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Improving online capabilities, strengthening services and enhancing customer relationships isn’t enough to fight Amazon. This article, the third in a series on distribution’s omnichannel future, explores where we think Amazon Business is heading with its adaptive model and why its threat to your business has turned from disintermediation to displacement.
In September 2016, RBC Analyst Deane Dray reviewed transcripts from antitrust litigation on the proposed Office Depot and Staples merger (which was ultimately blocked by a federal court). He wrote that during depositions, Amazon Business head Prentis Wilson identified Grainger and Staples as his business unit’s primary competitors. Dray concluded that Wilson singled out Grainger because the company sold to many small and medium-sized businesses, which was apparently Amazon Business’ target market.
We think that’s too narrow a view of where Amazon Business is going. There’s more at stake here – much more. Amazon Business is aggressively pursuing large procurement organizations – including Siemens, Stanford University and countless others. The way this plays out over the next few years will impact every type and size of distributor.
To read the rest of this article plus much more analysis of the threat distribution faces with Amazon Business, click here to download our free report, Your Amazon Business Playbook.