the demise of the Borders’ book chain as one example.

It would be interesting to hear from small businesses that continue to not only survive, but to thrive and how they have done it. How are they setting themselves apart?   Share some examples.


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