Amazon's Acquisition of Dollar General: A Strategic, Logistical, and Financial Analysis of the Proposal
Open Access
- Author:
- Ator, Gabrielle Antonia
- Area of Honors:
- Supply Chain and Information Systems
- Degree:
- Bachelor of Science
- Document Type:
- Thesis
- Thesis Supervisors:
- Robert Alexander Novack, Thesis Supervisor
John C Spychalski, Thesis Honors Advisor - Keywords:
- Amazon
Dollar General
acquisition
strategy
Zappos
Whole Foods
Diapers.com
logistical
financial
in-store
online
retail
e-tail
market-share - Abstract:
- Since its inception in the mid 1990s, Amazon has transformed itself from an online bookstore into the world’s largest online marketplace. The company has built its success on its ability to meet customer needs solely from an online perspective. However, other companies have learned to imitate Amazon’s quick order fulfillment and shipping policies, the very component of the company’s business model that once allowed Amazon to remain far above industry competition. The time has come for Amazon to explore its next growth strategy, one that should be based on how the company can serve consumers from an in-store perspective in addition to online. Given the company’s history and desire to grow as quickly as possible, developing an in-store purchasing option would most likely be done through an acquisition. Thus, Amazon’s rumored acquisition of Dollar General. The discount chain excels in areas where Amazon lacks, with a business model structured around selling low priced products to consumers from one of its physical storefronts. Consequently, this research serves to analyze if Dollar General should be Amazon’s next acquisition by looking at the strategic synergies between the two companies in addition to the financial and logistical implications of the acquisition. The result of this analysis is that if Amazon is to consider breaking into the brick-and-mortar retail space once and for all, acquiring Dollar General would be the most beneficial way for the company to do so.