What can we learn from Amazon?

In Europe Amazon is still seen as a book seller that occasionally ventures into other product categories such as games and movies. In reality Amazon has created a complete ecosystem that allows it to operate in every domain of 21st century life.

What has Amazon got to offer?

Amazon Echo is a speaker-like object that allows you to engage in conversations about domestic and business issues. From controlling the lights and the temperature, over ordering food and flights to answering questions based on internet searches.

Amazon Prime is a membership concept that is used by 40% of Americans. It gives access to 2 hour delivery service on thousands of items, offers a wide range of movies and music on demand making it a competitor for Netflix and is offering a series of free or early access features such as free photo storage, ad-free music sharing and allow for early access to super deals reserved for Prime Member.

Amazon Dash is a simple wifi-concept that allows over 100 brands to bring beacon-like order/reorder buttons into households. Out of  coffee? Just click the Maxwell House Dash button and coffee pads are on their way.

Amazon Basics and Amazon Essentials are Amazon-branded private label products that live inside the 250.000.000.000 direct marketing Amazon ecosystem and can surf on the trust and credibility of the Amazon brand.

Credit cards and IoT. Amazon is rapidly moving into other activities. The Prime members can get a credit card with a 5% back on  purchases.

A never-ending growth

With the acquisition of 2lemetry, Amazon integrated an IoT-platform into Amazon Web Services. This integration is seen as a major engine for further growth of Amazon and Deutsche Bank predicts that one day soon Amazon Web Services may become bigger than Amazon is today.

Growing and investing. Amazon grows at 25% per year and accounts for 60% of all retail growth across categories. It is investing 10 billion per year in R&D and has found ways to maintain a start-up culture although it is rapidly approaching the 3 trillion annual sales mark.

What can we learn from Amazon?

Amazon is an example of successful disruptive business modelling. It changed the way we order books. It changed the way we think about fast delivery. It is changing the way we use IoT and it is changing the concept of customer loyalty.

Being present in almost every domain of private life and business and delivering prime services, products and exceptional customer experiences Amazon has created an ecosystem that is giving competitors in many industries the chase. From book to food retailers. From clothing and apparel to white- and brown good appliances chains. From credit card to home delivery service companies.

Much of this success is the result of a vision that goes beyond transforming an industry but is all about transforming customers lives by offering integrated comfort packages.

This article is inspired by an analysis of the Amazon business model lock-in by Jon Nordmark, partner at Thrive Commerce based in Philadelphia published on May 12th 2016 on LinkedIn.

 

 

Share nowShare on FacebookShare on Google+Tweet about this on TwitterShare on LinkedIn

Comments are closed.