3 ms·
Claiming that "there's no real rhyme or reason to amazon's strategy" doesn't seem right, since amazon is considered great at strategy(and yglesias is the wrong
by ippisl 14y ago
Claiming that "there's no real rhyme or reason to amazon's strategy" doesn't seem right, since amazon is considered great at strategy(and yglesias is the wrong guy to claim it, he's not a business expert and he's been criticized before about being out of his depth).
As i see it , their strategy is simple: identify the points along e-commerce where monopolies/quasi-monopolies can be formed and control them.
So they try to control the customer, the data, the warehouses, the marketing(the digital experience), the volume and now the financing.
My guess is, due to all those, e-commerce's end-game is a winner takes most market.
If they'll have monopoly powers, destroying everybody's profits(and everybody) wouldn't matter much. At that point amazon could increase prices and profits.