4 of Amazon’s Biggest Growth Opportunities and How They Are Progressing
Something interesting has happened in the tech space over the last 5 years, and it is only becoming more and more pronounced in 2019: everyone is competing against Amazon.
Amazon is almost becoming the presumed “victor” in many industries because of their past success at gaining dominance in markets that are considered new to them. So now I’d like to go into some of Amazon’s biggest growth opportunities and how they have been progressing over the last few years.
Using Voice to Foster Dominance
Domination of the “voice” feature with the Amazon Echo is “the” major opportunity for the e-commerce arm of Amazon. It provides the most frictionless ordering experience and includes a ton of data that can be mined and utilized for future e-commerce initiatives.
Predicting Customer Needs
The ability to guess what you’d like to buy will build out directly from the voice feature we just talked about. Companies like TrunkClub have already delved into this space, but preemptive shipping is likely to come into play in the near future. Amazon has so much data on us that it should be able to predict ahead of time what we would want to order.
Scott Galloway refers to this as “zero click ordering”, which is a catchy way of saying that AI does all the work and we just decide what we want to keep once it arrives. Recent patent filings and some press releases by Amazon give a strong likelihood that this becomes a reality in the first half of 2019.
Going After Grocery
Right now, Walmart is covering a much greater territory than Amazon with their grocery offering in the US (84% of households can be reached rather than Amazon’s 18%). This is one competitive area where Amazon still has room to go.
Everyone expected the purchase of Whole Foods to be a gamechanger in the grocery space, but it has taken much longer than expected to get the growth and breadth necessary to dominate the space. Walmart may be competing now, but who’s to say where they will be 2 years from now.
AMG’s Rocketing Growth
Amazon Media Group is in a period of aggressive growth right now, and it is looking like it will only continue to accelerate in the coming years. They actually did $11 billion of revenue, which is more than Twitter, Snap and Instagram combined. This is somewhat of an insane statistic, and says a lot about where the tech world is moving. Right now, this e-commerce company is killing media companies left and right. There is mass consolidation right now and with mergers and acquisitions activity continuing to accelerate, this trend can be expected to continue.
The End Game
In terms of competition, Amazon has no competitor with the same level of reach across so many industries. But a new competitive feature has emerged as Google and Microsoft become more attractive partners for companies wishing to avoid being wiped out by Amazon.
An “us against them” dynamic will continue, and it is likely to intensify as Amazon’s growth and dominance accelerates. The real question is what happens when the economy turns and we are no longer in a clear skied economy.
Featured image courtesy of Shutterstock.