How Amazon’s Bottomless Appetite Became Corporate America’s Nightmare

from Bloomberg

Amazon makes no sense. It’s the most befuddling, illogically sprawling, and—to a growing sea of competitors—flat-out terrifying company in the world.

It sells soap and produces televised soap operas. It sells complex computing horsepower to the U.S. government and will dispatch a courier to deliver cold medicine on Christmas Eve. It’s the third-most-valuable company on Earth, with smaller annual profits than Southwest Airlines Co., which as of this writing ranks 426th. Chief Executive Officer Jeff Bezos is the world’s richest person, his fortune built on labor conditions that critics say resemble a Dickens novel with robots, yet he has enough mainstream appeal to play himself in a Super Bowl commercial. Amazon was born in cyberspace, but it occupies warehouses, grocery stores, and other physical real estate equivalent to 90 Empire State Buildings, with a little left over.

Investors have grown to love Amazon.com Inc. despite, or perhaps because of, its contradictions. Shareholders pushed its value above Microsoft Corp.’s for the first time on Valentine’s Day and to an all-time high of $774 billion on March 12. Only Apple Inc. and Google parent Alphabet Inc. remain more valuable, and unlike them, Amazon breaks all the rules of the modern corporation. It’s also wielding its power against an unprecedented range of other businesses.

Bezos’ brainchild has been fast-growing, influential, and anomalous for most of its 24 years, but it’s entered a new phase. Its dominance can’t be contained to a few areas such as books, electronics, or even computer networks. Remember my colleague Brad Stone’s book The Everything Store? That title may have undersold Bezos’ ambitions. He seems to want to establish his place in every industry. Parcel delivery, supermarkets and packaged foods, apparel, trucking, auto parts, pharmaceuticals, real estate brokerages, makeup, concert ticketing, swimming pool supplies, and banking are just a sampling of the fields battered at various points in the past year because of Amazon’s encroachment or even rumors of its interest in entering them. Amazon declined to comment for this story.

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46 Responses to How Amazon’s Bottomless Appetite Became Corporate America’s Nightmare

  1. Mark Marino April 4, 2018 at 12:58 pm #

    The market power of Amazon is nearly unatonable. The idea that Amazon took a hige loss in 2014 when it introduced the Fire phone to then rebound to new highs within a year shows the utmost resilience Amazon has against their competition. Amazon is challenging companies such as Target and Walmart that had a near monopoly of the “convenience” store market. Now, Target and Walmart are playing catch up to Amazon because they are not nearly as capable to mass-ship products with the speed of Amazon Prime. Now, Prime is experiencing a bit of a scare as President Trump wants to open an investigation that looks into how much money the postal service is losing. Trump has some traction although he will probably lose considering Amazon is one step ahead, unveiling their own shipping service. Although denied initially for drone testing in the United States, Amazon now is testing in the UK with drone technology. They are delivering 5 pound or less packages at a milage of 5 miles. This is the physical constraint of drones not being able to deliver further or heavier products. But, drone technology is ever evolving so there will certainly be a day when drones will be able to deliver packages further. On top of drone technology, Amazon has its own fleet of cargo planes, being able to take packages from their warehouses, deliver the packages via their trucks to their airplanes to ship anywhere in the country over night. The sheer power of Amazon is nothing to underestimate. Crazy part is that they have faced some anti-trust allegations but have never been sued formally for having a monopoly. This is something that I find interesting because they are mastering the packing, shipment, and delivery of products. From putting the post service into bankruptcy to putting big retailers out of business, Bezos and his team is slowly but surely making a huge impact on the US economy. They face hardly any big players besides Alibaba in China which is the Amazon equivalent. It will be interesting to see what Amazon has for us in the future.

  2. Nathaniel Valyo April 4, 2018 at 11:59 pm #

    I often forget that Amazon really took off only within the past three years. It is mesmerizing how a single company can simply mention their desires to enter a specific industry and immediately stock prices of the companies currently in the industry drop. There really is no company that can compare with Amazon, at any point in time.

    Love them or hate them, through watching Amazon’s business plan unfold, it is easy to see how incredible the company truly is. They are pulling off feats no company could ever dream of. Jeff Bezos’ ability to predict profitable industries for Amazon to not only enter into, but greatly succeed in, is unmatched in human history. Having the size and clout to deliver products to people within two days all while being able to offer their products at incredibly low prices is exceptional. Additionally, by purchasing Ring and testing drones to deliver products to customers’ doors, Amazon will soon be entrusted to have an employee (or drone) enter the person’s home to drop off their package. No other company even comes close to having that sort of power and effect on its customers. Second only to Microsoft and Alphabet Inc., Amazon has quickly turned into one of the most valuable companies in the country.

    Although Amazon has made history in terms of size, growth and value, the bigger they are, the harder they fall. The article ends with a claim that big tech companies like Amazon never dominate the industry for very long, meaning all of Amazon’s accumulated wealth only means that they have much more to lose. I was never a fan of Amazon’s HQ2 proposal; I was always under the impression that the move was just Amazon being filled with pride and looking for hefty tax breaks. I am especially convinced that Bezos will select Washington, D.C. or one of the surrounding areas as his location for HQ2 for lobbying power and a lower likelihood that his company will be questioned for violation of antitrust laws. With harsh criticisms towards Mark Zuckerberg and the Facebook/Cambridge Analytica scandal, however, it would not be unreasonable to assume that a similar scandal may unfold with Amazon’s Alexa in the near future. While yes, Amazon is benefiting the economy in ways we have not seen before, their pride may soon get the best of them if they do not take more careful steps.

  3. Joel Valdez April 5, 2018 at 3:12 am #

    I almost consider myself lucky to live in an era of time where I can witness possibly the largest, most powerful, and greatest company of all time grow and to become the biggest powerhouse of all time. Never before have we seen a company be so ambitious to enter a vast variety of industries (not businesses, INDUSTRIES), and come out successful at every turn. This is what Amazon has been able to accomplish over the last four years. They saw their value explode, and they have been riding that wave ever since, pumping out service after well-thought out service. Furthermore, it seems that once they see the early signs of success in one industry, they quickly jump at the opportunity of entering another industry. Part of this success comes from the trust they have built with their customer base. People trust Amazon, a lot. Most of us load our credit card information and other payment accounts to our Amazon accounts and take full advantage of that two-day free shipping. They never seem to fail us when it comes to getting that product to our doorstep by their given deadline, even if they have to send out their own delivery vans to do so. They simply get the job done, always. Because of this, the trust of their customers continues to grow. In an article by The Verge, “people trust Amazon almost as much as they trust their bank.” After clearly securing the strong trust of customers everywhere, they know that these people will remain invested in them when venturing into new industries. If Amazon is tied into it, it must be something special, right? That is what most people would think to themselves when noticing the further involvement of Amazon in a given industry. They are Amazon die-hards, and are feel confident purchasing from Amazon, no matter what they are purchasing.
    Another point made in this article that I always found fascinating is how Amazon never made it a point to boast about their web services as much as they have done in the past couple of years. They have quietly been able to build such a monstrous empire that isn’t even tangible. What’s more, is that it took them posting a poor quarterly report, to introduce the numbers of their web services. As if it was something they were hiding in their back pocket to convince the public, investors, and industry experts alike that they are more than a one (or two, or seven) trick pony. Without advertising such services, they focused on being the reason for smaller companies to rise in their respective online fields, using the computing power of Amazon, for a fee. This brought in significant revenue, and showed how Amazon is positively helping the market grow. It seems that with the revenue generated from their web services division, causing such a high profit-margin, they can fund new ventures into new industries.
    Amazon has been able to make their presence known in every industry they involve themselves in. They have seen positive numbers across the board. It is very easy to forget how badly their smartphone venture completely failed just a few years ago. Nevertheless, they persevered and continued to build their name and brand value. They may be insight as to how whenever they announce the next industry they plan to venture into, stocks of existing companies within the industry suddenly see a negative spike in stock value. The name value of Amazon means so much to investors, that they are willing to pull out of other companies and load up on Amazon stocks, because they are confident about the long term earnings they can generate for themselves.
    This correlates to businesses that want to work alongside Amazon because they are aware of the business they can do by selling their products on the more widely used platform. On the other hand, Amazon’s ambition and subsequent dominance has lead to companies like Walgreens to look into merging with another pharmaceutical company, as mentioned in the article, to scare off Amazon from making a splash into that industry. Amazon is a polarizing powerhouse everywhere you look. They are too big to fail at this point, because they are always growing or moving onto the next thing. I personally see Amazon being able to keep this up for the next decade or so.

  4. JERRY WU April 5, 2018 at 2:18 pm #

    To know that Amazon only took a couple years to begin taking over several major industries is simply mind-blowing. Not one person except for Jeff Bezos saw this coming. His ability to pull off make profits in the right industry at the right time is astonishing. Even though I am not a fan of how they are “taking over the world”, I will admit that their growth in economies around the world is exciting to watch. This is all because of how fast tech grows every year. With fast delivery times, extremely low prices, and high-tech drones being in place, Amazon will soon have unlimited power and value on its customers.
    However, the fact that they are growing rapidly could also possibly mean that they could easily fall apart as well. They have a lot more to lose and the company only gets harder to maintain (in terms of value). With tons of scandals floating around the nation these days, I would not be surprise if one involves Amazon in the near future. They continue to benefit from our economy, but they could potentially be a part of the reason why even more businesses go out of business.

  5. Ryan Mack April 5, 2018 at 11:20 pm #

    Could Amazon be like the next AT&T, in being broken up? Although the company seems very large now and has a hand in virtually every retail market in the United States, it still only accounted for roughly 2 percent of all retail sales in the U.S. in 2016; Amazon’s retail sales brought in $135 billion of the nearly $5.5 trillion in total U.S. retail sales. Moreover, monopolies generally come with higher prices and decreased competition, which at the moment is relatively rare. Additionally, 90 percent of all retail sales in the United States is still conducted in physical, brick and mortar stores. This is where it gets scarier, but at the same time more interesting, that Amazon still has room to grow and expand. For many companies, Amazon is getting too close for comfort for each of their industries and they are afraid of which industry will get ‘Amazoned” next. Amazon acquired Whole Foods Market Inc. in June of 2017 and expanded into the retail grocery market. The company has plans to partner with a bank and start offering its own credit card to small businesses which would compete with American Express as well as plans to introduce and develop its own delivery service which would compete with FedEx and UPS. Of all the retail areas there are, Amazon still is lacking strong online presence in a few. In the section of retail that is groceries, furniture, custom-made clothing, and home appliances there already are some services and companies that sell online, but most people, myself included, prefer to shop for those things in a physical store because they are products you usually want to physically pick up, hold, and look at before purchasing and that’s difficult to do online. Amazon, though, will probably figure out a way to get those stubborn areas under its online control. They already own, operate and are purchasing physical retail space, and will probably end up ‘revolutionizing’ the brick and mortar shopping experience as opposed to simply eliminating it. It will be interesting to see what the company does to change those retail areas. I agree with the article when it says that the scariest fact of the whole situation is that Amazon still has room to grow, but at the same time I find it interesting to be experiencing and watching Amazon’s growth and to see where they go in the future. They’re everywhere, and many people have become so reliant on several of the company’s services that they forget that Amazon is still a young company.

  6. Luke Nadolny April 6, 2018 at 10:49 am #

    Amazon has become one of the biggest companies in the world for good reason, they have so much inventory that they threaten even a respected company’s business. Americans are buying most of their products online now and most of it is due to the innovation it has brought to the market. However, this is, as it states in the article, terrifying to other companies that do not have the amount of products that Amazon carries. The sheer amount of power that they have in the market allows them to keep their consumers happy, while also developing new ways to bring your package to you, recently introducing the two day shipping. What makes Amazon so great is that, on top of the fact that they have almost anything, they can bring the packages to your door faster and cheaper than many other companies can, which gives them an edge in the market. All of these reasons are why other companies look at Amazon are not just a competitor, but as a risk. People see online shopping as the fastest, and cheapest way to receive products, and the consumer does not have to leave their house to purchase it. Online shopping is already taking business away from other companies, now throw in Amazon and their hold on the market and it becomes disastrous for companies that have not gone online. Even if a company goes online, Amazon has already gotten a massive lead ahead of them so there is virtually no hope of catching up to them. Someone looking to open up their own business will have to deal with the potential customers being taken away from them, just like the issue of net neutrality. If anything, the threat of Amazon is more dangerous than the reversing of net neutrality, because Amazon will be there with or without net neutrality while others will be looked over. The fear of any company is the thought of losing customers, and with Amazon leading the market, there is little anyone can do to stop them from tightening their grip.

  7. Daniel Colasanto April 6, 2018 at 12:17 pm #

    Okay, well it’s pretty clear that whoever wrote this article (I didn’t care to check), doesn’t like Amazon and is possibly jealous of their mammoth success in business. Why? I have no clue, like I said it may be jealously, that’s a big one, or possibly fear? That’s just as likely. Regardless, I live life knowing that I am intelligent human, not believing in outside forces to come and save me from my problems, because when problems do arise, I analyze them in points how they are dangerous to my life, not how I can escape or persuade people to fear the existence of the threat itself.
    Fear is attributed to the weak. Danger is real but fear is not. Amazon’s corporation is growing at an exponential rate and it is clear that they are a major threat to many industries and countless businesses. However do not fear the threat, be aware of the situation and adapt to the evolving environment, shifting around you. You only have so much time in life before time itself removes you from a new world it is creating. And so just like the state of nature of the art of war, if you are not prepared when the storm comes, don’t bother running or telling people to be fearful, because you’ve already lost. The world is not forgiving and neither should anyone expect Amazon to be. They are a beast that has been cultivating through the passing of time and a product of the innovation of technology and services not yet capitalized.
    Blame does not belong in productive environments but if there is any feeling one should have towards a company stronger than them, growing faster than them, and more diverse than them, can only blame themselves for not seeing the furthest into the future. This what I think about Amazon’s dominance in the U.S economy. Rather than spewing facts and statistics from the article like I know many students will do, I actually am providing a foundation for critical thought to stem from. Unlike the author of the Bloomberg article I feel that it is an amazing and inspiring natural evolution of the man made capital system to see a company as great as Amazon come into fruition as quickly as it has. It is a remarkable achievement of Jeff Bezos and the Amazon corporation to have gained market share the amount of industries they’ve entered into. Nothing short of excellence in business and in life. So in conclusion, do not fear Amazon because you deep down inside feel unconsciously weak. Observe what they have done, learn from their mistakes and their successes, evolve a business plan or model of your own, and have faith in yourself that you can too create a business that can compete if not destroy them.

  8. Shakur Mckinney April 6, 2018 at 1:01 pm #

    This article really taught me alot about Amazon as a business. For me I havent really delved into the whole Amazon thing yet, just because i’m just the type of consumer that wants a good on the spot, in an instantaneous way. I know Amazon offers things like next day delivery but sometimes even the next day is not fast enough for me, I like to get products as soon as I want them. But after reading this article I find myself wanting to make the switch to ecommerce. The author talks about the huge spectrum that Amazon covers with their services and I thought it was flat out amazing. The author brought up how Amazon has its hands in numerous different fields including parcel delivery, supermarkets and packaged foods, apparel, trucking, auto parts, pharmaceuticals, real estate brokerages, makeup, concert ticketing, swimming pool supplies, and banking. For one company to be able to cover so many different things,its just amazing and I can see why Amazon is the third biggest company in the world. I also liked how the author brought up Amazons shortcomings with the fire phone in 2014, how their revenue growth in the 2014’s holiday season was the second­-worst since 2001, and how Amazon’s stock price fell more than 20 percent; things were looking really bad for the company. I think that helps to highlight that whenever you run a business it’s a huge risk, it isn’t for everybody. There will be a lot of times where it looks like the business is through, but if you keep working for what you want, inevitably for the most part things will turn around and that’s exactly what happened as the author describes in the following year of 2015, Amazon leapfrogged to number?6 on the list of most valuable companies. The reason Amazon made that huge jump that year is because as described by the author they began to focus on their “ staggering web service” which started into 2006 but was not focused. Im assuming it was ahead of its time, I don’t think anyone was ready for e-commerce in 2006. Hearing this was great because I think it applies to life in general. A lot of people gain success and continue to do what they did to get that success, which is great for the most part; if it aint broke dont fix it. But the problem is that people sometimes tend to neglect the changing of time and how that affect the world. I think this applies to everyone not just business. If your a singer, your lyrics may have been good at a time but now they might be out of date. If your a comedian your jokes may have been funny at a time but now they’re not, and if your a business the service your offering may have been good at a point in time but as the world evolves it may become less valuable. The point of saying this is to make people realize that you have to adapt with the times, you can’t do the same thing forever and it expect it to stay popular, your target audience will die out or grow up. I think Amazon did a great job on recognizing that by choosing to focus on their web services when they did.

  9. John Mundia April 6, 2018 at 3:26 pm #

    Jeff Bezos’ Amazon has become a behemoth of an incorporation. The reach that Amazon has in other different industries propelled them to the top of the elite businesses. The success has come from very rigorous work hours, throughout the company. In many ways, Amazon has become a very difficult place to work at. At times people have been caught to have been crying because of the workload that they had. This environment is very powerful, it is the driving source in which Amazon pushes its workers. The motto and belief of the company are to be as resolute and relentless as possible. It is very clear that the hard work done in board meetings down to the warehouses is the driving force in Amazon’s success.

    For Amazon, the way in which the business was built from the beginning is a very important factor. Instead of taking a business model that had been tried and perfected for years and years. Jeff Bezos was able to create a system for Amazon by Amazon. Amazon runs on its own separate for the most part from other businesses. Starting with Amazon Web Services, which allow for business to grow and expand their online presence. Amazon has offered this to other businesses around the world. AWS accounts for the largest part of Amazon’s profits and returns. This ability to be self-sustaining is a characteristic found in newer businesses across the world. It is imperative that any entrepreneur to be able to replicate a portion of the way Amazon does business cause it leads to huge success.

  10. Michael Polito April 6, 2018 at 4:28 pm #

    Amazon is a company that many people do not understand how it got so big. Amazon is the biggest fear to everyone in corporate America because it feels like Amazon has a foot in the door of every industry. The company started out small now is the third most valuable company in the world behind Apple and Alphabet Inc. the company that owns Google. Amazon is valued at around 774 billion dollars in 24 years of being a company. It took time but Jeff Bezos pretty much has the company working in every industry, and they are not just working in every industry they are at the top of the charts. This is the real reason that other companies are becoming worried about the growth of Amazon. At the rate that they are going it feels like this company is going to provide any kind of product or service that you need. They are moving and growing so fast that it feels like no one else can catch up to them giving you the reason why competitors and other companies that do not even deal with the same kind of business are getting worried. Amazon who originally started as a platform to buy and sells items has now moved into other industries that many people would have never thought of. They currently own grocery stores and provide special services through the Amazon Company to make everything about grocery shopping easier.
    What Amazon is doing is truly amazing because they have yet to get in any legal trouble. There are multiplying and they are moving into other industries that they have never been a part of without any legal violations of creating a monopoly. Although they are not it feels like they are because they pretty much do everything and they are changing the way these industries do things because of the advanced technology they have at their disposal. They have more resources then anyone so if they want to get involved in a certain industry they will do it and probably do very well. This makes everyone scared because they can jump into any business that they want and they will put smaller companies and even bigger ones out of business. The big question is will they keep up with the pace they are on and continue to change everything. They are currently making it hard for companies to compete with them and if they continue to do so it will become impossible. They experiment with technology that other simply do not have. For example they are experimenting with drone delivery where they will have a drone drop off something that you ordered from Amazon. Last time I checked there are not many other companies if any that have the technology to try and star shipping packages via a drone. Things like this is what are making people in corporate America very nervous and honestly they should start to get a little worried. Amazon is dominating everything and I think eventually they will be worth more than apple and google. It does not seem like anyone can stop the powerhouse that is Amazon.

  11. Chris Lineman April 6, 2018 at 5:13 pm #

    Amazon is growing more rapidly than any other company right now and is a huge threat to many companies. The reason Amazon is such a threat is because the company seems to be going into each industry and so far does not seem to be struggling. In fact, Amazon is in the top of the charts of each of the industries it has gone into. People have coined the verb Amazoned because of it putting companies out of business. Also, lots of studies are being made on the “Amazon Effect.” The “Amazon Effect” is comparisons and charts showing competitors performance before and after Amazon went into their industry. This article shows Amazon’s effect on CVS when they decided to go into the healthcare field. CVS’s numbers quickly dropped. Lots of other companies show the same effect after Amazon took over their industry. Now, Amazon is working to keep improving their supermarkets. Its crazy to think Amazon has made about 774 billion dollars in only 24 years and is growing still. Not only growing, but hasn’t been in any legal trouble yet.
    It is almost crazy to think a company like this hasn’t been in legal trouble for becoming a monopoly. It has not become an monopoly yet, but it very much seems like Amazon could be one. I would be terrified to be in an industry that Amazon is in or going into. It is very difficult to compete with Amazon. The prices are usually good, the customer service is awesome, and the delivery process is so fast. The Amazon Go store that opened in Seattle seems like it could be the future of supermarkets and Amazon is way ahead of technology in that supermarket compared to many others. I have a bold prediction that one day, the Whole Food stores Amazon owns, will all become Amazon Go stores eventually. For now though, Amazon is studying how Whole Foods runs and how to improve it. Meanwhile, a trial run is also going on with Amazon Go stores. Not only are they improving or growing in sale, but Amazon is looking to build a second headquarters. I do not see Amazon slowing down any time soon. Amazon is an incredible company that is not going away any time soon.

  12. Alexa M April 6, 2018 at 5:21 pm #

    At this moment in time, Amazon has become the third on the list of the most valuable companies in the world, when just a few years ago in 2010 it was ranked the ninety-eighth. It is mindboggling to me that a company could surpass 95 other companies on that list to reach third place in such a short amount of time and it goes to show just how powerful Amazon has proved to be. Amazon has become such a threat in the business world that it has every industry on its toes. I am surprised to hear that Amazon, being as valuable as it is, has smaller annual profits than a company that ranks 426th on the list. Something that is really shocking to me is that out of every dollar spent online, 44 cents amazon is responsible for alone.
    What’s so scary about Amazon is that it is so different than any other corporation of the 21st century; it is starting to try to enter every single market. The “everything store” is crushing businesses in numerous industries because it sells almost everything and that is why the word “Amazon” has many businesses terrified. It also has many businesses on their toes because of the potential amazon has to grow and potential to hurt industries that it hasn’t touched, yet. Amazon’s CEO, Jeff Benzo, has hinted that he aims to enter markets such as parcel delivery, real estate brokerages, trucking, pharmaceuticals, makeup, supermarkets and packaged foods, banking etc. It will be hard to predict what other industries Amazon will be headed for in the years to come considering that we had no idea Amazon was capable of buying upscale supermarkets, Ring (a manufacturer of home security cameras), and planning to link up with a bank to create their own credit card to small U.S. firms. After the news of Amazon’s plans to create a credit card with a bank, shares of American Express Co. (AmEx), the company that dominates that market, dropped 1.4%.
    I use Amazon myself, but I believe their growth is getting too large for industries to handle and Amazon is becoming a like a monopoly of the marketplace. Amazon is great for low prices and convenience, but I think Amazon needs to leave enough business for everyone else. Amazon’s drive to have a piece of every industry’s pie might cost them. I hold the same view as the author of this article, Shira Ovide, that there is a real chance that Amazon could “choke on its own ambition.”

  13. Adam Facella April 6, 2018 at 5:30 pm #

    Everyone knows how much of a powerhouse Amazon is because of how much every single one of use it on a pretty regular basis. However I never knew exactly how powerful the company was with the amount of the market that they are dominating. Ovide brings up the statistic that Amazon is responsible for almost 50 cents to every dollar spent on online shopping. Having Amazon being almost half of online shopping orders is amazing to me considering how many different retailers have a presence online along with companies that are only online as well. Another statistic that Ovide brings up is the fact that they are the fourth most valuable company on the stock market only behind Google, Microsoft, and Apple. These are all major companies that everyone in America and people around the world know and Amazon is able to contest with the running in value. I think that Amazon will be able to overtake both Apple and Microsoft in stock price in the very near future because of the ability that Amazon still has room to grow as they continue to “Amazon” other companies. This is a verb which I never realized existed but it makes a lot of sense, as we see companies like Best Buy and other electronic companies slowing down and many going out of business due to Amazon. This is going to continue to happen from retailer to retailer until Amazon has a monopoly on the entire market of almost everything and then there will be many problems for them. Until the day when they end up getting too big, Amazon will continue to grow and dominate.

  14. Luis F Gonzalez Jr April 6, 2018 at 5:40 pm #

    Amazon is a nightmare for all corporations because of its massive size and influence in everything. They are very unorthodox and try to be involved in every industry. They try to undermine and be better than anyone else which is good as it brings better quality and more innovations to consumers but creates a less competitive market. How so? Well, they literally bankrupt companies and if they can’t, they buy them. Amazon is a monster and it is ready to fill its appetite.

    I believe Amazon’s ideology isn’t about monopolizing one industry but simply horizontally integrating themselves in everything. They have the purchasing power to invest in big projects. Most companies cannot compete because their profits comes only from one source, their main product or service. Amazon does not worry about that because by being involved in multiple industries it allows them to have income from multiple sources. This is bad for the rest of corporations because it screws with demand and supply causing them to lose money in the short run and have little options to be competitive in the long run. Amazon puts them in a sinkhole, making it hard to get out because Amazon can reduce prices by offering the same quality.

    The goals Amazon is achieving is very drastic to every firm in the United States. Not only would business individuals worry about taxes or other public fees but now worry about the entry barriers placed by lucrative companies disenabling smaller firms to function independently and not as a chain.

    Amazon is changing the traditional platform to start a business. They are making it difficult to start an independent firm and by outselling them. The only solution to compete is by having multiple stores and having some control of the production path for you to remain in control and not take a huge hit from Amazon. Even then, Amazon’s technology has been developing at a rapid pace recently and has been reducing costs and increasing profits dramatically.

    With such abundance of wealth, companies such as Amazon could offer positive externalities that governments cannot offer. One specifically is their investments in A.I. technology in the health care sector. They are trying to reduce costs in order to offer more accommodating prices and providing better quality health care to its workers. If their benefits are greater than the costs Amazon could offer something most government cannot, universal health care.

  15. Kunj Darji April 6, 2018 at 6:08 pm #

    Amazon is the ultimate demonstration of using business execution to destroy competitors.
    At the start of the consumer internet, Amazon was just one of many companies trying to sell stuff online (initially books only). It was not a novel idea. But Amazon just did it way better than anyone else. How did it reach its current level of world domination? Continual reinvestment of profits. No dividends for you, puny investor! Strong long-term management, in particular, CEO Jeff Bezos. Extreme focus on supply chain management. It has always looked at ways to automate its warehouses, squeezing out every last cent of costs and every second of time. This led it to significant early investments in robotics companies and an in-depth understanding of human involvement in manual work not seen since Henry Ford’s invention of the mass-production line. Just as important has been its human management – walking the fine line between achieving maximum efficiency and treating people as organic robots (i.e. slaves).
    So far, Amazon has killed off the local bookshop industry in many countries, and it is slowly strangling bricks-and-mortar retail. Even Wal-Mart now sees it as a real threat.
    The scary part is that it is just getting started. It turned its spare computing capacity into one of the leading cloud computing services. Now it is extending its logistics influence to try to displace couriers such as FedEx and UPS (the Amazon drones get a lot of publicity, but I’m not sure about the energy of that equation yet). The only retailer I can think of that is safe is Ikea. That is because Ikea provides family entertainment – a sort of Nordic Disneyland fantasy furniture theme park. Amazon is like a giant self-learning optimization machine, existing solely to achieve economy through scale by assimilating everything it touches. About the only thing that could threaten it in the long term is the much-hyped production revolution through 3D printing technology – which won’t happen for a little while yet.

  16. zhijie Yang April 6, 2018 at 6:21 pm #

    I think it’s an overly polemical article, “Flat-out terrifying company in the world”, “Amazon makes no sense”, “amazon’s invasion”. It’s hard to tell whether the author is trying to make a splash with Amazon or marvel at the company’s performance. If you don’t have a business theory base and an irrational person to read this article, you might have a bad feeling for Amazon. But in my opinion, this is a legendary company. Now, no one will doubt the greatness of the technology company named after the river, and no one will ignore the changes it brings to business, to social life, to technology. But in those days, the concept of the Internet was not in the minds of people, and online retailing was more like the Arabian nights, and Bezos’ vision and execution were particularly rare. This is an amazing phenomenon, and the American tech story is always about garages. Since its inception in 1995, Amazon has been the world’s top three tech giant for 23 years. During the tech bubble of 1999-2001, Amazon’s share price fell from $113 to $6, but that didn’t stop it from moving forward. Amazon, which focused on the long-term, released AWS in 2002 and officially launched in 2006, now accounts for 30% of the global market and is the world’s largest. Over a decade, about 1 million customers, 2 million servers, and 100, 000 new computer releases, with quarterly growth of more than 50 percent, generated revenues of $2.6 billion in the first quarter of 2016. In 2014, it launched the Echo box in the field of artificial intelligence technology, and its technology is not under Facebook and Google. Thus, Amazon’s success today is achieved by a little bit of effort and effort. It’s a classic example of what’s worth studying in the business world.
    Although it has become the third-largest market capitalization company in us, there is still a big gap between Amazon and Alphabet, the no. 2 parent of Google. Alphabet’s market value is $745.47 billion, according to the closing price on February 13, 2018. Apple is now the world’s most valuable listed company with a market capitalization of $849.24 billion. Although Amazon is capable, it is not as bad as it gets.
    Franklin Foer, the editor of New Republic magazine, saw Amazon as a monopoly. If zoom in his vision, he will see it to survive in such a giant of the world struggle: WalMart’s market value of more than $100 billion in Amazon, Alibaba, the world’s largest IPO. There is no monopoly in this world. Amazon’s monopoly in publishing is another matter. Mr. Foer says he controls 40% of the book market.

    However, if Amazon is a “tail monopoly”, then the word “monopoly” is meaningless. Even in industries such as gas, food, drinks and building materials, e-commerce is less than 10 percent of our retail. Amazon’s share is less than 20% of U.S. retail sales. Taken together, we are talking about a non-profitable company that controls less than 1 percent of the market.

  17. Justin Brenner April 6, 2018 at 6:54 pm #

    Amazon has grown into a business giant. What was once a simple online storefront known most for E-Books has since become a corporation that is constantly expanding into almost every known business possible. However, the company’s success has become a worry to others, as their success threatens others out of business. The article above even claims that any business amazon enters, everyone involved in that business is soon to go bankrupt because amazon is just that good at doing business. It’s CEO, Jeff Bezos, is now considered the richest man in America. Although despite this, working for amazon is supposedly horrible, with many workers lacking benefits. With all of this combined, the rapid expansion, the financial gain, the horrid working conditions, and the threat of running almost everyone out of business, it becomes clear from reading this that Amazon needs to be regulated by the government in some form. Year ago, during the times of Theodore Roosevelt, we saw this same kind of worry, with companies beginning to set up monopolies that were incredibly anti consumer. However, President Roosevelt, who would later gain the nickname of “Trust-Buster” set up many anti trust policies to prevent this from happening. We need to see a similar sentiment towards amazon, preventing them from expanding any further before they are the only ones left in the retail space. No one company should have a hold over business like amazon does. If one company has so much power, then it will eventually lead to anti-consumer behavior.

  18. Lucas Rodriguez April 6, 2018 at 7:55 pm #

    Over our most recent history, Amazon has become a worldwide sensation of an online shopping interface- offering numerous services that could contribute to this industry’s dominating omnipotence in the general market. Not only has it grown from its online database of purchasing simple technological products, but it has become a medium for companies to sell their items and services- whether it be food based, clothing based, or simple online rentals. As it shares a piece in almost every marketable industry, Amazon screams deal, while offering almost any product a consumer would be interested in. Although the bias toward the author’s stance on this seemingly inevitable Amazon outbreak is rather blatantly proffered, the article, let alone the title itself, makes a very critical point in terms of the competition for other firms and industries. As amazon starts to surface its services toward a wider and more itinerant means of shopping, more companies are facing sever danger in terms of their businesses. Why would an individual hesitate to go on a specifically orientated website for a particular service if it is offered on Amazon for a potentially cheaper price, with whom they have grown familiar with? Because of this, the Amazonian plague has started to spread and has affected several areas of business. In the near future we have a chance of experiencing a monopolistic factory-based institution; the fumes which will represent the harmful and controlling power amazon will hold within our societies, breaching the every movement and air in which we live our daily lives. But the reason for such an inescapable expansion is due to certain societal factors that Amazon has managed to influence, such as the expansion of factory and warehouse locations for their company as well as the benefits and open job opportunities that Amazon has from such an expansion. People actually want to work in these factories, because of the high pay, which could ultimately be seen through Amazon’s multi-billion dollar worth. Because of this, although an awareness from what many would deem as a complete outbreak of the company’s overflowing power in the many markets, the growth of such an industry may never cease to exist. As a former employee of one of the numerous Amazon warehouses, I could empirically announce that the services Amazon has provided its employees is something that would be difficult to overturn, in turn of employee loyalty. And similar to what the author had stated in terms of his stance of Amazon’s influence in our societies I similarly agree. This warehouse had expanded beyond though; the almost ten minute walk it would take for me to cross the facility was casually greeted by the seemingly infinite crates and boxes of material and products which the location supplied. From a range to regular electronics to food, the factory had literally every legal item that I could have imagined. And despite the hundreds of workers that would clock-in every morning before heading to their determined station (this is another reason why individuals like the Amazon workplace, because the jobs vary and are all equally qualified positions but may be preferred differently depending on the individual) all of the tasks are ones that could be easily replaceable in the future, which would call for an obvious initial loss in money due to the new technology (which should not be a major concern for Amazon’s CEO Jeff Benso) but in the long run a large increase in profit. They literally have individuals who by hand scan boxes using these archaic appearing devices, and due to the amount of people actually doing the task productivity is rather low. From this impending technological takeover amid Amazon’s wealthy budget, the general market for products will begin to vanish as Amazon’s forceful corporation-based weight will start to suffocate smaller industries only eliminating its competition.

  19. NF April 6, 2018 at 8:17 pm #

    The story of Amazon depicts America’s love for the underdog. Throughout history, Americans adored the individual that has surpassed all odds, and rose to the top. It’s to no surprise why Amazon is adored, supported, and applauded by so many individuals. In 2014, Amazon was at the bottom of the ranks. Many thought they were a complete failure. However, they changed their status within a year. Today, they are the leading franchise competing in all industries demolishing most competitors.

    Amazon’s success is one to be commended but the question lies is there is a such thing as being too successful? Due to Amazon’s large success in entering new industries, they have taken many competitors out of business. They’re constantly diving into new arenas, and more businesses are closing. Of course Amazon is permitted to execute any business behavior they feel suite, but I don’t believe it’s fair. I believe it’s greed, and being too greedy might lead to their demise. If not careful, many business owners, whom are a huge percentage of Amazon’s consumers, might petition Amazon due to their fleeting customers leaving Amazon at a huge lose. The possibilities are endless, in terms of what enraged competitors might do. I believe Amazon should take pride in their successes and restrain from entering fields that might put others at a lose.

  20. Mary Margaret Miller April 6, 2018 at 8:19 pm #

    Due to Amazon’s retail expansion, more and more companies are struggling to compete with this massive retailer. Is Amazon becoming too big? Being that Amazon has essentially become a monopoly, the US government is going to be putting legislations into place that will restrict Amazon from growing even larger. Currently, they are dominating the e-commerce market and are heavily impacting the business of both large retailers and mom and pop shops. Since Amazon is involved in multiple markets, companies such as Walmart are attempting to go up against the major retailer by changing their online store. Walmart has enacted this change by offering a greater range of products they do not sell in their stores, and by reaching out to other companies by offering to sell their products on Walmart’s online site. By contacting external vendors, Walmart has grown their online inventory immensely, but Amazon still remains at the top of the list for e-commerce. Walmart is nowhere near matching competition with Amazon, and even after purchasing Jet.com, which is another e-commerce site, Walmart is still unable to compete with the largest online retailer in the world.
    Walmart has however just proposed an idea of adding virtual reality to their online store. What their goal is, is to give consumers the opportunity to still shop online, but to also have that in-store experience some, but few consumers still enjoy. This idea is hoping to grow Walmart’s e-commerce business and to raise competition with Amazon. Since Amazon does not offer and cannot offer this type of experience to their shoppers, this will give Walmart somewhat of an advantage. Amazon, however, is attempting to institute convenient stores where consumers can just walk in, grab what they need and they will receive a direct bill of the items they purchased. This idea is plausible, however this involves Amazon entering another market that can damage companies such as Wawa and 7-11.
    Although their premise of their company is to make their products as conveniently accessible as possible, Amazon will never be capable of giving their consumers instant gratification that shoppers can receive if they go to a retailer directly. Back in 2014, the idea of the drone was introduced to deliver packages within hours or even minutes of ordering something. The idea seems interesting, however unpractical. Due to the high revenue this online store generates, the drones would cause a serious problem with air traffic and can become dangerous to society. Luckily, the government was able to shut the idea down and although it may be an interesting concept, it would only create a greater amount of issues. This monster of a monopoly needs to be tamed, and unfortunately lawmakers are the only ones who are capable of changing this.
    Sources:
    http://www.foxnews.com/tech/2018/02/06/walmart-prepares-for-vr-shopping-in-2020s.html

  21. Thomas Johnson April 6, 2018 at 8:29 pm #

    Jeff Bezos is one of the smartest people this world has ever seen and has taken Amazon to the top. What makes him such a smart person is his ability to find new markets and capitalize on them. First it was the online market its self with books then other items and now house hold items and groceciers all available for purchase online and right to your door. This leads to amazon taking a lot to other business out of business which makes other current businesses charge their business models. A market that they have recently captured in the household item market with coming out with Amazon purchase buttons that you can press to purchase an household item when you are running low on it. In today’s society we live in such a busy society so therefore this item was a huge hit that a lot of people took part it. Just another example of Jeff Bezos and opening up new markets.

  22. Timothy Guerrero April 6, 2018 at 8:36 pm #

    Amazon in many ways is the modern day Vanderbilt, Rockefeller, Morgan, etc. These men revolutionized the United States and the world in the 19th and 20th centuries, introducing railroads, energy, oil refinery, and more, and came to absolutely dominate their respective industries with little room for competition, and it is inarguable to state the Amazon has the ambitions of doing the same. We’ve discussed intensively in class that Amazon has reshaped its business initiatives with the intent to dominate, utilizing innovation, embodiment of new technologies, and sneaky capitalist ambitions to swift up emerging companies such as Ring or Whole Foods to gain a threshold in industries they previously had no prior involvement in. The danger behind this is just how powerful Amazon has become, both in an influential and technological aspect. Amazon essentially has the power to take on vital businessiness such as the USPS ape UPS with implication of drone delivery technology, and this further complicates our everhcnagjng economy admist this technological revolution. Make no mistake that Amazon Is ambitious – they’re I’m the business of profit, not setting the guidelines for moral and ethical accomplishments. How we regulate and control this ambition and ability to deliver on such innovation will be up to the American and global community, or we could deal with a big mess coming ip in our generations ahead.

  23. Connor Wiedeman April 6, 2018 at 8:46 pm #

    The enigma surrounding Amazons sheer size is something more people should call into question. Amazon has grown from an online book store to one of the world biggest companies. An important question that this article brings into focus is how Amazon is impacting small businesses that do not have the endless resources that Amazon possesses. Amazon has been increasing its influence on the American home by slowly but steadily entering new markets, and going toe to toe with leading companies. A few examples are Amazons release of the Echo, a device bought by millions and competing with major tech companies such as Google. Another big example is Amazons acquisition of high end grocery store Whole Foods. This shook up the grocery market and allows Amazon to push Whole Foods to an even more profitable business due to their sizable capital and brain power.
    While Amazon may be very good at what it does (expanding and conquering new markets), people have begun to call out its impact on the business struggling to survive in the age of Amazon. The article states that “As the share of online shopping continues to increase, Amazon seems likely to benefit the most. It’s responsible for roughly 44¢ of every dollar Americans spend online, and it’s now mixing in retail stores” which is an extraordinary statistic. This shows how in the world of online shopping, Amazon is the undisputed king. But it also means that eBay and other online shops are now irrelevant, or a side thought to the average consumer. While it is incorrect to blame consumers because Amazon is currently the best option for them. It is a one stop shop that can provide almost anything a consumer is looking for, and at a low price. Amazons entry into the delivery service is another big sign that Amazon is taking over. Their development of drone delivery has the potential to become the most efficient, and also the most cost efficient method of delivery. Amazon would not have to pay drivers, gas costs, truck repairs, accident costs, etc. but instead would only have to cover the electricity to charge the drones, which is minimal in comparison to gas, and repairs.

  24. Frank Mabalatan April 6, 2018 at 8:55 pm #

    Amazon credits most, if not all, of its success to Jeff Bezos’s vision and the business model of the site. It is of my opinion that Amazon is much more than a retail site, rather, it is also a real estate site and the property that it is offering is a spot in the internet marketplace. By extracting the need to own a property dedicated to selling product, Amazon cuts out a large part of a vendors expenses through this because the vendor no longer needs to pay for a lease, maintenance, and utilities. Even Amazon itself benefits from the internet marketplace because it has no need for stores.

    The internet’s influence in current day and of the days to come is one that cannot be circumvented. Commerce, communication, work, and education can all take place over the internet and to work against this movement is to work against the progression of humanity. Amazon understands this more than any other site and their success has led them to have an appetite for more revenue and overall influence in the world. Amazon, as a company, proficiently takes up space in any market, so much so until it becomes the mainstay of the whole market and leaves no better alternative. Amazon’s control of several markets allows them to be experimental and try innovative projects such as Amazon Go. On the horizon, I see antitrust legal issues for Amazon, but that may be in fear of its sheer dominance in the world of the internet. Success cannot be regulated or punished if it has not been borne out of unlawful or unethical practices and so far, Amazon hasn’t been blatantly either.

  25. Antonio Chirichiello April 6, 2018 at 9:10 pm #

    Amazon’s business strategy can frustrate and even perhaps worry corporate executives in any industry because, they have the ability to enter any market they deem fit or profitable. The capability to enter new markets makes the company Amazon a universal entity and a competitor to all businesses. I am not stating or assuming that the company will be successful in every industry but they have displayed over the decades the ability to succeed in a variety of markets. As they continue to grow by entering new markets will this become an issue in the future? Should we disregard the intensions their business plan has which is to become, a one stop shop business for all consumers?

    The markets that Amazon are currently in has done more than put fear and panic in business owner’s minds. The partnerships and mergers have also affected other company’s stock performance in the health care markets. The stock prices for the food, health, retail, shipping and distribution, auto, tech, and real estate industries all decreased substantially. This was all because of Amazon’s Amazon Web Services which interested shareholders and started making them view the company differently. It also diminished any doubt the stockholders previously had about the company’s future and their probability of success. Are we only going to react when Amazon tries to become a monopoly or violates any laws affecting or prohibiting commerce regarding other businesses?

    At the moment, they do not own enough of each industry to speculate a potential monopoly in the future. As they continue to enter more industries, the markets they currently have established business in will continue to collect more market share. Also, I believe that the success of Amazon Web Service played a vital role that placed them afar from their competition. Amazon Web Services allows the company to have a limitless reach and growth by targeting audiences they were not capable to do prior to the invention. This technology is capable of providing 90 different services which are available to any subscriber on the web. Their subscribers are anyone who needs service in computing, storage, networking and database which are only four of the 90 services available that they provide. The platform provides cloud computing to individuals, business and even the government are only few consumers who use their technology.

    In conclusion, I believe that the unpredictable strategy is Amazon’s key proponent to innovate regardless of the situation at bay. This also makes them a fierce competitor in any market as we all have witnessed their success is not bound to one field. Their target audience is not geared toward one specific: age group, sex orientation, or race. Amazon Web Service also enables them to capture market growth by providing cloud computing which can be an essential tool any person. The fact that Amazon continues to succeed in surpassing its competitors will have more than executives worried about market growth. Instead of controlling one industry and worrying about monopolizing it Jeff Bezos just enters new markets to increase amazon’s net worth. As he continues to test the waters in new industries what happens when the company continues to grow and becomes too large what then? Is that when we ask for the government to regulate them and break up this monopoly created across multiple industries? We must monitor the situation as it progresses over time.

  26. Aldona Brzek April 6, 2018 at 9:54 pm #

    It seems that the author of this article dislikes Amazon. Although many people seem to not understand how Amazon operates, it is also used by twice as many people. It is incredible to see that Amazon sells just about every single thing a person can need. They new even deliver groceries to your front door. Amazon has grown the most in the last few years and continues to as they find new ways to keep growing it. Amazon is a threat to almost every other company because they sell every single thing and often sell for less. Amazon will also ship items faster to your home than do other websites. For example, with Amazon prime a phone case will ship to your house significantly faster than if you order the phone case from the phone case company. Although Amazon is used by most people, I can see why it can be frustrating

    I agree with Luis that Amazon can be very frustrating for corporations since they are so unorthodox and try to sell a bit of every single thing. They really do compete with everyone and it is hard for competitors to beat them. I personally use Amazon very frequently. I think it is one of the best ways to online shop when you aren’t shopping for clothes. However, I feel like Amazon should just do something in which they specialize in rather than trying to do everything and sell every single thing a person could think of.

  27. Joe D April 6, 2018 at 10:04 pm #

    Amazon has disrupted the way the business world works in positive ways but also extremely negative ways. They revolutionized the way modern day trading and businesses function. The company once started as a book selling company that seemed to be plateauing and needed a new spark. CEO Jeff Bezos changed the business model into the megalith online retail store it is today. It’s compared to Walmart but you will never have to leave your house!

    Recently, Donald Trump has been recorded saying that Amazon negatively affects American businesses. It seems that it’s a matter of time before legislation passes limiting and restraining Amazon’s growth. Expanding to the pharmacy world, Amazon plans to partner with JPMorgan and Bekshire Hathaway plummeting stocks inside the industry by just announcing their initiative. It seems businesses cower in fear under Amazon’s immense and ever growing financial strength as they buy up every company they can get their hands on.

    The purchase of Whole Foods in 2017 has expanded Amazon’s “tentacles” further from their humble beginnings as a book distributor. Most recently, Toys”R”Us just filed for Chapter 11 due to non stop decrease in sales because of Amazon’s business. Amazon offers what they like to call “Fulfillment Centers” for businesses that allow Amazon warehouses to sell third party businesses products on their website. This makes up a large portion of Amazon’s profits but also negatively impacts every business that agrees to this partnership.

    Amazon will continue to eat up businesses and grow until it’s involved in every industry possible. This is capitalism at its greatest and although is not illegal it may be unethical. Stopping the growth of this business by legislation and government action could be seen as unconstitutional which creates even more convoluted problems. It will be interesting to watch Amazon’s actions over the next year and study the reactions they have on our business marketplace.

  28. Alyssa Heagy April 6, 2018 at 10:08 pm #

    In the article “Those jobs are gone forever. Let’s gear up for what’s next,” by Quincy Larson, he discusses that Amazon had a loss in value and then made a come back and now is becoming unstoppable. This is very true, Amazon is doing very well in the market. Especially in recent times they are on the rise. With Amazon Echo, they are becoming more successful than in the past with technology. Amazon’s Echo is doing so well because it is making life easier. It helps with listening to music, search things easier, tell the weather, interact when talked to, make purchases, and many other things. Amazon Echo became a great source of data for Amazon. It helped find out more information on the customers and their activity using the Echo.
    When Amazon purchased Whole Foods. This became huge for their industry. Whole Foods is a great addition to Amazon because this opens up more opportunity for them to enter into this market. I think if Amazon becomes very successful with Whole Foods it will starts becoming a problem for supermarket stores like Wegmans and maybe Walmart. Amazon is also implementing new technology into Whole food such as food order lockers. This creates easy use for people who order online and can pick up there food directly from the store. This purchase opens the doors to purchase groceries online and get them brought to your home. Amazon is moving up in value and I don’t think will stop at this rate.

  29. Natalia Falana April 6, 2018 at 10:43 pm #

    Amazon is a force to be reckoned with because it is not focused on an industry or project, but rather on what its customers want. The only problem is that Amazon customers want everything, and therefore the tech giant is quickly gaining ground in every industry from food to pharmaceuticals. The threat of Amazon is interesting because its domination is unavoidable and terrifying to companies, but exhilarating to customers.

    Amazon’s takeover is bizarre because it is in such a unique position. It can take chances other companies would find too risky and it revels in entering new markets and releasing new gadgets or apps. Other companies should be afraid of Amazon entering their market because unlike them, Amazon has the ability to fail and try again, and more than once this persistence has allowed the company to surpass other more established brands. As an Amazon customer, I like having different Amazon Prime perks like being able to read Prime books, and having two day free shipping. One of the reasons that Amazon is good for consumers is that it forces other companies to try harder to be competitive. Without Amazon many of the companies that now offer free shipping may not have changed their policies. Their intense focus on the customer helps other companies identify where they lag behind and if they cannot compete or change their business model quickly enough then their bottom line will suffer.

    Often, other companies’ products are not of lower quality or less desirable, but Amazon offers a kind of guarantee that other companies cannot. They guarantee good products, at competitive prices and they offer them quickly. If for any reason there is a problem with the product or the delivery, then one can count on their customer service representatives to quickly fix the problem. Other companies tend to be lacking in either customer service or another area. Ordering products through another company can feel like a small risk if its an unimportant matter, but there’s a reason that the government and companies trust Amazon to fulfill their orders.

  30. Alan Josefsek April 6, 2018 at 10:57 pm #

    Amazon is a threat to almost everyone who owns parts or a whole of a business. They sell almost anything you could think of, and the markets they have the potential to reach into are unending. Amazon’s creation of artificial intelligence is a new emerging threat to companies in all forms of business, and most corporations are soon going to adopt a “if you can’t beat them join them” policy with Amazon. One example of this actually happened today during the Pirates Pitch business competition. One of the business ideas that was mentioned was a company called Trenditure. Trenditure was designed to pair users with books regarding information behind trending topics on Twitter. The Chief Executive Officer of the company stated that she wanted to use an algorithm to determine trends on Twitter and match those trends with books on Amazon. Trenditure would receive a four to five percent retail profit depending on the type of book and the price to begin with. While the idea is a good one, Amazon’s artificial intelligence algorithms can easily identify these trends without taking any substantial amount of time or giving out a retail profit to a third party. In fact, one of the judges asked the CEO what she would do if Amazon did exactly that. She responded that she would copyright the code used in the proprietary algorithm, but this would 100% not hold up against AI. The ai does not need code to determine trends. Additionally, Google, FaceBook, and Amazon have search computing trackers that log and record the daily activity of the consumer market. This includes but is not limited to products such as books, music, devices, etc. Therefore, the idea developed by this student has no grounds to be considered proprietary when solving this current economic problem. Thus, we can conclude that this technology already exists amongst these large corporations such as Amazon. When asked about Amazon entering her market directly, she responded that she would attempt to sell the company. This is just one of many examples of how Amazon is disrupting many different industries throughout the globe.

  31. Koyinsola Okulaja April 7, 2018 at 3:54 pm #

    It is no secret the power of amazon. Not only do they only sell almost every product imaginable, they also offer many different services which is what allows it to continue to grow. The success of amazon came at the perfect time, when they first started, they were only selling books online. They used this market to grow their business and expanded into many other things. Today they have almost everything on the website. At my cousins University you can order something off the amazon warehouse in the morning and pick it up that same day. This just shows the growth and power that amazon has today. They have warehouses all around the United States the size of multiple football fields. They have also done a great job with their marketing, they have bought and merged with many different companies. The intelligence of Jeff Bezos is something that cannot be argued by many, he has done a great job in making sure the company is not effective but they also have good working conditions. I have multiple of my friends and family who have worked at both the warehouse and the office and they all speak very highly of the working conditions and the company. Amazon has faced many different challenges throughout its existence, but just like this article says the continue to not only bounce back but come back stronger than they were before. And now with the business of amazon growing with their new ideas like amazon go, amazon key and many other things they are proving to be a corporate nightmare for America. Amazon has its foot in almost every single door and they are refusing to settle which begs to ask the question, how much longer till they are satisfied with the size and the profits of the company. As a supply chain major, amazon is one of the companies that people dream of working at, they have one of the most effective supply chains, this is important because they keep track of millions of goods so its important to do a good job in making sure the proper goods are being moved and delivered. The question now with amazon is the one that is brought up at the end of the article, how much longer can they be this effective, with more and more threats coming for the company each day. I’m excited about what the future of amazon and cant wait to see what other things they do in the future.

  32. Daniel Schreier April 8, 2018 at 1:41 pm #

    It is no surprise that Amazon is aggressively trying to be present in all parts of the market, however, not only that, Amazon is trying to be the market, as it shows on this report: https://www.thenation.com/article/amazon-doesnt-just-want-to-dominate-the-market-it-wants-to-become-the-market/. As such, we should be very aware of what they are doing, because this can lead to a huge monopoly practice which can disrupt the market like never before.
    Today, half of all U.S. households are subscribed to the membership program Amazon Prime, half of all online shopping searches start directly on Amazon, and Amazon captures nearly one in every two dollars that Americans spend online. Amazon sells more books, toys, and by next year, apparel and consumer electronics than any retailer online or off, and is investing heavily in its grocery business. As a retailer, its market power now rivals or exceeds that of Walmart, and it stands only to grow: Within five years, one-fifth of the U.S.’s $3.6 trillion retail market will have shifted online, and Amazon is on track to capture two-thirds of that share. And the numbers grow with every new product and sales event. Amazon device sales were up more than two times over last year and sales of Echo products increased sevenfold on Cyber Monday over last year. In all, millions of Amazon-branded devices were sold this weekend, although the company doesn’t release specific numbers and did not respond to a request for comment. Some 5.1 million Amazon Echo devices have been sold since its introduction in late 2014, according to analysis by Consumer Intelligence Research Partners (CIRP). The group surveyed Amazon customer and released its report just one week before Black Friday, when millions more devices were sold-through to consumers. But Amazon is doing everything it can to change this. Echo and the Amazon family of products, including Kindle readers, are designed to get Echo owners to buy more goods. Amazon’s strategy has been to grow its Prime membership through exclusive offers and better pricing. The more consumers are drawn into the Amazon ecosystem, the more likely they are to exclusively use the company for pretty much everything they can.

  33. Zachary Corby April 10, 2018 at 1:58 pm #

    The case of Amazon as a company is particularly interesting, because they do not make a lot of money for their shareholders. Yet in today’s landscape they are seen as one of the big five companies that between all of them have a say in almost everything. Given how dominant they are today, it is hard to remember a lot of their failures, or a time when they were not doing so well. This article really gave me a lot of insight into their failures. I did not know that they had tried to make a smartphone that completely failed. The fire smartphone helped to produce record quarter losses because of how bad it tanked, and I honestly can not even remember hearing about that smartphone once. That is how forgettable it is. The very impressive yet at the same time concerning thing about Amazon is that it does not make a lot of profit. Despite being the 3rd most powerful company it ranked 426th in profit, which is impressive given its high stock price, but very concerning for investors. A company that valuable should be able to do a lot better profit wise. It also shows that Bezos and Amazon have a commitment to become more powerful instead of just making quick profits, which is extremely scary for other companies. Amazon is slowly taking over because of its idea to become the everything store. Realistically what could you not buy from Amazon today? It all started with books, electronics, and computing storage but it is now branching out to virtually everywhere. Supermarkets, healthcare, swimming pools, auto parts, and banking are some of the odd industries that Amazon is beginning to dip into. The acquisition of Whole Foods is really unsettling because it opens up a whole new realm of possibilities for Amazon. Given the technology that Amazon has it could revolutionize the supermarket that we know of today. Amazon has already began to put package delivery station inside their whole foods to help cut costs and become easily accessible for consumers. Amazon between their web service and prime has also proven that it can consistently make a profit. Even though its ranking is so low, they do have highly profitable services that they make their money on. Prime is particularly interesting because it is set up perfectly for Amazon to make a lot of money on. When people are ordering something using Prime they are ordering it from an Amazon store directly, or from a small/ independent business that then pays from the shipping and gives Amazon 15% of the price. So virtually they do not have to really do anything except provide their platform for consumer to order from.
    Amazon is a growing monopoly that really needs to be stopped, but it does not appear as if that will happen any time soon. Not only are they acquiring more assets, and dipping into different markets, but they have so much possible potential. They have only begun to scratch the surface of physical retail stores which are still alive and well. While they do make 44 cents on every American dollar spent online there is still tons of potential for that to continue growing. The article talks about the different thinks that Amazon has just begun to invest in such as licenses to operate ocean freight, leasing cargo planes etc. The ideas about the cashier less grocery store with a possible drive thru location where you can pick up groceries you ordered online are very innovative. It is ideas like these that can scare so many other companies because they could change the landscape of how business is done, and that is what makes Amazon so powerful.

  34. Antonio Macolino April 10, 2018 at 2:22 pm #

    What this article does is further prove what has been talked about for over a year now. Amazon is becoming an absolute juggernaut and people are starting to notice now. According to the article, Amazon has quintupled in size since 2014, and it is still growing. It is now the third most valuable company on Earth and its CEO, Jeff Bezos, is now the richest man on Earth. How was all of this possible? It is because Amazon found a way to make their services vital to everyday life and because of this, people could not help but use their services.
    One part of the article that I really liked was the part that described how companies now a days are being “Amazoned”. Basically, being “Amazoned” is when a company gets run out of business or at least loses a large amount of money and market share because Amazon enters their market. I think it is crazy that this a word now. That just shows the influence that Amazon has. It takes over industries and runs companies out of business with such efficiency, that it is simply just accepted now that that is what is supposed to happen. This poses a dangerous problem for the future of businesses in America. Pretty soon, Amazon will just do everything and will be the main business that everybody uses. Many retail businesses and industries such as clothing and entertainment will be destroyed by Amazon.
    A main reason why Amazon is so powerful is because of its cloud services and the fact that it was born online and all of its services are online. Because of the direction technology has headed, Amazon is the perfect company for consumers to purchase from. It is convenient, easy to use, and is practically a one stop shop for anything someone could possibly want to buy. Amazon is also growing its warehouse arsenal and is using drones to deliver packages to its customers. Now same day deliver is becoming more and more of a reality for many people and it also adds to the attractiveness of the company to many consumers. Because of this convenience aspect, Amazon has grown as large as it has and it will only continue to grow in the future.

  35. Nicholas DiBari April 11, 2018 at 1:26 pm #

    What struck me as very interesting in this article was its presentation of Amazon’s complete history. I always hear about the amazing successes the company has and the innovations it has brought to the market. This being said, I seldom hear about the times that Amazon has fallen short or failed to achieve what it set out to. For instance, I only have the vaguest memory of hearing about Amazon putting out a phone called the Fire. Neither did I know that Amazon’s investors lost faith in the company, dealing a massive blow to the soon to be giant. In my mind, these shortcomings are always overshadowed by the massive successes the company boasts such as Amazon Web Services (AWS) or the more recent Alexa technology. It was very interesting to hear about the darker spots in Amazon’s history as I have never seen a spotlight truly shined on them before.
    What further interested me was reading this article through the lens of anti-trust law, which we had just covered in class. Before really knowing the nuances of monopolies, I would have thought that, for sure, Amazon would be considered as such. After studying it in relation to mergers, acquisitions, and supply chaining. I believe I realize now how Bezos’ company escaped being considered a monopoly: it really is not reducing competition in the traditional sense. While Amazon has its hand in an immense number of markets, they are often not in and of themselves anti-competitive. If Amazon had, say, taken control over numerous supply chains in the book market, then I could understand why it would be labeled as a monopoly. This is not what is happening with Amazon, however. According to this article (https://money.howstuffworks.com/why-is-amazon-not-considered-monopoly.htm) another component of Amazon escaping the categorization of a monopoly is the fact that it does not harm the consumer, nor does it drive up prices. Furthermore, many businesses have a nuanced relationship with Amazon, described as “coopetition.” A multitude of companies are involved in selling their products through Amazon and, thus, helping them make money as opposed to stifling them. With all of this in mind, the line between cooperation and competition is blurred, but regardless, it is seemingly clear that monopoly is out of the conversation.

  36. Andrew Kuttin April 12, 2018 at 1:41 am #

    To say that Amazon’s outward expansion has caused corporate America a headache is an understatement. This article correctly identifies it as a nightmare. Until the US government brings serious anti-trust action against them, Amazon will continue to reach into new industries and send shivers through the executives currently occupying the space. The thing that is most interesting about all of Amazon’s expansions is that they have yet to take significant control of any one market. It can be argued that they are toeing a line in e-commerce delivery, but the industry is so broad it will be hard to define. As we discussed in class, Amazon took over Whole Foods, but the chain only makes up a fraction of the brick and mortar food store industry. Jeff Bezos took control of the Washington Post, but WaPo exists in the shadow of the New York Times. Jeff Bezos is extending his arms around the US economy as whole, but has yet to squeeze. From an anti-trust perspective, the ruling in United States vs Grinnell Corporation established precedent for classifying similar industries as one when bringing anti-trust claims. This provides a stretch for combining all of Amazon’s actions into a collective anti-trust suit, but the industries Bezos has entered are all different enough to avoid this precedent in its current understanding. Any lawyer will be hard pressed in combining food stores, newspapers, e-commerce delivery, healthcare, and the plethora of other Amazon touched industries as one.
    In Economics I was taught that monopolies are typically characterized by (among other things), an increase in prices and a decline in customer service/satisfaction. The other interesting and important part of Amazon’s expansion is that they have consistently improved in both categories. Amazon’s customer service and product quality is incredible. Before their two day shipping guarantee, it felt like products ordered online took an eternity to arrive. Included with a Prime membership is a subscription to a video streaming service with content that rivals that of Netflix. When I forgot to cancel my free trial of Amazon Prime before it expired, I called their customer service number and was given a full refund immediately without having to wait on hold or talk to a useless customer service representative. When Amazon bought Whole Foods, the first thing they did was cut prices across the board. I previously avoided the Whole Foods in my town because of prices, but ever since the acquisition, I have been no stranger. Amazon is taking over the world, but if things continue down the current path that may not be such a bad thing. In my own personal opinion, no matter the quality of service or prices, no company can be allowed to grow to a dangerous size. We saw in 2008 what happens if an industry becomes “too big to fail” and if Amazon reaches this point I think that it must be broken up by definition.

  37. Daniel Kim April 13, 2018 at 4:36 pm #

    Amazon is one of those companies that probably would have not been able to survive if it were a physical store. However, the internet provided Jeff Bezos the opportunity to grow his brainchild to the tech behemoth that we all know today. According to Bloomberg report, Amazon is an organization that is full of “contradictions.” On one hand, Amazon is a tech company that rivals Apple and Alphabet Inc. On the other hand, Amazon has warehouses all over the world (https://www.recode.net/2014/9/25/11631280/the-maps-that-show-amazons-plans-to-rule-the-world). As the world becomes smaller through technological advancements such as the Internet of Things and AI, Amazon is in the position to dominate the world. One of my biggest issues is that I find is what kind of company Amazon will become. We already see Amazon drones that are in the testing stages in places such as the United States, the United Kingdom, Austria, and other places around the world (https://www.amazon.com/Amazon-Prime-Air/b?ie=UTF8&node=8037720011). It seems that no industry is safe from Amazon’s ever-increasing reach. Food retail stores, department stores, clothing industries, and others are becoming worried that Amazon will make them obsolete. However, a recent Bloomberg report does not seem to be convinced that Amazon will be the top dog forever (https://www.bloomberg.com/graphics/2018-amazon-industry-displacement/?cmpid=socialflow-twitter-businessweek&utm_medium=social&utm_content=businessweek&utm_campaign=socialflow-organic&utm_source=twitter).
    After reading this article, I found it surprising to learn about the shortcomings that this company faced over the past years. The Fire smartphone was one of those major flops. The Amazon drones are already facing major legal issues (https://www.linkedin.com/pulse/amazon-drone-delivery-3-major-legal-problems-prime-jonathan/). From the technical side, Amazon engineers will have to figure out how their drones can accurately drop mail products. On our side, are we even willing to accept these drones to be part of our lives?
    These questions are and will probably prohibit Amazon drones from becoming a part of our reality anytime soon. Another point that the Bloomberg report makes is that Amazon has nowhere to hide anymore. In other words, Amazon may not be able to grow any further because it arguably reached to almost every industry. Who knew that an online bookstore would one day become the ultimate online store that dwarfs over small E-commerce stores? If becoming the biggest E-commerce store in the world is not enough, Jeff Bezos is also putting his foot in the space race. Although Bezos’s Blue Origin is similar to Musk’s SpaceX in many ways, Blue Origin has a different goal than that of SpaceX. Unlike SpaceX that focuses on launching payloads into orbits such as satellites and cargos, Blue Origin is simply ensuring that their rockets eventually reach orbital flights for space tourism. With that said, Jeff Bezos’s biggest store needs direction. What is the end goal? From my understanding, Jeff Bezos does not have an end goal in mind. Instead, his online store is a platform for furthering and exploring innovation (https://www.amazon.jobs/working/working-amazon). If this is the case, Amazon may have run out of new avenues to explore. Perhaps, in the near future, Amazon will plummet because it is too big.

  38. Nicholas Marinelli April 17, 2018 at 12:05 pm #

    The idea and business model of Amazon is simply one of the most genius, effective, and best things in business we will see for a long time. No other company is growing fast, no other company can “sell soap and make a soap opera”, no other company can amass such a following than Amazon. Bezos is definitely a “do-er” and brings that mentality to Amazon and their services to their members. Perks, free shipping, next hour delivery, innovation, new ideas, the list is endless when it comes to Amazon. What is even scarier- there is even more room to grow for Amazon. The retail and food space is open for takeover and now the nearly ventured and lucrative healthcare industry is up for grabs for the low-profit, low-inventory company. It just goes against traditional business plans- the largest company on the planet has no inventory, a low bottom line, and seemingly “scattered” business plan. But for Amazon, this works- and it is scary. If your company is “Amazoned”, you have lost; your small business is gone and everything you worked for is now behind an “Everything Must Go” sign. The idea of an online store is killing the retail and mom-and-pop industry; small businesses cannot stand a chance to the expanding online-retail giant.
    But can it ever be stopped and if so, how and when? Amazon is far from invulnerable- rather than competition, Amazon’s biggest rival is regulation. It is uncommon for a tech behemoth to be this large for this long, and it is possible that Amazon will eventually slip up. It is very possible that they might try to acquire a company and in turn, it raises red flags by the government, regulators, and lawmakers. Amazon and Bezos have recently come under fire by President Trump- an advocate for brick-and-mortar business in America. In a series of recent tweets, President Trump has said that Amazon needs to be on an even playing field with the rest of businesses; essentially he is blaming Bezos in a bold statement that because of Amazon’s powerful grip on society, he is causing tax-paying companies in the country to close its doors. He even alluded to the fact that Amazon is even hurting the USPS. It is interesting how the tight-lipped Bezos can fair to his largest rival- a regulating government.

  39. Lauren Woodward April 18, 2018 at 9:39 pm #

    The growth and development Amazon has had throughout the past few years is astronomical. They’ve turned into one of the largest companies that lead in competing within multiple markets on Earth. They’ve basically become a monopoly, and they can’t be regulated due to their unique situation and the inability for the government to control them. Not only does Amazon upset the American law system, it upsets other competitors as it is capturing most of the market in various categories. Amazon covers food, clothing, technology, and many more different areas of retail. The question this article shows is whether Amazon is becoming too big, and how it is affecting other businesses that are trying to compete with the popular business.
    There are numerous different areas that Amazon has found business in, thanks to its wide user base and ability to ship their products efficiently. As our class example has shown, it would be easier and more efficient for me to sell my flower water bottles on Amazon rather than on the main street in my hometown. Reason being is because Amazon has expertly mastered a key concept to their success: expanding their shipments of products and shipping in a cheap and efficient way.
    Amazon is one of my favorite companies to utilize, and although their business might not seem fair, its absolutely brilliant. The fact they are able to make profit in multiple markets while spending very little money compared to competitors makes them an incredible company; also they’re the first of their kind to establish the multi-market business. Seeing how the country will decide to deal with Amazon in the next coming years will be fairly interesting, considering we’ll be seeing major social changes with the implementation of Amazon Market, drones, and its partnership with WholeFoods. As I begin my journey through college, my use of Amazon will increase, based on my predictions. Therefore, I see no problem personally with Amazon. However, an antitrust issue is definitely at hand for the government, the real question is is how such a complex and new type of company like Amazon can be regulated in order to prevent a monopoly from continuing.

  40. Sebastien Jose Fortes April 20, 2018 at 8:59 pm #

    I agree with the opening paragraph. Amazon is terrifying. Any large company is. I have a feeling that maybe Amazon has too much power for one company. We’re talking about a company with a streaming service, a bookseller, and an online retail service.

    I think this article brings up a good point by mentioning that other big companies become verbs in the process of growing. I don’t doubt that being “Amazoned” would mean losing your small company to the big one.

    However, Amazon can’t just become more and more powerful without limit. It’s a well-known fact that monopolizing is illegal. The question is, when should Amazon be stopped?

    Amazon still has a long way to go—Netflix still dominates in streaming, Walmart is still a brick-and-mortar competitor, and iBooks is still in common use thanks to the popularity of Apple products.

    I doubt that Amazon can actually become too big. Amazon has a lot of power, but what it’s doing could be illegal in the future.

    Besides, this generation seems to be growing more aware when it comes to big companies. Facebook, for example, is on the decline. It may be because Generation Z is so fascinated by dystopian novels, and because different parts of the population oppose different political parties—we’ve grown to not trust everyone blindly.

    However, it’s clear that Amazon is still rising right now. The company is still profitable, so it’s not going anywhere anytime soon.

    One of the reasons Amazon comes off as “terrifying” to me is how so many different sellers rely on it. Look up some nice skirts and eventually you will encounter some sketchy Chinese sellers. It’s because of this that I think Amazon may need more quality control. Also, it may in part be this that keeps the company expanding. However, Amazon can’t just keep growing.

    On another note, I’m an advocate for the redistribution of wealth—not necessarily socialism, but definitely the encouragement of charity. I don’t think it’s fair that anyone has more money than they need (as in, hundreds of billions of dollars), especially if they earn it through business as opposed to labor. For this reason, and legal reasons, I don’t think Amazon should continue to grow in the way that it has been.

  41. Cara Eskilson May 24, 2018 at 9:09 pm #

    Amazon is truly one of the greatest business ideas in history. I am someone who grew up alongside Amazon, I remember as a young teen buying a kindle from Amazon and renting books for it. Since I grew up at the same time as Amazon was growing it was never abnormal for me to search whatever I wanted to buy, and have it delivered to my doorstep. This was before I was old enough to drive and before the popularity of Prime took off. As a young person, Amazon is just another store to me and it is so easy to forget how iconic the system actually is. Among my age group, we have had Amazon as long as we have been able to shop by ourselves. Amazon and online shopping as whole are not strange concepts to my age group and those younger than us. Many people in my age group tend to be perfectly comfortable uploading our credit or debit cards onto Amazon while many people older than me like my parents, are less trusting.

    I love how this article is able to encompass all that Amazon is. I am not at all surprised that Amazon holds the market for technology, books, and food. The fact that Amazon has at least attempted to enter every market never fails to amaze me. The resilience and ambition that this company and CEO Bezos has is a reason why they have been successful. As a college student, there are times that I am not able to get off campus due to my courses, homework, and job, but if I need anything from Post It Notes to snacks for my dorm I have the capability to go onto Amazon and order it. Amazon is unique in the fact that is a one stop shop full of great prices that can arrive within a two-day time period. It is becoming the monopoly of its kind since no other company can handle what Amazon is so successful at already achieving.

    If Amazon were to have a competitor in the future they would have a lot of catching up to do. Not only does Amazon hold several markets already but it keeps obtaining more companies growing its business and differentiating itself even more. They own cargo planes, trucks, and owns 150 warehouses! Not to mention they own Whole Foods Markets which will help them to continue to grow their revenue. It blew my mind when I read that out of every dollar spent by an American online, forty-four cents of it goes to Amazon. That means almost half of every dollar spent online goes to Amazon, while I am not shocked that a lot of the money spent online goes there but that it is a significant amount.

    Amazon is an online store which according to many of my business professors is paramount and is revolutionizing. In each of my business classes, I have heard professors rattle on about how Amazon is changing the way the world shops as they blame it for every failure of a physical stores across the United States. I can completely believe that it is more talked about than our president or taxes in a year by companies nationwide. Everyone is talking about Amazon and The Amazon Effect. Bezos and his idea of holding a Prime day which broadcast deals onto members screens was genius. The way Amazon’s Prime day is compared to Costco in the sense that people pay a company to spend more money and continue to find ways to capitalize on it. Amazon is a monster of a company and while it seems as though the market they are in is impenetrable, as the article stated, Amazon isn’t discreet about what market they are moving onto next.

  42. Y Moon June 1, 2018 at 8:56 am #

    Amazon has been around for 24 years but it was in the last 13 years that Amazon truly exploded into the business giant is it today. During the holidays there were more Amazon boxes on stoops and porches than any other company. Almost every single family has one person who has an Amazon Prime account, if not multiple family members. Amazon has become a retail staple in the e-commerce world for many Americans. By paying $100 a year, $50 for students with proof of enrollment, Prime members have the access to free two day shipping, to access to online streamed shows and movies and Prime Day (Amazon’s version of a Black Friday). The fast free delivery and the conveniency of shopping online has made Amazon the go to site for many gadgets, tools, clothes, etc. Amazon has even come up with a tool that can reorder a frequently used item with a click of a button. This kind of convenience allows users to stay at home, shop and order the items they need, and not waste time by driving to a store to shop for the same items.
    Present day, Amazon is no longer just a website. Amazon has opened up dozens of mall kiosks that sell Amazon branded gadgets, like the Kindle, and dozens of bookshops. Amazon had also opened up 30 outposts on or near college campuses that provide students with phone chargers, snacks, other items. Students can also pick up their Amazon packages from these outposts. These college campus outposts is an ingenious idea; many students rent or buy books from Amazon and many students buy toiletries and other items they need from Amazon due to the convenience of being delivered to their door. Because many students live in dormitories and getting packages from the mail office is not always the easiest task, having an outpost that carries all Amazon packages is an ingenious way for retaining student Prime account holders.
    Amazon had penetrated the retail industry with such great force that it is forcing many businesses to close down because they simply cannot compete with the online retail giant. Amazon is now entering the supermarket industry, letting its users order what they need online and delivering it to their front door. In New York City, they opened their first grocery store that allows customers to scan the items they need and then pay for it with their Amazon account; there is no need for cashiers which cuts down the time a customer spends in the store. The convenience of walking into a store and basically just leaving with the items due to online pay, can cut about 10-15 minutes from the trip. If saving 10-15 minutes is not enough, a consumer can just stay at home and have their groceries delivered to their front door. This kind of delivery service and fast grocery trips, can be a saving grace for many busy consumers, for example working parents with young children.
    Amazon is ever growing and it is slowly spreading to every industry available. Many small businesses cannot keep up with the prices and conveniency of Amazon, forcing them to close their doors. In the past year, many blamed Amazon for the closings of Toys R Us companies stating that the giant made it impossible for the beloved toy company to compete with their prices which ultimately led to their downfall. While Toys R Us had its own financial issues, one cannot help but to wonder if the expansion of Amazon helped expedite the shutdown by essentially taking away Toys R Us’ customers. Amazon continues to dip its fingers in many industries, now potentially looking into teaming up with a bank to offer U.S. businesses a credit card. While the vast expansion of Amazon is intriguing to watch, as the author states, I cannot help but wonder if Amazon is biting off more than they can chew. With the high risk of such fast and vast expansions, Amazon could potentially lose it all in its own ambitions.

  43. Maria Perdomo June 7, 2018 at 10:17 pm #

    The rate and scope that Amazon has grown and become is nothing short of awe-inspiring to the modern consumer and terrifying to other competing executives. Amazon can attribute its success to efficient and effective operations that please customers. The author, (Ovide) hinted at the fact that Amazon puts its customers first, even during holidays, when most retailers close their doors. I believe this orientation to be the main ingredient to their success as customer-satisfaction inspires customer-loyalty.
    Investors, in pushing Amazon’s stock value above $774bn, have shown great faith in the direction Amazon is headed. This is mainly because Amazon has consistently broken and overcome limitations that have previously threatened its reputation e.g. 2014 Fire-smartphone loss. To learn that Amazon grew from being an online book-retailer to both the online and physical retail-giant it is now, simply is hard to grasp, much less the fact that it still intends to grow more.
    As mentioned by (Ovide), in 2014, when Amazon faced its biggest failure with the “Fire-smartphone,” loss, Investors lost faith in the future of Amazon, consequently dropping its stock price by a worrying 20%. More shocking is the rise from that low point to become No.6 most valuable in the world in 2015, grossing on annual sales of $100bn. AWS has done much to also increase the success of Amazon services within and beyond American borders. Compared to other retailers, Amazon in its 24th year of operating is relatively young but it certainly cannot be underestimated in its capability to disrupt industries.

  44. Yash Wagle September 28, 2018 at 8:00 pm #

    To think a company that once branded themselves as simply a bookstore, became what we know now today is a trillion dollar company that just like the arrow on its logo indicates sells everything from a to z is nothing short of amazing. What was even more astonishing to me is just how quickly they raised in value. In the article it mentioned how in just 2014 the company had lost more than 20 percent of its value as investors due to disappointing sales and the creating the widely undesirable Amazon Fire smartphone. Yet just 5 years later things have changed drastically upwards for Amazon, as the article was written just about six months ago and was back then assessed at $774 billion Company which was a milestone as it passed Microsoft value, amazingly enough it is now worth $1 trillion passing Google-Alphabet Corp. This just goes further to show that company simply does show any signs to lessening growth. Just as the title indicate the reason why Amazon is so successful is that they are going above and beyond their e-commerce business and into other sectors.
    One of these others sectors that Amazon has went into is the cloud infrastructure market with Amazon Web Services (AWS) which allows the company to rent out computing horsepower to companies that need it. As the article explains Amazon actually rents out this software to other large companies such as Netflix. AWS has emerged as the market leader in cloud computing services and is actually the fifth biggest software company in the world. However the far reach of Amazon doesn’t just stop with AWS, but the company is also going into Hollywood creating its own shows/movies, with the creation of Amazon Alexa they have even created its own product type. Perhaps the most surprising moves by Amazon however are that they are going out of the technological industry and are going other industries and disrupting them. Recently by buying Wholefoods supermarket, going into drug distribution, health-care business. Amazon his putting its mark in the food, pharmaceutical, and health-care industry respectively. And as the data shows the other companies in these other industries are feeling the grasp of Amazon.
    As for me I am very pleased to see the ambition of Amazon and I wish to see how long their astronomical growth will last, as by getting themselves into several different industries they are only increasing their competition.

  45. Anthony Ciaralli October 5, 2018 at 2:11 pm #

    When looking at Amazon it is incredible to see how they adapt to changes. In 2014, Amazon created the Fire Smartphone. The Fire Smartphone was the worst consumer electronic they ever produced and they had record low revenue. Their stock price dropped by over twenty percent. The following year Amazon was able to bounce back and make profits. This just shows how versatile Amazon is and their importance in today’s market.

    It is amazing to see how much Amazon is growing. Amazon is currently getting involved in many different markets, expanding their business. They are doing business in service, movies, groceries, and many more. Amazon is able to have such a large and dominant portfolio because of their online presence. With the rise of technology, Amazon has been able to grow into an unstoppable force.

  46. Kent Flores November 16, 2018 at 11:50 pm #

    In the article “How Amazon’s Bottomless Appetite Became Corporate America’s Nightmare” by Shira Ovide, dives into the history of Amazon. The online shopping giant is the third most value company in the world as of 2018, only bested by Apple and Google. I learned that Amazon actually had a lose in profits back in 2014, which brought down its stock price by a whopping 20 percent, but yet 4 years later, its stock value is four times that of its value back in 2014. There were various reasons for this increase in stock value, but the most compelling fact that Shira presented, was that Amazon is ambitious. Amazon has taught me that ambition can take you far, because even when times are tough, those who are ambitious will prosper. Shira also interviewed “Management theorist Jim Collins who coined the term “flywheel” to describe a virtuous cycle that makes successful companies ever more successful. For Amazon, it took 20 years for the flywheel to kick in.” The term flywheel to me would be the time it takes for your ambition to finally lead you through failure and onto success. Even though Amazon has eliminated various business in the process of expanding, it has been able to raise the standard of living for all Americans. Amazon has created an empire that not only gives to the people what they want, but also has the power and money to take over any industry that it deems necessary for expansion. Just last year, Amazon bought out Whole Foods for 14 billion dollars and was able to expand its territory onto the food supply industry. If I had the money to invest into a stock, I would invest into Amazon, just because they do not seem to take failure as a sign to stop trying. Amazon is the type of company that will try and try again until it is able to finally get into an industry and dominate it. Even though there are plenty of red flags that can cause Amazon to fail, there are many more reasons that suggest that growth is a bigger probability in its favor.

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