Why Amazon is eating the world | TechCrunch


84 bookmarks. First posted by michimaurer 8 days ago.


Why Amazon is eating the world | TechCrunch
from twitter
13 hours ago by lchin
This all said, I believe that Amazon is the most defensible company on earth, and we haven’t even begun to grasp the scale of its dominance over competitors. Amazon’s lead will only grow over the coming decade, and I don’t think there is much that any other retailer can do to stop it.

The reason isn’t the bullet-point moats that are talked about in headlines, and it isn’t the culture of innovation or Bezos’s vision as CEO (though I do think Amazon’s culture is incredible and Bezos is the most impressive CEO out there). It’s the fact that each piece of Amazon is being built with a service-oriented architecture, and Amazon is using that architecture to successively turn every single piece of the company into a separate platform — and thus opening each piece to outside competition.
Amazon  strategy  management  productise  AmazonWebServices  FulfillmentbyAmazon  advocacy  Techcrunch  2017 
4 days ago by inspiral

Amazon has replaced useless, time-intensive bureaucracy like internal surveys and audits with a feedback loop that generates cash when it works — and quickly identifies problems when it doesn’t.

They say that money earned is a reasonable approximation of the value you’re creating for the world, and Amazon has figured out a way to measure its own value in dozens of previously invisible areas.
amazon  aws  businessstrategy 
4 days ago by WimLeers
I co-founded a software startup in December. Each month, I send out an update to our investors to keep them updated on our progress. But the past month was a bit different — our industry (retail) is going through a transformation. via Pocket
IFTTT  Pocket  browser 
4 days ago by minifig
Why Amazon is eating the world via Instapaper http://ift.tt/2qHRdsc
IFTTT  Instapaper 
4 days ago by jonathan
Why Amazon is eating the world
from twitter
5 days ago by martinkelley
How Amazon is eliminating internal inefficiencies and avoiding technological stagnation by exposing its internal operations to external competition
5 days ago by joeo10
i have no way of evaluating the certainty of this piece but i found it interesting
from twitter_favs
5 days ago by penixtissue
With FBA, Amazon allows third-party sellers to ship bulk inventory to Amazon — Amazon stores this inventory (which the seller still owns) in Amazon’s fulfillment center, ships the product to the Amazon customer when the order is placed and even handles all of the returns and customer service. The rates are incredibly competitive. And FBA isn’t limited to items sold on Amazon — sellers also can use Amazon’s “multi-channel fulfillment” option to ship non-Amazon orders to the seller’s customers. An example of this would be if Hydro Flask operated their own separate e-commerce store on Shopify — when a customer places an order on the Shopify store, Hydro Flask can send the order to FBA (you guessed it — via an external API) and FBA will ship it directly to the customer.
amazon  ecommerce  retail  future  delivery 
5 days ago by dancall
RT : I've easily read 25+ articles about Amazon's approach to business. Most are repetitive crap. This one is fantastic:
from twitter
5 days ago by jimpick
Why Amazon is eating the world: I co-founded a software startup in December. Each month, I send out an update to our investors to keep them updated on our progress. But the past month was a bit different — our industry (retail) is going through a transformation. via Pocket, added at:May 17, 2017 at 06:35PM
IFTTT  Pocket 
6 days ago by LordEnzo
In the 10+ years since AWS’s debut, Amazon has been systematically rebuilding each of its internal tools as an externally consumable service. A recent example is AWS’s Amazon Connect — a self-service, cloud-based contact center platform that is based on the same technology used in Amazon’s own call centers. Again, the “extra revenue” here is great — but the real value is in honing Amazon’s internal tools.

If Amazon Connect is a complete commercial failure, Amazon’s management will have a quantifiable indicator (revenue, or lack thereof) that suggests their internal tools are significantly lagging behind the competition. Amazon has replaced useless, time-intensive bureaucracy like internal surveys and audits with a feedback loop that generates cash when it works — and quickly identifies problems when it doesn’t. They say that money earned is a reasonable approximation of the value you’re creating for the world, and Amazon has figured out a way to measure its own value in dozens of previously invisible areas.
amazon  supply_chain_management  innovation 
6 days ago by perich
RT : Must read. Management as API. Small pieces loosely joined =
$136 billion sales
from twitter
6 days ago by robsog
RT : Amazon's competitive advantage is in its operating model. It's a far scarier competitor than it looks on surface:
from twitter
6 days ago by sboots
AWS' QUOTE revenue bonanza is a footnote compared to the overlooked organizational insight that Amazon discovered: By carving out an operational piece of the company as a platform, they could future-proof the company against inefficiency and technological stagnation..... this strategy — in one of the most herculean displays of effort in the history of the modern corporation — has permeated Amazon at every level. Amazon has quietly rolled out external access in nooks and crannies across their entire ecosystem, and it is this long tail of external service availability that I think will be nearly impossible to replicate.
3PW  F531  QN 
6 days ago by lafgrp
If Amazon Connect is a complete commercial failure, Amazon’s management will have a quantifiable indicator (revenue, or lack thereof) that suggests their internal tools are significantly lagging behind the competition. Amazon has replaced useless, time-intensive bureaucracy like internal surveys and audits with a feedback loop that generates cash when it works — and quickly identifies problems when it doesn’t. They say that money earned is a reasonable approximation of the value you’re creating for the world, and Amazon has figured out a way to measure its own value in dozens of previously invisible areas.
business  amazon  BETC 
6 days ago by russelldavies
Amazon's competitive advantage is in its operating model. It's a far scarier competitor than it looks on surface:
from twitter_favs
6 days ago by hillary
Amazon’s fulfillment center, ships the product to the Amazon customer when the order is placed a
amazon  goodread 
7 days ago by Freiner
Amazon has replaced useless, time-intensive bureaucracy like internal surveys and audits with a feedback loop that generates cash when it works — and quickly identifies problems when it doesn’t. They say that money earned is a reasonable approximation of the value you’re creating for the world, and Amazon has figured out a way to measure its own value in dozens of previously invisible areas.
7 days ago by tinotopia
RT : Excellent unpacking of Amazon's winning ways
from twitter
7 days ago by peba
"Amazon is the most defensible company on earth, and we haven’t even begun to grasp the scale of its dominance"
from twitter
7 days ago by TaylorPearson
I co-founded a software startup in December. Each month, I send out an update to our investors to keep them updated on our progress. But the past month was a bit different — our industry (retail) is going through a transformation. via Pocket
IFTTT  Pocket 
7 days ago by archizoo
RT : Excellent unpacking of Amazon's winning ways
from twitter
7 days ago by jukkan
RT : Excellent unpacking of Amazon's winning ways
from twitter
7 days ago by mieky
I remember reading about the common pitfalls of vertically integrated companies when I was in school. While there are usually some compelling cost savings to be had from vertical integration (either through insourcing services or acquiring suppliers/customers), the increased margins typically evaporate over time as the “supplier” gets complacent with a captive, internal “customer.”

There are great examples of this in the automotive industry, where automakers have gone through alternating periods of supplier acquisitions and subsequent divestitures as component costs skyrocketed. Divisions get fat and inefficient without external competition. Attempts to mitigate this through competitive/external bid comparison, detailed cost accountings and quotas usually just lead to increased bureaucracy with little effect on actual cost structure.

The most obvious example of Amazon’s SOA structure is Amazon Web Services (Steve Yegge wrote a great rant about the beginnings of this back in 2011). Because of the timing of Amazon’s unparalleled scaling — hypergrowth in the early 2000s, before enterprise-class SaaS was widely available — Amazon had to build their own technology infrastructure. The financial genius of turning this infrastructure into an external product (AWS) has been well-covered — the windfalls have been enormous, to the tune of a $14 billion annual run rate. But the revenue bonanza is a footnote compared to the overlooked organizational insight that Amazon discovered: By carving out an operational piece of the company as a platform, they could future-proof the company against inefficiency and technological stagnation.
amazon  Strategy  via:ramitsethi 
8 days ago by eaconley
Amazon's greatest success is offering every piece of their operation as a publicly consumable service, so they all have to compete and get better.
amazon  business  techcrunch  via:HackerNews 
8 days ago by mcherm
Amazon has become uncatchable — and not only because of its vast economies of scale and scope. Less obviously, but even more importantly, it has an effective strategy to future-proof its operations against inefficiency and technological stagnation. Each piece of Amazon sells its services to third parties, so that any falling-off in competitiveness is exposed immediately. “Amazon will only be brought down by an anti-trust case or a paradigm shift in how we consume physical products”
brand_amazon  thefuture  retail  retail_futureof 
8 days ago by JohnDrake
"Amazon is the most impressive company on earth, and... one of the least understood":
from twitter_favs
8 days ago by michaeltri
"Amazon is the most impressive company on earth, and... one of the least understood":
from twitter_favs
8 days ago by vdm
I remember reading about the common pitfalls of vertically integrated companies when I was in school. While there are usually some compelling cost savings to be had from vertical integration (either through insourcing services or acquiring suppliers/customers), the increased margins typically evaporate over time as the “supplier” gets complacent with a captive, internal “customer.”

There are great examples of this in the automotive industry, where automakers have gone through alternating periods of supplier acquisitions and subsequent divestitures as component costs skyrocketed. Divisions get fat and inefficient without external competition. Attempts to mitigate this through competitive/external bid comparison, detailed cost accountings and quotas usually just lead to increased bureaucracy with little effect on actual cost structure.

The most obvious example of Amazon’s SOA structure is Amazon Web Services (Steve Yegge wrote a great rant about the beginnings of this back in 2011). Because of the timing of Amazon’s unparalleled scaling — hypergrowth in the early 2000s, before enterprise-class SaaS was widely available — Amazon had to build their own technology infrastructure. The financial genius of turning this infrastructure into an external product (AWS) has been well-covered — the windfalls have been enormous, to the tune of a $14 billion annual run rate. But the revenue bonanza is a footnote compared to the overlooked organizational insight that Amazon discovered: By carving out an operational piece of the company as a platform, they could future-proof the company against inefficiency and technological stagnation.
strategy 
8 days ago by ramitsethi
Why Amazon is eating the world
from twitter
8 days ago by redasadki
What happens when a company becomes the market
See also:
from twitter_favs
8 days ago by audrey
RT @zackkanter: For those interested in Amazon...TechCrunch published an analysis I wrote as part of our recent investor update.
amazon  business  article  competition 
8 days ago by raphman
atchable. It took Amazon 10 years to perfect FBA. Even if Walmart could do it in 5, where will Amazon be by the time they roll it out? And I haven’t even begun to touch the surface of Amazon’s lesser-known, industry-shattering programs like Seller Fulfilled Prime and Direct Fulfillment. I’m not sure we’ll see a mass-market retailer compete successfully against Amazon within my lifetime — though I still think there is a substantial opportunity for vertical-specific retailers like Chewy.com to spin up and gain some ground in the short term.

Amazon will only be brought down by an
8 days ago by akarpo