Amazon’s Expansion
The first brand that comes to my mind when talking about companies’ expansions beyond their original markets is Amazon. It started as an internet bookstore based in Seattle. Within a month, the fledgling retailer shipped books to all 50 U.S. states and to 45 countries. When Amazon launched on July 16, 1995 as a website that only sold books, founder Jeff Bezos had a vision for the company’s explosive growth and ecommerce domination [1]. With the pass of the time until recent months, the company has grown into a propulsive force across at least 5 major industries: retail, logistics, consumer technology, cloud computing, and most recently, media & entertainment. Today it is the largest online marketplace serving more countries worldwide than before. It has dedicated marketplaces for the United States, the United Kingdom, France, Ireland, Canada, Germany, Spain, Italy, Australia, Japan, China, India, Mexico, and among others. What started as a bookseller in July 1995 became a behemoth and one of the most valuable companies in the world today. Back in 2015, it surpassed Walmart as the most valuable retailer in the United States by market capitalization. In 2017, it acquired Whole Foods Market and in 2018, Bezos announced that its two-day delivery service, Amazon Prime, had surpassed 100 million subscribers worldwide. In addition, in November 2020, the company started an online delivery service dedicated to prescription drugs. The service provides discounts up to 80% for generic drugs and up to 40% for branded drugs for Prime subscribe users [2].
Like many of its large-cap tech peers, Amazon have faced a number of challenges these last years and months. First, keeping up E-commerce growth. Second, international performance. Some of Amazon’s lackluster earnings were accounted for by weak returns in Amazon’s international segments, which posted lighter-than-expected growth at 15% on a constant currency basis versus 21% the previous quarter. Third, it may be the undisputed leader in e-commerce, but formidable rivals could get more aggressive in their efforts to siphon market share from Amazon. Another factor is dealing with more intense government scrutiny. In terms of what they might have done better I would say that the company should have invested in areas like health care long time ago. However, with all the challenges the company have faced and the things they might have done I think they have accomplish a very well-done job with the company. After all, things are not perfect especially is this unpredictable and volatile world (in terms of business).
The company continues to grow by developing new products, acquisitions, and various different service offerings that continue to enlarge its customer base. Amazon has broadened its target market to try to cover as many customers’ needs as possible. As quoted in the text book, Marketing The Core: “If you have a real product with a distinctive point of difference that satisfies the needs of customers, you may have a winner”. Certainly, the company is doing a fantastic job, because there seems to be something for everyone on Amazon. As online shopping becomes increasingly popular, people turn to Amazon for just about everything, whether that’s everyday groceries or seasonal gifts [3].
References:
[1] https://www.businessinsider.com/jeff-bezos-amazon-history-facts-20174
