Retailers should not try to compete with Amazon.com on price but instead should define their own unique business strategies, provide customers with multiple ways to be satisfied, says Tompkins International CEO
RALEIGH, North Carolina
December 7, 2012
– Some of the world’s largest retailers are supercharging their supply chains after Amazon came out on top in online sales on Black Friday and Cyber Monday.
Price, selection, convenience and experience are the biggest reasons why Amazon is everyone’s competitor this holiday season, according to Jim Tompkins, prominent business blogger and CEO and President of Tompkins International.
“The giant brick-and-mortar retailers are falling all over themselves to offer faster and less expensive shipping, as well as extended store hours and offers, but they are only beginning to understand how to leverage their physical locations in combination with their online stores,” Tompkins says.
The best way to best compete with Amazon is for each retailer to define its own unique business strategy and then develop the supply chain as a vehicle to deliver this strategy to customers. Getting into a price war with Amazon is not the best strategy, according to Tompkins.
“You can’t just copy what Amazon is doing and expect to succeed,” he adds. “This would only be a quick fix. The real key is listening to customers and providing them with multiple ways to be satisfied with their buying experience and remain loyal.”
For more insight, see this infographic, 4 Reasons Why Amazon Is Your Biggest Competitor, and watch the Amazon Effect video.
About Tompkins International
Tompkins International transforms supply chains to help create value for all organizations. For more than 35 years, Tompkins has provided end-to-end solutions on a global scale, helping clients align business and supply chain strategies through operations planning, design and implementation. The company delivers leading-edge business and supply chain solutions by optimizing the Mega Processes of PLAN-BUY-MAKE-MOVE-STORE-SELL. Tompkins supports clients in achieving profitable growth in all areas of global supply chain and market growth strategy, organization, operations, process improvement, technology implementation, material handling integration, and benchmarking and best practices. Headquartered in Raleigh, NC, USA, Tompkins has offices throughout North America and in Europe and Asia. For more information, visit http://www.tompkinsinc.com.