Amazon: Friend, Foe or Frenemy?
December 1, 2015
Jim Taggart
People love to criticize and disparage Amazon. Yet, Amazon continues to grow, expand into new markets and secure new customers.
The business model is simple:
• “be the world’s most customer-centric company”
• with the most efficient, distribution infrastructure footprint
• that is specifically tuned to servicing e-commerce orders
• nudging customers to first order at home and then in the office
• using advanced technology to make the ordering and delivery of product easy, fast and efficient.
You can say what you want about the Amazon employee work environment, but they seem to have the brightest and most talented engineers and marketers lined up outside their doors wanting to join the company. Amazon’s service has also proven to be lightning fast, cost effective and efficient.
I’m not saying that we should adapt Amazon’s business model, but both manufacturers and distributors need to determine the relationship they need to establish with Amazon. It’s pretty evident to me; we can’t ignore the fact that Amazon is going to have a significant presence in the electrical product market. As an industry, we must figure out how to successfully compete against them, or how to join sides. In short, EFC members need to determine if they are going to be “friend or foe” and build their strategy accordingly. Just ignoring and hoping Amazon disappears may not be the most prudent plan.
Read more in CEW from Jim Taggart:
– We Need to Engage More Women in the Industry. Me included
– Not Your Typical Industry Association
– Breaking Through the Age Barrier
– Electrical Industry – Mergers and Acquisition
– Understanding and Responding to Disparity
Profile: Jim Taggart: A Steady Hand, A Stellar Career
Jim Taggart is President, Electro-Federation Canada.
