Amazon is slowly eating the world of retail. The amount of pure power that Amazon has is a scary thought.
I'd say rapidly. And, it's really hard to see how they can be stopped. They're now capable disrupting any market they choose.
On the one hand, this can be a good thing, i.e Healthcare. On the other I feel like we're going to end up with something like Pixar's 'Buy-N-Large'
I know it's hard. But I was counting on Google Express being really really good in delivery and item availability. They partner with retailers in helping their products get more discovery and handle some logistics. I'd take 2 players competing vs one large player any day.
I ordered something from a department store down the street. It ended up getting shipped out of San Francisco, and took over a week to arrive. I could have ordered and returned something via Prime three times in the amount of time it took Google to send me something.
Plus, the selection is very limited. But that might just be my market.
Ehhh, I think you're really glossing over Amazon's failures here; they've tried to get into some markets and gotten pretty well demolished. If they've learned anything from those failures, it certainly isn't obvious.
They are certainly hit or miss on product design but their execution entering markets has been a high successful formula. Razor thin margins until the competition bleeds to death. I would like to understand examples of where they failed there?
I will also grant you that they do take a big of a 'see what sticks to the wall' approach to innovation. But do not mistake rapid iteration as a singular 'failure'
1) Mobile phones with the Fire phone - don't think this one requires any explanation.
2) Handmade goods with Amazon Handmade - Etsy's doing better than ever.
3) Travel with Destinations - don't think they've even tried to re-enter this market.
I'm sure I could find more, but we tend not to remember a company's failures (unless they're spectacular) as much as successes.
I don't think they can "be stopped" - at least not by competitors, as long as they maintain their overall strategy of expanding their marketshare by cutting margins below what their competitors can bear.
In my opinion, this is the way it should be. If a monopoly exists that is more efficient than a competitor can be, then it deserves to exist and its existence benefits consumers. On the other hand, if a monopoly becomes abusive then it will be destroyed very quickly by others who will be more than happy to undercut them.
Amazon (and all monopolies) will fail much more quickly than might be apparent at first glance if they abuse their position. "Bigger" does not always mean "stronger".
> Amazon (and all monopolies) will fail much more quickly than might be apparent at first glance if they abuse their position.
Are these universal truths, with no possible exceptions in the past of future?
> "Bigger" does not always mean "stronger".
Crossing the street without looking both directions does not always result in being injured or killed, but it often does.
[not specifically dog food]
If they don't solve it someone else will, and that someone else will destroy the perceived monopoly of Amazon. Alternatively Amazon will acquire them... in which case, Amazon will have solved it :)
Until some adulterated fake dog food kills your dog. Then it's your problem.
I don't think that monopolizing market is a good idea.. a healthy competition keeps the quality level of the products high.
They don't want to be and they're not really acting like it. Thus their store's quality is similar to or below that of ebay and far below that of directly chinese stores like Banggood or Ali Express.
That's a very good point. I don't see how they expect their costumers to believe in quality of their own products with this attitude.
I've been using Alibaba/Ali Express more often lately, and am finding that they are improving rapidly. For most products manufactured in Asia, they're significantly cheaper.
Quality is more consistent. It's not that everything there is better quality, but that you can more easily determine the level of quality you're willing to pay for and can be relatively confident what you're going to get.
Shipping time and (perceived) shipping cost are the big things that prevent Ali from growing rapidly in the US market. They're a few warehouses away from being a serious competitor to Amazon's retail business.