Great analysis! I agree with you on the diagnosis and how wrong strategic decisions led Mattress Firm to file for Chapter 11. And I also agree that a multichannel approach is the way to go to try to catch up to their competitors value proposition. I wonder if they have the operational capabilities to pull this off, or if they should just focus on potentially acquiring one of these DTC companies and try to merge both value propositions into one shopping experience.
Great article! I agree with you, Mercado Libre is one of the biggest success stories in Latam and it is exciting to see how much they’ve diversified over the years.
However, I wonder how they’ll evolve as they have been investing a lot in their logistics arm as a way to fend off a potential entry from Amazon into the region, while also having to focus on their fintech products which is where most of the growth is going to come from in the future. I’m curious to see if they can succeed in two such operationally complex objectives at the same time.
Great post! As you point out, Amazon has done a great job at targeting millennial consumers in more affluent urban centers. I think it complements their value proposition very well and allows them to leverage the data they already have in many useful ways.
However, in curious to see how they will scale this. Given how unstable the unit economics in this segment have proven to be, in curious to see how they would do in targeting more price sensitive users, who wouldn’t shop originally from Whole Foods, as well as less urban areas en finally international markets. Even though they are dominating the space at the moment, I would be curious to see if a player starting from any of those segments could disrupt them in urban centers where Amazon is already established as the leader in grocery delivery.