3 Things Blockchain Can Learn From Amazon, the Trillion Dollar Market Disruptor
Go Big or Go Home
No one takes a bite of the market like Amazon with its market-dominating business model. On top of that, few businesses can stomach being in the red for as many years as the trillion-dollar company, which reaped its first profit only after 8 years in the making — enough time to give its investors high anxiety.
Tumultuous ups and downs aside — ups being hitting a $1.8 billion net income in a single quarter and downs being losing nearly $1 billion in India — Amazon continues to helm a top seat as the second-highest valued company in the world. Behind its rapid global expansion and targeted service innovation — yes, Amazon is everything from a virtual and physical supermarket, a Usain Bolt-paced delivery guy and the tech whiz behind a talking AI bluetooth speaker, Alexa, now, what more can we ask for? — is a tenacious and expansive growth strategy that fellow disruptor, blockchain, with its similarities of innovation and novelty, can take pointers from.
Whether you’re an ambitious investor or a blockchain developer, here are 3 pro-tips on what Amazon is doing right and what blockchain can learn from it.
1. Embrace Short Term Losses
Amazon is no stranger to losing — not with a history of billion dollar losses. Few would hardly deem a company with such colossal losses a success story, but the e-commerce giant makes up for it by offsetting its losses with gargantuan gains in other areas.
On top of dominating the online shopping and shipping market, Amazon has also diversified into innovative consumer technologies like the AI-enabled Amazon Echo and Alexa, and likewise, gained competitive advantage in providing indispensable cloud computing services to big data firms. With so many branches of income, Amazon ensures that gains from its dominant fields offset the losses it makes as it ventures into new territories.
2. Provide Innovation that People Actually NEED
Blockchain’s biggest pro, novelty, is also its biggest con. When blockchain technology and its links to cryptocurrency took the world by storm, old and new businesses rushed to incorporate blockchain technology in order to attract buzzworthy interest — regardless whether the technology was needed or not. The Initial Coin Offering scene was booming with blockchain ideas — of which many of the non-feasible ones died out without even realising the product, leaving skeptics abound on blockchain’s actual utility.
Consumers don’t need a blockchain-based car-sharing app because existing ones work wonders even without blockchain. Welcome innovation would be something like a supermarket chain heightening food safety by tracking the supply chain of vegetables with blockchain technology — innovation that is catered to an unaddressed need and works. It’s not about the underlying technology, but whatever it is that works better.
3. Presence is Influence — Expand On and Offline
A revenue jump from 4 billion to 51 billion in 10 years — about an unbelievable 12 times increase — would not be imaginable without an incredibly far-sighted and expansive growth strategy.
Amazon is no longer just an online shopping juggernaut; it’s also ventured into worldwide shipping, physical cashier-less stores, AI and big data cloud computing, as well as acquiring a string of successful companies in close touch with the everyday consumer. Audible is one such acquisition — nothing beats Amazon’s subsidiary reading your e-book out to you over your morning coffee. With its branding plastered across multiple fields and counting, Amazon is in prime position to influence the world, coming in a close second to electronics giant Apple.
For blockchain to attain mainstream adoption, it must first expand its presence and influence. ICO marketing is but the tip of the iceberg; consumers are more likely to be convinced by a prototype product, collaborations with more established partners and most importantly, a product that addresses their needs better than anything else in the market.
The Future of Blockchain
Is blockchain a young Amazon in the making? With many parallels in terms of disruptive power, innovative capacities and vast scalability, blockchain’s possibilities for growth are seemingly endless — if harnessed skillfully. ICO gains and losses are just indicators of blockchain’s relevance in today’s world, but as Amazon proves, down times can last for years but also be rapidly and exponentially reversed with the right timing and conditions.
Blockchain believers, don’t let 2018’s Q4 lull get you down. Learn a thing or two from Amazon’s unpredictable rags to riches story (really, eight years) and keep going!