Grocery Competition Heats Up With Amazon Fresh Going Gratis
Grocery competition continues to intensify as the rules of the game evolve and all of the major players throw in their hats to capture, or at least keep, their share of the market. With traditional modes of operation constantly being challenged in this industry, grocery store chains have to keep up with the new rules or risk losing customers.
Perhaps the main disruptor in the classic supermarket model is Amazon (NASDAQ: AMZN), which is of course not surprising considering it's disrupted any industry it's gotten its hands on, and it's not afraid to get its hands dirty in its quest to take over retail, hostilely or otherwise.
But the insatiable hunger for more can sometimes influence power brokers to make less than wise decisions. What went into Amazon's remarkable announcement last week that it's going to offer free grocery delivery to Prime members, and will this grand plan bring the company the hefty supermarket share it's been aggressively courting for years, or can it backfire?
Source Fool.com
