The Seattle-based Amazon Groceries PickUp service is a wonderful example on many avenues.

 

Firstly, it exemplifies how the use of technology is transforming our daily lives. Secondly, and more powerful, it shows the power of a trusted brand: entering new product categories, challenging well-established dominant players. For the Walmart, TESCO, Carrefour, etc. this is a big warning on the type of competition to face worldwide, soon.

The same phenomenon is taking place in multiple¬†industries, such as Banking, where FinTech initiatives are slowly but surely eating share that was traditionally controlled by big financial institutions…for centuries.

However, as always, some medicine should be use with care: entering new product categories, even when having a trusted brand in certain business arenas, may lead to an over-stretching of the brand. The problem is recognising the limits of that phenomenon can not be easily anticipated. Success in a brand, may drive it to its own “incompetency level”.

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