Amazon is getting bigger and bigger: just a hint from Jeff Bezos is enough to bring down a whole market that his corporation is not breathing well. However, his genius can play a cruel joke with Amazon, writes Quartz.
Deep in the archives of Fortune magazine for 1999, there lives one of the most prophetic headlines of business journalism: "Amazon vs Everуbody".
After two decades, Quartz sneers, "all" really have few chances. According to analysts of Morgan Stanley, by the end of 2018, Amazon will cost a trillion dollars, and its market capitalization is already twice the value of Walmart and the GDP of countries such as South Africa, Thailand and Austria. With $ 100 billion Jeff Bezos costs more than 129 countries.
Despite the fact that Amazon has its advantages, its rapid growth is due solely to the philosophy of Bezos and customer loyalty.
As a result, the public adheres to the invariably positive view of Amazon - this is the only company whose transactions and acquisitions do not cause consumers to be unhappy. It is like an "evil empire", which no one hates. As "Leviathan", which the masses greet. Even the recent public relations scandal, connected with the difficult working conditions in the company and published in the NY Times, went almost unnoticed.
There is an impression that recently Bezos purchases are more connected with pride and desire to win, rather than an attempt to bring additional value to Amazon. For example, the registration of a trademark for the packaging of ready-made food, without any details, collapsed Blue Apron, specializing in this niche, by 19%. But why Amazon needed this miserable market, on which and so almost perfect competition with a minimum margin?
Although a possible shift in Amazon's public approval will not significantly affect the company's performance (we also use Facebook, although we do not trust this social network). However, he can wake up another larger beast - the US government, some members of which (as well as senators in the states) have long wanted to earn political points against IT corporations, like Google. Moreover, the expanding power of IT companies is the only thing that can unite US politicians and Donald Trump.
The balance is maintained due to the fact that Amazon hardly brings profit, taking care of the consumer experience of its customers. But it is worth it to go to the camp of "cynical corporations", as all love can disappear at once.