Amazon and their future

It's smiling at you spending your bonus on all that stuff you are trying so hard to convince yourself you need.

Amazon is used by millions of people all over the world (and parrots) to order the things they love. (That means stuff like watermelon for the parrots. Amazon's name is feared everywhere. People tend to speak about Amazon such that it is You-Know-Who from Harry Potter. The mere mention that Amazon could be looking to enter a market, is enough to drop the stock of major companies in that market. Amazon enters and disrupts entire markets, putting competitors out of business.

And that's only Amazon retail. Amazon Web Services hosts a huge amount of the web, and hundreds of consumer brands, you probably didn't know they owned. For example, Twitch, iMDB, Goodreads, Whole Foods etc.

As an example: Amazon trademarked the slogan, "We do the prep, you be the chef" was enough to drop Blue Apron (A company that delivers recipe ingredients and recipes) stock 12%. Obviously investors wet their pants just thinking that Amazon is going to enter their market.

Amazon has huge positives in its massive scalability, huge amounts of data, and an already reached inflection point of users, means it can launch any new product and it can be a huge success. Consumers, although fickle, are not picky about brands in generic products (for example USB wires, spoons etc.) and this is what allows AmazonBasics to thrive. Amazon can of course, study their own site, and outline all market segments that have high margins and high sales, and then quietly push AmazonBasics to the top of the search results bar (Obviously Amazon knows a thing or two about SEO on it's own website.) and take most of the sales. This doesn't mean Amazon doesn't care, heck it prides itself on being the most consumer centric company on Earth (I agree) and even takes losses just to make things cheaper. For example the $79 Kindle costs $78.59 to make in parts, (that's excluding retail, marketing, R&D etc.), which basically means Amazon is losing money on everyone of those Kindle's sold, but it doesn't really care about being profitable. There will be enough profits down the road for Amazon but it is going to monopolize retail and other stuff while it still can. Countless people have stated time and again that disruption isn't a viable business model.

Amazon is out to prove that repeated disruption IS a viable business model.

The reason behind Amazon's repetitive disruption is because with retail and other businesses, it has built up deep pockets, and long supply chains, which allows them to be efficient anywhere. (their philosophy of putting customer's first doesn't hurt either. Take Prime as an example, with 100 million subs, expected to reach 275 million in the next decade. For comparison, Netflix has 117 million. Of course Prime offers so much more than video streaming. Free delivery, offers, music streaming, reading etc. ) but that is Amazon's leverage here. Obviously it probably loses money with every Prime subscriber but it can profit when you decide to buy into every Amazon service available, buy groceries at only whole foods, and order stuff off Amazon without thinking. In India, where the average per capita income is a few times less than that of the United States, Netflix charges roughly the same price $7.99 in India, which is not viable at all. Amazon for comparision charges $12 PER YEAR. It goes without saying, that Prime is vastly more successful in India and the world.