Amazon’s Amazing Strategy To Control The Global Economy:
The components of Amazon’s strategy are clear. Jeff Bezos have formulate its as early as 1997: “to build the world’s largest store”. Its logo symbolize this ambition from the start by the yellow arrow, linking the letters A and Z. It’s a way of saying: “Amazon sells everything from A to Z”.
At first, Jeff Bezos explained in “Get Big Fast”, that he wanted to be a “customer company” instead of a “product company”. In other words, a company which focus above all on the customer. Starting out by selling books was simply a way to educate customers with a product that was easy to present on the Web.
The global innovation leader
The rest is logical. Huge investments to introduce a unique customer experience, provide an exceptional offer and ensure an unprecedented delivery service. Cascading innovations with the purchase of one of the first intelligent agents (Firefly) to make product recommendations. There is also the introduction of ratings and comments on items, one-click ordering, free shipping, etc.
In 2005, Amazon will gain a foothold in the publishing industry with the purchase of BookSurge (renamed CreateSpace) and invite customers to purchase Kindle. The arrival of the marketplace will allow brands to sell their products online on Amazon and will contribute to considerably increase the size of the e-commerce giant’s catalog.
A strategic pivot will allow the firm to launch itself into cloud computing, with Amazon Web Services (AWS) in particular, and to become the competitor of Oracle, IBM or Cisco.
Today, Amazon is putting a foot in our homes by encouraging us to attach “dash buttons” to our fridges. It takes part in the Internet of Things. It is accelerating its efforts in the field of artificial intelligence with Alexa, the voice assistant of the Amazon Echo.
Amazon’s amazing strategy
But Amazon’s real strategy is not the official one. In 2016, Amazon was granted a license “Ocean Transportation Intermediary” by the Federal Maritime Commission to set up a shipping service. Put another way, Amazon can now transport other people’s goods. This service, already called FBA (Fulfillment By Amazon) will allow Chinese companies to export their goods more efficiently and cheaply to the rest of the world.
The ocean freight market is worth $350 billion a year, but offers low margins. It’s a very unattractive business, unless your name is Amazon. Therefore, cost of labor explain the price of transport : loading and unloading of goods, administrative management …
Therefore, Amazon fully understands that it can deploy entire fleets of algorithm-assisted robots to reduce these costs. With its drones, semi-trailers, and Pacific Rim shipping agreements – all overseen by Jeff Helbling, a former U.S. Navy captain and now technical advisor to Jeff Bezos – Amazon is building the world’s largest logistics infrastructure.
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