Amazon doesn’t just compete – it disrupts

 In digital disruption

When Amazon wanted to enter the online shopping market, Amazon had the 3 ingredients it already needed:

1. The internet to connect consumers to their servers

2. A transportation system – Fedex/Postal services to deliver the goods

3. A payment system – Visa and Mastercard to facilitate payments

None of these Amazon had to pay for – they took advantage of these 3 ingredients being built and paid for by someone else.

They then set about perfecting ordering, warehousing and logistics – the undisputed leader.

Then they saw they had excess server capacity, so rented some of this to end users, disrupting the data centre model where you bought a server and rented space in a secure building.

With AWS you could dial up whatever you needed – with scale.

Amazon Prime – disrupting the model by locking in valuable customers with a $50+ membership fee in exchange for free delivery. Then giving them free movies via their own device .. disrupting again

Wholefoods – a genius move to start to compete head on with Walmart and other retailers.

Amazon Go – remove the friction in shopping in a store

Amazon Key – “in-home” delivery just launched. Amazon does not simply compete, it disrupts by developing a new category or market.

Who can catch them? 

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About 

Based in London, Practical Futurist and former Global Managing Partner at IBM, Andrew Grill is a popular and sought-after presenter and commentator on issues around digital disruption, workplace of the future and new technologies such as blockchain. Andrew is a multiple TEDx and International Keynote Speaker.