The Anti-Amazon Alliance

In response to Amazon’s disruption potential. Silicon Valley and Shopify are motivated to form strategic alliance against Amazon… back in 2012.

E-Commerce — The New Retail Competitive Landscape

The rise of E-commerce has brought up by the change of consumer behaviour and technological advancement. It gives retailers cost advantage over spacial occupations and extends its promotion funnel from physical to online. It leads to double digital growth over the past 10 years.

Source: Unsplash

Amazon the Integrator

When the internet digitalizes what used to be analog assets, amazon wanted to aggregate these process together and occupy as much of the value chain as possible. With a vision to be “Earth’s most customer-centric company”. In early stage Amazon wanted to internalize operations from storage, payment, logistics and sales, and have developed a variety of strategy to growth its brand and investments.

  • Amazon adopted various marketing initiative, introducing Amazon influencer program and Prime membership to generate sustainable revenue and gain brand exposure from influencers.
  • Amazon developed its in-house distribution network from utilizing Fedex strategic partnership network to deliver products to shipping its own product to customers at a faster pace than any shipping company.
  1. Searches on Amazon get directed to Amazon/3rd-party merchant products
  2. Amazon handles payment (with trademark on its “Buy Now” button)
  3. Amazon facilitates storage, packaging and logistics
  4. The package gets delivered to door with an accurate tracker system

Shopify (Dropshipping)

Many have argued if Walmart is a direct competitor with Amazon. However, the closest company that’d you would have to complete on online traffic and customer experience will be Shopify. Shopify is the backbone of small E-commerce businesses and although Shopify does not sell anything on its website Shopify has converted 218 million sales with its online infrastructure outsourced to 3rd party merchants.

Source: Stratechery.com
Source: Google Blog

just articles about technology strategy