If Amazon Wants to Get Into Your Business, What’s Stopping It?
What Amazon has done is make things easier for the consumer, and used its cash flow and market cap to do it quickly. Is there a business it can’t get into and dominate?
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What Amazon has done is make things easier for the consumer, and used its cash flow and market cap to do it quickly. Is there a business it can't get into and dominate? It registered a patent for a meal-kit service and Blue Apron's stock dropped 11 percent. It bought Whole Foods to take over the grocery business. It has deals with the USPS that puts them competitively ahead of other distribution models. Jeff Bezos owns Washington Post. His company has videos and music, marking itself in the areas of entertainment and original programming.
If Amazon wants to get into your business, is anything stopping it? What could? Capitalism and being braver can.
So why aren't Fortune 500 companies competing against it? Walmart, the retailing giant, is buying Jet, showing it's not giving up, but what about other companies? What sets Amazon, Facebook, Apple and Microsoft apart from the leading growth companies of the 1940s, '50s, '60s is that General Motors, Ford, US Steel, Standard Oil, American Motors, Collins Radio didn't diversify their portfolios! They stayed at what they were good at and didn't think beyond their verticals.
So now is the time for companies that have tons of cash (Exxon, GE, etc.) to step up to the plate. It's time for them to spend some cash and buy competitors in different verticals and give entrepreneurial founders the cash flow and autonomy to compete against Amazon. In order for the small companies to grow (not sell out for countless millions (billions!) to Amazon), it's time for other giants to step up and challenge.
It's great that Google (Alphabet) is working on self-driving cars, but it can compete on a lot of other things beyond advertising against Google. It's terrific that AT&T is tackling media and cable, but why can't it use its largess (and user database of emails and names) to challenge Amazon in its own arena.
It's time for the old guard to take the fight to them. Believe in something the way Jeff Bezos believed in Amazon for ten plus years when Amazon was losing countless millions of dollars but kept going, and going and going. We need the stalwarts of this country to have the same beliefs and buy some of these companies that are outside of their wheelhouse to build a conglomerate that can challenge Amazon. It's good for capitalism, good for the country, good for the consumer, and good for business. It may take 3, 5, 10 years to build up that vertical, but look at what Amazon did!