Book Market Control
Amazon's success in the book market began in 1995. That year Jeff Bezos started selling books for the first time via the internet, which was a very fancy business plan. Very quickly this online business went from national to international. By 1998, Jeff Bezos had expanded his business to the United Kingdom and Germany. According to a 2016 statistic, Amazon is the seller of 75% of the books sold online. The company also sells 75% of e-books and more than 40% of new books. Amazon itself publishes books, of which about 85% are sellers. The service is reaching customers through at least 11 websites. Consumers are also taking various steps to get used to Amazon or to avoid using other websites. In August 2002, the company started offering 'Super Savings Shipping Offers' to attract buyers. Shipping charges range from 100 to just 25. Free delivery is also offered to those who purchase $35 or more. Another fancy way to attract consumers is to launch 'Prime Service' in 2005. Those who pay an annual fee for this service get two days free service.
Food Market Control
Amazon is now about to start controlling the food market as well. However, the task will not be easy. Because in this race, Amazon has competed with Walmart, Kroger, Costco, Target, etc. In 2017, Amazon bought the US Whole Foods Market for $13.6 billion to begin the process of dominating the US food market. It is the sixth largest grocery store in America. The rationale behind this purchase is that there are few Americans who order food for their daily needs on online. Usually, they like to go out on their own, especially on holidays and buy the necessary food from the super shop. So, Amazon was able to predict that this business would be more profitable offline than online. Currently, Amazon and Whole Foods Market together control 4 percent of the US food market. Amazon wants to control the food market like any other sector in the distant future.
Dominance in other markets
In 2009, the largest online shoe store bought Japs, in 2010 the largest online diaper store, Diaper.com, and in 2014, the largest online comics store, Comicsology. About 30 percent of all US retail sales from Amazon. The company also bought live streaming platform Twitch.com. On top of all this is ‘Amazon Web Services’. The $12 billion wroth business rent their servers, bandwidth and computing power to other established companies such as Slack, Netflix, Dropbox, Tumblr and Pinterest. Even governments use Amazon web services. When so many powerful companies rely on this service, it is easy to understand that Amazon is gaining power from this along with huge revenue. Directly or indirectly, these companies have to rely on Amazon to provide services to consumers.
It is customary for successful American companies to transform themselves into corporations in order to expand their markets; there are plenty of examples, Pepsi, Cocalola, Google, Facebook. In the end they all become monopolies, especially when they open their offices abroad and end up dominating the markets of third world countries. @tipu curate 2
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It is incredible to see the growth of Amazon, and it is almost a bit scary. It is also scary to see that the big giants are making it so hard for small businesses to thrive, simply because the bigger can sell more and lower prices and still win, while the smaller businesses have to set prices higher, in order to survive with their sales. It is a tough world, and Amazon is at a very good place now.
Will it stop? I doubt it, but I absolutely see the importance of healthy competition from other companies!!
When you reach the top, you are going to decline eventually.
It's just amazing how amazon grow up until it controls many sectors now. I don't think they reached the peak yet as I still believe they can find more and more ways to grow since days are passing and new things coming out, that's if they don't make something phenomenal.