EkaLore defines Aliens as Category Killers, enterprises that invade from a completely different marketplace and up end the traditional order of a marketspace. They possess assets from their current market which they can apply to a completely new market and vacuum the profit from the other market players.
Aliens invade unrestrained by traditions, rules of thumb, or mindset. Traditional competitive tactics may have limited effects. The consumers or business buyers often win when an Alien disrupts regular practices.
For example, Amazon is disrupting commercial and industrial sales just as it has conventional consumer retail sales. Amazon Business and other programs change how buyers use information to make decisions, and empower the buyer to make better decisions faster. New Amazon features do this in two ways:
1) Streamlining the data needed to make a buying decision
2) Adding information to increase buyer willingness to execute a purchase
Buying industrial or commercial goods requires knowledge of shipping details that vary by vendor, location, and history, amongst other things. Purchasing through Amazon reduces those choices and eliminates data by standardizing timing and cost of delivery. The buyer no longer must factor in cost of shipping or scheduling (with a reasonable degree of confidence). This lowers their perceived risk and effort.
The Amazon buying process adds information to increase buyer willingness by providing transparent pricing comparisons and clear stock level/deliverability at the moment of purchase. Competitive price comparisons for exactly the same product (Amazon ASIN) is provided automatically. Alternative offerings are advertised at the point of purchase.
For commercial and industrial procurement this reduces required ‘touches’ for example:
Is the product in stock?
Do you guarantee performance?
Where is my product right now?
In this case, Amazon has answered all these questions upfront. Amazon has already familiarized 200 million consumers at least (Prime membership) to doing business this way. Now Amazon leverages consumer know-how to move into newer commercial and industrial markets.
All this means that business buyers can make faster, better-informed decisions with less risk. Manufacturers and suppliers also gain advantages. Distributors may find that their place in the buying ecosystem has been partially or completely disrupted.
If you’re hesitating to use Amazon, or another Alien inspired service, for industrial/commercial purchasing your enterprise may be put at a competitive disadvantage to competitors who do.
EkaLore can help enterprise and manufacturers make better decisions about where to purchase. Contact us at sales@ekalore.com to set up a conversation.
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