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What Industry is Immune to Digital Disruption?

10/4/2017

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Digital is disrupting every industry and changing the landscapes for everyone involved.

In August 2017, digital technology giant, Amazon.com Inc., acquired Whole Foods for $13.7 billion dollars. Affectionately known as “Whole Paycheck”, Amazon delivered on its promise of reducing Whole Foods prices by as much as 43% almost immediately after the closing of the deal.

According to research firm, Thasos Group, and The Wall Street Journal, Whole Foods has seen a boost in foot traffic to their brick and mortars (up 17% YOY) as well as an increase in sales of its private label, 365 Everyday Value, through Amazon.com ($1.6 million in the first month).

Some of the largest grocers felt the impact of Amazon’s purchase and price cuts. Once loyal customers of large retailers like Wal-Mart, Kroger, and Costco defected to Whole Foods in its first week of reduced prices. Wal-Mart took the largest hit, with 24% of Whole Foods new customers coming from the low cost leader, according to data from Thasos Group.

So what does this mean and why should we take notice?

We are experiencing a critical time in this economy. The landscapes are changing rapidly and digital technology is making it possible for anyone with intellectual capital to create wealth and deliver value.

Digital technology is transforming our economy and every industry from media to healthcare is being affected. The grocery industry is not immune to this shift.
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Entrepreneurs and business owners, who want to survive in this new economy, should be thinking digital - integrating it into their culture, strategy, and organization. Businesses that do not take advantage of this shift will inevitably be left behind.

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How do you think digital disruption affects your organization? Is it a threat or is it an opportunity?
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Contact us if you are interested in creating a digital strategy for your organization.
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Author

Cera Ridley is a Partner/Business Engineer at Ujamaa Solutions LLC and is committed to helping clients build sustainable Pan-Afrikan organizations through strategy and organization design.​ cera@ujamaasolutions.com

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