Case Study : Brick And Mortar Stores

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Brick and Mortar Stores While interviewing with CBS, when asked about opening a brick and mortar storefront Jeff Bezos said “[t]he question we would always have before we would embark on such a thing is what 's the idea, what would we do that would be different, how would it be better... we don 't want to be redundant” (Farber, 2012). Amazon is not interested in opening a storefront simply because it is a venue where many of their competitors operate. Bezos is constantly looking for new methods for Amazon to be profitable in the long term; however he does not see stocking brick and mortar stores with inactive inventory as something that would be a wise investment for Amazon. To open a storefront, Amazon would not only incur the costs of operating, staffing and maintain that facility, but it would also incur significantly increased inventory expenses as inventory would sit idle in a much less accessible place than their current fulfillment centers. Amazon’s pride for having “Earth’s biggest selection” also hinders the company from taking their stores into physical locations. To stock those stores with the multitude of products that Amazon offers to their customers would be a substantial cost. The large amount of inventory that is owned by the various third-party vendors provides another reason that inventory would cause a great issue for Amazon when trying to open a brick and mortar store. On the other hand, in recent years Amazon has ventured into a new realm that
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