Page 27 - July 2018 Disruption Report

AMAZON EATS EVERYTHING JANJULAYRY20210818
AMAZON EATS EVERYTHING How Amazon rules
Amazon is a “Goliath” in several sectors, including its Amazon Web Services (AWS)—the single- largest player with a 33% share of the cloud infrastructure market—and e-commerce. Amazon’s digital commerce—rooted in today’s mobile-first, on-demand world—is radically reshaping the world’s retail marketplace.
In 2018, Amazon projected sales of more than $258 billion for 2018, representing a 49.1% market share.
Amazon’s business is now comprised of five primary divisions—Amazon.com, Amazon Web Service (AWS), Alexa, Whole Foods and Amazon Prime, which focus on providing customers in the best and safest way possible. “Our customers are loyal to us right up until the second somebody offers them a better service,” said Amazon CEO Jeff Bezos. “And I love that. It’s super-motivating for us.”
Amazon’s market penetration via Amazon Prime now exceeds 100 million subscribers, who spend on average of $1,300 a year and have purchased more than 5 billion items to date, according to Bezos (in April).
Wolf Street’s Wolf Richter wrote:
Amazon has shaken up U.S. retail and is now totally dominant. It has the most formidable distribution system in the US. The “Amazon effect” has become
a common expression—Amazon buys an online pharmacy, and the shares
of CVS and Walgreens plunge. Everyone in retail is trembling when Amazon flares its nostrils...
Amazon is a book publisher. It’s encroaching on the turf of TV, Netflix,
and others with its video offerings. It has recently begun to invade online advertising with its Amazon Publisher Services “Unified Ad Marketplace”, and thereby it’s invading the market where Google and Facebook totally dominate. Its Alexa and other “smart” Internet-connected devices are populating homes and influencing all kinds of decisions that households make—not to speak of the data they send back. Amazon keeps expanding into new territories.
“The Prime membership moat that Bezos & Co. have built is gaining further steam in the field, and the Amazon ‘flywheel effect’ is further playing out globally among consumers,” wrote GBH Insights
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