The Power of Amazon
A domination story in the making and the companies at the other end.
You must be an alien to have not purchased a product through Amazon, and if you haven't, you've presumably heard of Amazon. An online commerce website, Amazon started off as a book store and now in 2017, you can literally by anything that you need from this powerfultool.
Easy, convenient and fast may be the first three words that come to mind when people think of Amazon. With hints that Amazon processes 35 orders per second in their warehouses, you don't need to be a mathematician to know that, that's a lot of transactions per year. With people moving from in-store purchases to using online sites, Amazon has implemented it's foundation into establishing the most powerful e-commerce site in the views of so many.
Why so much domination?
With Amazon's stock price recently surpassing $1000US, many people continue to have high hopes and confidence with Amazon's growth. And whyshouldn't they? One of the many reasons for Amazon being an effective dominator, is their customer service. With high customer feedback and high customer satisfaction, there is no doubt that Amazon has formed a bond with customers. Amazon possesses a value that many other companies lack and this is, trust.
Amazon may not be the cheapest but that doesn't matter when customers keep coming and coming and coming because they trust Amazon and know that if they do experience a problem, there will always be a solution equivalent and if not, even of greater value.
And there is no surprise that Amazon has one of the most robust and quickest delivery services. Why would you go in-store if you have the ability to press some buttons and get your purchase on the same day?
Why companies will always be chasing Amazon?
Here comes the competition. But can companies afford to compete with Amazon? Are they just digging themselves into a bigger hole? The e-commerce bubble is huge and I'm certain that each one of you reading this can name at least several.
There are two strong and fundamental truths that companies disregard. And the main reason these truths are being passed upon, is because failing companies don't want to know the truth. They get stuck "in the rut".
#1 | Bad customer service, bad company
If you treat your customers poorly, your customers will treat you poorly. It is simple cause and effect. As stated in the book 'Rework' by Jason Fried and David Heinemeier Hansson, "All companies have customers. Lucky companies have fans. But the most fortunate companies have audiences. An audience can be your secret weapon." Failing to tick fundamental truth numero uno, is already a bad start.
#2 | Copying can't make a great company
...unless copying is the product you sell and you copy to a standard of which other companies cannot compete. In order to make great change, you cannot just improve incrementally on an aspect. Many companies and brands are now copying Amazon, not knowing that they are shooting themselves in the foot.
If you are the slower runner, it is highly unlikely that you will win against the fastest runner who already is 10m in front of you. In this case, Amazon is the fastest runner.
Amazon in the future
A monopoly. Governments are already fearing how large Amazon is and will be. And there's no stopping them. Well-trusted brands with firm foundations such as Amazon will always control the market or industry. And with these well established companies, communities are created. Sellers and buyers gain a higher trust level; quality is assured and speed is of the essence.
And Amazon is only 23 years old...
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