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TECHNOLOGY Thursday 20 July 2017

Amazon isn’t technically dominant, but it pervades our lives

By ANICK JESDANUN gadgets like its tablets for things that evoke positive
AP Technology Writer little or no profit — but then feelings. So when they in-
NEW YORK (AP) — Ama- pushes people to buy digi- troduce something new,
zon is already a huge part tal movies they can watch it’s much easier for them
of many people’s lives. on the tablet. to overcome the barriers of
And its $13.7 billion deal for “Amazon’s strategy has al- entry because they have
the organic grocer Whole ways been a volume strat- this positive brand equity.”
Foods will likely bind its cus- egy, not a profit strategy,” DEMANDS ON SUPPLIERS
tomers even more tightly. said Lauren Beitelspacher, The ease of Amazon deliv-
“It kind of feels like they’re a marketing professor at eries may evoke goodwill
taking over so much com- Babson College in Massa- among consumers, but it
merce in our life,” said Erica chusetts. has hastened the decline
McGivern, a Whole Foods In a traditional sense, Ama- of several brick-and-mortar
and Amazon customer zon still faces lots of com- retailers — in particular,
who lives in Seattle, where petition. Walmart remains bookstore chains.
Amazon is headquartered. the leading retailer overall, In this Nov. 20, 2015, photo, packages being shipped in Amazon Amazon’s size also gives it
“It’s intimidating.” with more than three times boxes ride a conveyor belt at the UPS Worldport hub in Louisville, tremendous buying pow-
The acquisition could easily Amazon’s retail revenue. Ky. er. Just like Walmart and
hurt both Amazon’s existing Even with Whole Foods, Associated Press other big companies, Am-
rivals and future startups Amazon will have less than to shop while doing house- ists as Coldplay, Adele and azon can use that power
that might one day chal- 3 percent of the U.S. mar- hold chores. Bruno Mars. It’s a cinch to to wring low prices from
lenge it. Yet experts don’t ket share in groceries, ac- Amazon also offers dis- watch on an Amazon Fire suppliers of products and
believe U.S. antitrust regu- cording to Kantar Retail. counts for shoppers who TV device or listen on the services that Amazon sells.
lators will oppose the deal. Walmart is the leader, with sign up for regular delivery Echo. Add to that a new While Amazon can pass
That’s largely because it a 22 percent share last of frequently purchased feature resembling the so- those savings onto custom-
doesn’t create anything year. items. Free shipping with a cial network Pinterest. Cus- ers, analysts say smaller
resembling a traditional And while Amazon is the Prime membership makes tomers share their favorite suppliers might have to re-
monopoly. clear leader in e-com- it tempting to check Ama- designs, recipes, books duce quality or staff to cut
Instead, it merely extends merce, 90 percent of zon first, even if rivals also and other items. But where- costs. Some might even go
Amazon’s long quest to worldwide retail spending offer free shipping for larger as Pinterest users can buy out of business.
make shopping so conve- is still in brick-and-mortar orders. And of course, Am- what they like anywhere, On Monday, a union repre-
nient that consumers won’t stores, according to eMar- azon offers bonuses and Amazon Spark would di- senting food-industry work-
even think about stepping keter. cash back when using its rect customers to Ama- ers called on the Federal
away from its embrace. Rather than dominate in gift cards and credit cards. zon’s own store. “They are Trade Commission to scru-
The more successful that market share, Amazon Meanwhile, the Prime pervasive in the fun parts tinize Amazon’s deal for
strategy, the more Amazon dominates “in reaching membership offers not just of life, shopping and enter- Whole Foods, citing the im-
can monopolize the atten- into customers’ lives,” Gart- TV shows and movies but tainment,” Beitelspacher pact on suppliers, among
tion and shopping dollars ner retail analyst Robert also music from such art- said. “You have all these other things.q
of its customers — which, of Hetu said.
course, is perfectly legal. Amazon has gotten some
A QUESTION OF PRICE complaints that its most Facebook working on way to
Amazon is just one of sev- prominent results in shop- charge for reading news articles
eral major tech compa- ping searches aren’t al-
nies — such as Google and ways the cheapest. But for
Facebook — facing new many frequent customers NEW YORK (AP) — Face- tion capabilities. Facebook
scrutiny over their market — the more affluent ones book is working on a way confirmed Brown’s remarks,
power, which doesn’t map who tend to be members of for news organizations to which were reported by the
neatly onto traditional no- Amazon’s $99-a-year Prime charge readers for articles business website The Street.
tions of monopoly. loyalty program — Hetu they share and read on the In a separate statement,
When a company domi- said Amazon just needs to social network. Facebook’s Brown says Facebook is in
nates a market, it typically be more convenient. head of news partnerships, early talks with publishers
pushes up prices to boost BANKING ON LOYALTY Campbell Brown, says the on “how we might better
profits — something U.S. Convenience can come current plan is to require support subscription busi-
antitrust law is geared to in the form of Dash but- payments after reading 10 ness models.” Last week,
prevent. Amazon, how- tons, which put reorders articles from a publisher news publishers said they
ever, has a track record of baby wipes or coffee through Facebook. Brown are seeking permission from This Monday, June 19, 2017,
of keeping prices low and beans a finger-press away. said at a conference in Congress for the right to ne- photo shows Facebook
locking customers in to sell Voice-shopping capabili- New York Tuesday that gotiate jointly with Google launched on an iPhone, in
more stuff. For instance, ties in Alexa-enabled Echo news organizations have and Facebook on ads and North Andover, Mass.
the company typically sells speakers make it possible been calling for subscrip- other issues.q Associated Press