amazon harvard case study

Amazon vs. Whole Foods: When Cultures Collide

Amazon’s acquisition of Whole Foods last August was the corporate equivalent of mixing tap water with organic extra virgin olive oil. You’d be hard-pressed to find two companies with more different value propositions.

Even so, it was surprising to hear reports shortly after the marriage about Whole Foods customers, really angry customers, regularly encountering empty shelves at their favorite retailer. Then stories surfaced about Whole Foods employees crying over their new performance-driven working conditions imposed by Amazon.

“This is not a story where there is a good guy and a bad guy"

A tale of two cultures

From the very start, Amazon made its name on being fast, cheap, and efficient—using data to drive its product mix and enforcing strict employee discipline to squeeze out cost savings to pass on to its customers.

Whole Foods, on the other hand, always prided itself on its personal touch, empowering individual stores—even individual employees—to make decisions about products that emphasize high quality, healthy, and local foods. That decentralization, however, caused enormous inefficiencies that drove up prices to the point where critics referred to the store as “Whole Paycheck.”

The acquisition was initially met positively by Wall Street, amid hopes that Amazon’s data-driven mindset might be just the thing to enable Whole Foods to scale up and add more stores while maintaining its employee-empowered culture.

That’s not quite what happened.

“A lot of it from our perspective was centered on a culture clash,” says Campbell. “Whole Foods has a very high-empowerment kind of culture, so these  ‘draconian’ standards, telling people where to put things on the shelves and the loss of autonomy, employees were feeling angry from that.”

The new inventory system was actually something Whole Foods had started to implement before the Amazon deal, pressured by activist shareholders who had seen the grocer’s stock and sales margins slipping for two years.

“This is not a story where there is a good guy and a bad guy,” says Campbell. “It’s a story about what the limits are to scaling this high-empowerment model, and what are the limits to a model where it’s all about standardization and data.”

A model of empowerment

For decades after its founding in 1980, Whole Foods’ decentralized model had earned a cult following, driving rapid growth from its Austin, Texas, home across the country. Managers operated stores like autonomous fiefdoms, able to tailor offerings based on customer preferences for fresh, local produce. Employees—also known as team members—built relationships with customers to cater to their needs and came up with ideas, like a bike messenger service or a new bread recipe, that sometimes found their way to other stores.

“That model of empowerment brings with it a lot of wonderful, creative solutions and a great relationship with local suppliers—and customers are very into that,” says Sandino. “They were appealing to a wealthy customer with a curated selection of healthy products that people could trust.”

The company also earned loyalty from team members—it was named one of America’s best companies to work for by Fortune magazine a staggering 20 years in a row.

“It’s one of those cultures that works for some people, but not others. There is a lot more performance pressure and accountability"

In some ways, however, the company became a victim of its own success as a pioneer of organic sustainable foods. Peaking in 2013, it started losing market share to less pricey alternatives such as Walmart, which had entered the organic space. By 2017, Whole Foods had started closing stores.

Turning data into customer value

Amazon, by contrast, had always been about low costs and efficiency, pursuing a frugal focus and rigorous performance measurement in its warehouses and distributions centers. This sometimes resulted in reports of workers stressed out and exhausted by the demanding environment.

“It’s one of those cultures that works for some people, but not others,” says Campbell, “there is a lot more performance pressure and accountability.”

The model paid off for customers in low prices and fast shipping, and they became intensely loyal: According to one survey, 85 percent of Amazon Prime members visit the site, and 46 percent buy something at least once a week .

After Amazon’s acquisition, Whole Foods pushed forward with the inventory system first introduced by the activist investors, started to centralize decisions about product selection, and slashed prices by as much as 40 percent on some items.

Employees struggled, however. They were frustrated about having to do paperwork instead of helping customers, and stressed over new performance metrics with demerits if they failed to meet them. Last year, the company dropped from Fortune’s best companies to work for list for the first time in two decades.

What went wrong?

The question that Campbell and Sandino ask in their case is: Given the pressures Amazon was facing to turn around Whole Foods’ slide, should they have approached the acquisition differently?

While there are no easy answers, Campbell says that part of the issue is realizing the limits of standardization, even for a company that has perfected data-driven management.

“It’s not totally clear that data will be a perfect substitute for human judgment,” he says. “That might work in a digital platform, where you have tons of data on customer history you can use to drive a recommendation engine, but in a store environment, there is a lot of learning that takes place from employees interacting with customers that can be very localized and specific.”

That kind of tacit knowledge is not easily captured in data and performance metrics, adds Sandino. “Amazon has been an expert on delivering non-perishable foods, but that is different than learning how to prepare certain foods, or knowing how customers want their fish or a cut of meat, which may vary in the moment.”

She suggests Amazon may have been better off pursuing a management concept known as structured empowerment, where a company standardizes operations but allows flexibility for employees to make their own choices in key areas where having high-touch contact with customers matters.

In addition, she says, Amazon might have changed its performance measures to focus more on results rather than processes, holding employees accountable for goals, but giving them more leeway on how they achieve them.

“Instead of this assumption that data should take over everything, there is a huge opportunity here for data to inform and complement human judgment”

“They can make some tradeoffs and incorporate their own knowledge, rather than having to follow a recipe,” she says. That, in turn, could give them more incentive to use the data Amazon is serving up to further drive results.

Is the best yet to come?

Campbell stresses that the ideas in their case are speculative, based on second-hand reports in the press. They can’t be sure how much Amazon tried to integrate its culture with that of Whole Foods, or what its ultimate goal is for the acquisition. There is always the possibility the company is just acquiring the stores for their locations, and plans to phase out the Whole Foods brand.

Assuming that Amazon wants Whole Foods to succeed, however, it might do well to consider the benefits of the grocery chain’s empowerment model, and what elements of it to keep, before throwing out the proverbial olive oil with the tap water.

“Instead of this assumption that data should take over everything,” Campbell says, “there is a huge opportunity here for data to inform and complement human judgment.”

Related Reading:

An Organization Your Customers Understand When Business Performance Falters, is Culture Change the Fix? Cultural Disharmony Undermines Workplace Creativity

What do you think of this story?

Have you experienced a clash of corporate cultures? Share your insights below.

• 06 May 2024
• Research & Ideas

The Critical Minutes After a Virtual Meeting That Can Build Up or Tear Down Teams

• 24 Jan 2024

Why Boeing’s Problems with the 737 MAX Began More Than 25 Years Ago

• 22 May 2024

Banned or Not, TikTok Is a Force Companies Can’t Afford to Ignore

• 09 May 2024

Called Back to the Office? How You Benefit from Ideas You Didn't Know You Were Missing

• 25 Jan 2022

More Proof That Money Can Buy Happiness (or a Life with Less Stress)

• Organizational Culture
• Acquisition
• Organizational Change and Adaptation
• Service Operations
• Food and Beverage
• United States

Sign up for our weekly newsletter

• Harvard Business School →
• Faculty & Research →
• April 2012 (Revised October 2013)
• HBS Case Collection

eBay, Inc. and Amazon.com (A)

• Format: Print
• | Language: English
• | Pages: 18

About The Author

Ramon Casadesus-Masanell

Related work.

• Faculty Research

eBay, Inc. and Amazon.com (B)

• eBay, Inc. and Amazon.com (B)  By: Ramon Casadesus-Masanell and Anant Thaker
• eBay, Inc. and Amazon.com (A)  By: Ramon Casadesus-Masanell and Anant Thaker

• Business & Money
• Management & Leadership

Fulfillment by Amazon (FBA) is a service we offer sellers that lets them store their products in Amazon's fulfillment centers, and we directly pack, ship, and provide customer service for these products. Something we hope you'll especially enjoy: FBA items qualify for FREE Shipping and Amazon Prime.

If you're a seller, Fulfillment by Amazon can help you grow your business. Learn more about the program.

Download the free Kindle app and start reading Kindle books instantly on your smartphone, tablet, or computer - no Kindle device required .

Read instantly on your browser with Kindle for Web.

Using your mobile phone camera - scan the code below and download the Kindle app.

Image Unavailable

• To view this video download Flash Player

HBR Case Studies: Making Change Stick (Harvard Business Review Case Studies) Paperback – December 2, 2008

This volume, tentatively titled "Bob's Meltdown and Other Stories from the Frontines of Management" looks at the most common issue in workplaces--employee behavior. What should you do when a star employee loses his temper in public? Worse yet, what if your protege seems to be coming unglued? All this and more!

• Print length 179 pages
• Language English
• Publisher Harvard Business Review Press
• Publication date December 2, 2008
• Dimensions 5.75 x 0.75 x 8.75 inches
• ISBN-10 1422114708
• ISBN-13 978-1422114704
• See all details

Similar items that may deliver to you quickly

Editorial Reviews

About the author, product details.

• Publisher ‏ : ‎ Harvard Business Review Press (December 2, 2008)
• Language ‏ : ‎ English
• Paperback ‏ : ‎ 179 pages
• ISBN-10 ‏ : ‎ 1422114708
• ISBN-13 ‏ : ‎ 978-1422114704
• Item Weight ‏ : ‎ 5.6 ounces
• Dimensions ‏ : ‎ 5.75 x 0.75 x 8.75 inches
• #17,860 in Business Management (Books)

Customer reviews

Customer Reviews, including Product Star Ratings help customers to learn more about the product and decide whether it is the right product for them.

To calculate the overall star rating and percentage breakdown by star, we don’t use a simple average. Instead, our system considers things like how recent a review is and if the reviewer bought the item on Amazon. It also analyzed reviews to verify trustworthiness.

No customer reviews

• Amazon Newsletter
• About Amazon
• Accessibility
• Sustainability
• Press Center
• Investor Relations
• Amazon Devices
• Amazon Science
• Sell on Amazon
• Sell apps on Amazon
• Supply to Amazon
• Protect & Build Your Brand
• Become an Affiliate
• Become a Delivery Driver
• Start a Package Delivery Business
• Advertise Your Products
• Self-Publish with Us
• Become an Amazon Hub Partner
• › See More Ways to Make Money
• Amazon Visa
• Amazon Store Card
• Amazon Secured Card
• Amazon Business Card
• Shop with Points
• Credit Card Marketplace
• Reload Your Balance
• Amazon Currency Converter
• Your Account
• Your Orders
• Shipping Rates & Policies
• Amazon Prime
• Returns & Replacements
• Manage Your Content and Devices
• Recalls and Product Safety Alerts
• Conditions of Use
• Privacy Notice
• Consumer Health Data Privacy Disclosure
• Your Ads Privacy Choices

• SUGGESTED TOPICS
• The Magazine
• Newsletters
• Managing Yourself
• Managing Teams
• Work-life Balance
• The Big Idea
• Data & Visuals
• Reading Lists
• Case Selections
• HBR Learning
• Topic Feeds
• Account Settings
• Email Preferences

“We Need People to Lean into the Future”

• Adi Ignatius

For years, Walmart’s unrivaled customer research capabilities helped it dominate retailing. Then along came the internet, and Walmart suddenly found itself playing catchup to e-commerce pioneers like Amazon. In 2014 the board appointed Doug McMillon as CEO and gave him an imperative: Bring Walmart into the future—without sacrificing its longtime strengths.

McMillon, who began his career unloading trucks at a neighborhood Walmart, respects tradition but is impatient for change. In this interview with HBR editor in chief Adi Ignatius, he describes the ups and downs of transforming America’s largest company. Going digital is a top priority—which is why Walmart recently paid $3 billion to acquire e-tailer Jet.com. But the company also wants to strengthen the in-store experience. “The reality,” notes McMillon, “is that customers want everything”—low prices, convenience, and seamless interactions online and in person. In this new world, all employees, including those on the sales floor, will need to be tech savvy. And the management team can no longer make strategic decisions on an annual or even quarterly basis; “strategy is happening on a much faster cycle time,” says the CEO.

A conversation with Walmart CEO Doug McMillon

For years, Walmart seemed to understand exactly what its customers wanted. It developed complicated consumer analytics and used that data, along with relentless pressure on suppliers, to become a retail powerhouse that sold practically everything at the lowest possible prices.

• Adi Ignatius is the editor in chief of Harvard Business Review.

Partner Center

Amazon Business Case Study [2024]: In-depth Analysis

How does an online book retailer become a behemoth dominating the global e-commerce industry? The 28-year-old history of Amazon’s growth is a masterclass in building a successful business strategy that has revolutionised the retail experience forever! The company has achieved eponymous status with a global presence and diversified business. No wonder its sales are expected to reach an astounding USD 746.22 billion with a valuation of USD 2 trillion in 2024! From being an online bookseller headquartered in a garage to becoming the second most valuable brand in the world , the saga of this global brand is a case study in all the leading business schools.  

So what is the secret behind the explosive success of Amazon? This article provides a comprehensive case study of Amazon and its winning business strategy. 

Study Product Management Courses online from the World’s top Universities. Earn Masters, Executive PGP, or Advanced Certificate Programs to fast-track your career.

Glimpsing Back: A Brief History of Amazon

With a small team, the budding company made headway in the book-selling market by offering a wide virtual selection of books compared to brick-and-mortar stores with doorstep delivery. With a user-friendly interface, easy-to-search engine, and focus on creating a ‘virtual community,’ the business grew by leaps and bounds. The emphasis on customer choice, experience, and convenience serves the company well even today. 

The name was aspirational with a nod to the largest river in the world- Bezos’ Amazon sought to be the largest e-commerce bookseller in the world. By July 1995, Amazon was marketing itself as the “Earth’s Biggest Bookstore,” selling over one million titles to all 50 states in the US and across 45 countries . It provided stiff competition to brick-and-mortar giants like Barnes and Noble and Borders. 

The company went public with its IPO in 1997 ; since then, there has been no looking back. Since its listing, the company has significantly diversified its offering by including music, electronics, toys, kitchen utensils, clothes, and more on its e-commerce site. From the Earth’s Biggest Bookstore, Amazon shifted its tagline to “Books, Music and More.” The company expanded to Germany and the United Kingdom by purchasing online bookstores, thus increasing its revenue. At its core, the company established a dynamic, efficient, and successful distribution and logistical model that helped capture a global market.

The year 1999 marked two critical moments for Amazon. First, the company patents the “1-Click” technology allowing users to purchase a product with one click. Second, it launches the 3rd party seller marketplace to allow third-party sellers to sell their produce through Amazon. These measures exponentially increased the sales on the platform. The company’s success put Bezos on the map as he received the prestigious accolade of the “Time’s Person of the Year” in 1999 at 35 years of age. 

The company survived the dot-com bubble burst and got only stronger. In 2003, the company took a momentous step by launching Amazon Web Services , a web-hosting business, that marked its arrival into the tech business. It provides cloud computing services to individual developers, companies, and governments through the platform’s IT infrastructure. The strategic shift from an e-commerce platform to a tech company was instrumental in Amazon’s diversification strategy and revenue generation. 

The company took further measures to develop brand loyalty through its Amazon Prime program in 2005. Prime membership has since expanded its services significantly and is one of the most valuable assets for the company today. It reshaped consumer expectations and experiences of shopping across the world. 

Amazon has been on a path of extensive acquisition and alliance . From the online shoe retailer Zappos to the robotics company Kiva Systems and the grocery delivery service Whole Foods- each acquisition captured pre-existing markets and distribution networks of the acquired assets. With every move, the company strategically entered new markets, removed competitive businesses by acquiring them, made distribution and logistics more efficient, and improved consumer experience. These moves catapulted the company to a 1 trillion dollar valuation in 2018. The company’s profits surged during the pandemic as Bezos’ hourly wealth increased by USD 11.7 million . The following year, Bezos stepped down as the CEO and found his replacement in Andy Jassy, the CEO of Amazon Web Services.

Now that we know the history of Amazon, its business strategy becomes easier to decipher. Before we unravel its key business strategies, let’s look at its many businesses. 

Amazon and its Diversified Business Model

A case study of Amazon is incomplete without an understanding of the many businesses that it has a foot in. Here are the diverse businesses that help Amazon generate revenues from multiple streams and have made it a leader in the global market. 

Online retail store

Amazon began as an online seller of books, and it continues its operations as an e-commerce site. Today the site offers a variety of products for the best prices to the consumer’s doorsteps. With an easy-to-use interface, easy return policy, “1-Click” buying, customer reviews, and suggestions, the e-commerce site knits an unrivalled retail experience. 

Amazon Marketplace

Amazon opened its platform to third-party sellers who could leverage its large customer base to sell products. It brings a diversity of products to the retailer without holding inventory. Amazon would, in turn, charge the sellers a percentage of their revenue as a commission fee. It is estimated that third-party sellers generate a gross merchandise value (GMV) of USD 300 billion for the platform.

Amazon Web Services (AWS)

Amazon’s cloud platform offers individual developers, start-ups, established businesses, and governments a range of cloud computing services through its IT infrastructure. It is the fastest-growing business segment for the brand clocking a global net revenue of USD 80.1 billion in 2022. 

Amazon Prime

Amazon’s member subscription service offers numerous membership benefits ranging from access to digital video and music streaming, audiobook and ebook platforms, free delivery, exclusive deals, Prime Day access, and much more. The company’s global net revenue from its subscription services stood at USD 35.22 billion in 2022. 

Amazon revealed in 2022 that the advertising wing of the company had generated a revenue of USD 31.2 billion the preceding year. The company offers custom advertising solutions to customers and campaign placements across multiple channels like Fire TV placements, Amazon physical stores, the brand’s homepage, and customised destination pages.

Physical stores

Amazon made an entry into the brick-and-mortar business with the establishment of a physical bookstore in Seattle in 2015. The company has since expanded its physical presence with Amazon Go, Amazon Fresh, Amazon Go Grocery, Whole Foods Market, and Amazon Style. It has sought to transform the real-world shopping experience with its “Just Walk Out Shopping’ experience. 

Breaking Down Amazon’s Business Strategy

Amazon’s business strategy has been innovative and forward-thinking from the get-go. Its path-breaking business model has inspired many but retains its uniqueness in execution. At its core, the company has maintained its customer-centric ethos, where its customers comprise three sets: retail customers, seller customers, and developer customers.   

For a comprehensive case study of Amazon , let’s take a closer look at the secret recipe behind its success.

Customer Obsession

The company proudly proclaims that it aims to be the “Earth’s most customer-centric company.” Since its inception, Amazon has won over the trust and loyalty of its customers by perfecting its marketing mix by offering “a comprehensive selection of products, low prices, fast and free delivery, easy-to-use functionality, and timely customer service.”   As Amazon’s customer base and usage expands exponentially, the company has worked towards optimising user experience through continuous assessment and feedback mechanisms.

Diversification

Amazon has kept up with the emerging demands of the market with growth potential in the long term. Its future-oriented vision has helped the company grow by leaps and bounds by venturing into new businesses that have added to its revenue streams. From cloud computing services to OTT services and subscription-based benefits, Amazon has reinvented what a diversified business looks like. 

Expansion through partnerships and acquisitions

Amazon has continually acquired and partnered with businesses to expand its customer base, enter new markets, diversify its product offerings, eliminate competition, and gain distribution and logistical networks. From IMDB and The Washington Post to Twitch and Pillpack, Amazon has bought companies across multiple categories to gain a foothold in their markets and operations. It has helped the company scale up its functions rapidly across the globe.

Technologically-driven innovations

Initially, Amazon was written off as it was started by “computer guys” who knew nothing about selling books. However, it was a focus on innovative technology that the company grew into a tech giant dominating the e-commerce space. Whether it is the 1-Click technology, SEO, user interface, cloud computing services, Just Walk Out technology, or its e-devices, the company has optimised customer experience by leveraging technology.

Data-based metrics

Amazon has consistently relied on metrics to assess, strategise, and grow its business. Data is an invaluable currency left behind with every click by the customer. The company has effectively and efficiently amassed these data into actionable insights to improve user experience, build and improve products and services, and develop successful marketing strategies. 

Marketing strategy

A comprehensive marketing strategy has been central to Amazon’s brand-building exercise. With the right marketing mix, the brand has become a household name. Its name and logo are recognisable anywhere in the world. A continual push to diversify its portfolio, competitive pricing policy, expanding its operations, and consistent promotions through multiple channels have been integral to achieving this global status. 

Explore our Popular Management Courses

Amazon, the second-most valuable company in the world, has been almost three decades in the making. Every step and misstep has been strategic and guided by the principles of: “customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking.” This case study of Amazon has sought to highlight its history, business model, and business strategies that have gone into the making of the behemoth. Ultimately, the company is a product of the management of Jeff Bezos and Amazon’s leadership. 

Top Management Skills to Learn

Do you want to learn the tricks of the trade that makes the brightest management minds tick?

Leap into the sphere of management with upGrad!

The Advanced General Management Program by upGrad will guide you in the right direction in your management journey. Learn from the world-class faculty from one of India’s premier B-schools- Institute of Management Technology (IMT), Ghaziabad. The program offers a comprehensive syllabus covering subjects like Business Growth Strategies, Leadership, Structured Thinking and Problem Solving, and Project Management skills. The 11-month course offers 1:1 mentoring and placement assistance, too. 

Enrol now to unleash your potential!

Our Top Management Articles

You can also check out our free courses offered by upGrad in Management, Data Science, Machine Learning, Digital Marketing, and Technology. All of these courses have top-notch learning resources, weekly live lectures, industry assignments, and a certificate of course completion – all free of cost!

Jitesh Goel

Something went wrong

Our Popular Product Management Course

Our Trending Product Management Courses

• Post Graduate Certificate in Product Management
• PG Program in Management

Frequently Asked Questions (FAQs)

Jeff Bezos has held the position of Founder and CEO of the company. However, he inherited the position of the Executive Chairman of Amazon after resigning as the CEO of the company in 2021.

Amazon launched in India in June 2013. Initially starting its operations to serve Indians with books, films, TV shows and subscription-based services, the company further expanded its wings to become one of the leading shopping destinations for Indians.

The most important focal point of Amazon’s business strategy is its customers (retail customers, sellers, and developers) and building a customer-centric company.

Related Programs View All

Certification

16 Hrs Live Expert-Led Sessions

14 Case Studies, 3 Mock Tests

View Program

Master's Degree

Dual Credentials

Job Assistance

16+ Hrs Expert-Led Sessions

5 Simulation Exams, 8 Mock Tests

24 Hrs Live Expert-Led Training

Earn 24 PDUs and 24 SEUs

36 Hrs Live Expert-Led Training

Premium 2000+ Question Bank

32 Hrs Live Expert-Led Training

Earn 32 PDUs and SEUs

Complimentary On-Demand Course

1 Year SAFe® Community Membership

88 Hours On-Demand Learning

Training by top CSTs

16 Hrs Live Expert-Led Training

Earn 16 PDUs and 16 SEUs

AACSB accredited

Training by Top-Notch SPCs

3 Day Leadership Summit in Dubai

Ivy League School

Executive PG Program

Offline Campus Experience

PG Certification

6-10.5 Months

2500+ Students Enrolled

EQUIS & AMBA Accredited

Executive Coaching

Simulations, 5 Mock Tests

Instructor Led Model

16-Hrs Live Expert-Led Sessions

Earn 16 SEUs and 16 PDUs

16+ Hrs Expert-Led Training

AMBA, AACSB & NIRF Accreditation

24+ Hrs Expert-Led Sessions

Simulation Exams, 24 PDUs

35 Hrs Live Expert-Led Training

35 PD Hrs, 35 CDUs & 35 PDUs

24-Hrs Live Expert-Led Sessions

Activities and Case Studies

8+ Hrs Expert-Led Sessions

Interactive Sessions, Activities

36+ Expert-Led Training

5 Simulation Exams, Projects

21 Hrs Live Expert-Led Training

Earn 21 CDUs and 21 PDUs

2-Day Live Expert-led Training

Simulations, 4 Mock Tests

16 Hours of Instructor-Led Sessions

Simulation Exams and Mock Tests

Earn 16 PDUs and 16 SEUs

24-Hrs Live Expert-Led Training

Earn 24 SEUs and 24 PDUs

Explore Free Courses

Learn more about the education system, top universities, entrance tests, course information, and employment opportunities in Canada through this course.

Advance your career in the field of marketing with Industry relevant free courses

Build your foundation in one of the hottest industry of the 21st century

Master industry-relevant skills that are required to become a leader and drive organizational success

Build essential technical skills to move forward in your career in these evolving times

Get insights from industry leaders and career counselors and learn how to stay ahead in your career

Kickstart your career in law by building a solid foundation with these relevant free courses.

Stay ahead of the curve and upskill yourself on Generative AI and ChatGPT

Build your confidence by learning essential soft skills to help you become an Industry ready professional.

Learn more about the education system, top universities, entrance tests, course information, and employment opportunities in USA through this course.

Suggested Blogs

by Dilip Guru

24 Jan 2024

25 Sep 2023

24 Sep 2023

by Jitesh Goel

19 Sep 2023

by Keerthi Shivakumar

18 Sep 2023

12 Sep 2023

28 Aug 2023

08 Jul 2023

Brought to you by:

Sell Direct-to-Consumer or Through Amazon? (HBR Case Study and Commentary)

By: Thales S. Teixeira, Stephan Aarstol, Gil Efrati

For a company that's trying to reach more customers, selling on Amazon might seem to be a no-brainer. But there are plenty of risks: A firm might get dragged into a price war with low-cost…

• Length: 6 page(s)
• Publication Date: Mar 1, 2019
• Discipline: Strategy
• Product #: R1902M-PDF-ENG

What's included:

• Educator Copy

$4.95 per student

degree granting course

$8.95 per student

non-degree granting course

Get access to this material, plus much more with a free Educator Account:

• Access to world-famous HBS cases
• Up to 60% off materials for your students
• Resources for teaching online
• Tips and reviews from other Educators

Already registered? Sign in

• Student Registration
• Non-Academic Registration
• Included Materials

For a company that's trying to reach more customers, selling on Amazon might seem to be a no-brainer. But there are plenty of risks: A firm might get dragged into a price war with low-cost competitors, and Amazon, not the firm, will own the data on customers--and could use it to create its own competing products. In this fictional case study, the head of marketing at a young e-bike maker thinks through the pros and cons of selling on Amazon and of sticking with a direct-to-consumer strategy, and considers the long-term implications of each for his brand.

This HBR Case Study includes both the case and the commentary. For teaching purposes, this reprint is also available in two other versions: case study-only, reprint R1902X, and commentary-only, R1902Z.

Mar 1, 2019

Discipline:

Industries:

E-commerce industry, Retail trade

Harvard Business Review Digital Article

R1902M-PDF-ENG

We use cookies to understand how you use our site and to improve your experience, including personalizing content. Learn More . By continuing to use our site, you accept our use of cookies and revised Privacy Policy .