Is Amazon the new Google??
Amazon is Google's biggest customer, but it is also threatening Google in search -- 55% of people searching for a product start on Amazon while 28% use search engines like Google.
Amazon not just disrupted tradition retail (See the stock price growth below) but also is taking over digital advertising and search( Amazon's Advertising business grew 58% YoY in 2018 making it 3rd largest After Google and Facebook).
How did this shift happen? What did Amazon do differently that everyone else in the industry missed?
Jeff Bezos created the perfect storm for many industries one after another; it all started with retail. Bezos happened more to retail than retail happened to Jeff Bezos. In each of the preceding eras of retail, there were brilliant people who tapped into the shift in demographics or taste and created billions of dollars in value. But Bezos saw a technological shift, then used it to reconstruct root and branch the entire world of retailing.
E-commerce would be a shadow of itself, had Bezos not bought his vision and focus to the medium.
But no brand, no company, and no product are invincible.
Every once in a while, a new technology, an old problem, and a big idea turn into an innovation. Is there anything more Amazon can/should do to sustain what it has created? What is going to be Google's next move?
Credit: The Four by Scott Galloway
Product Leader | Digital Transformation | E-Commerce & Retail | Former Entrepreneur | Built for Scale & Innovation
5 年Few points : - Amazon is always aligned to its vision. They aim to build a system where anything on the planet could be sold. It's physical products today, won't be surprised if tomorrow it becomes a place for services+/ideas. - Google + FB contribute to 75‰ of digital advertising today, amazon is not too close - If amazon lands up in search engine business, won't it cannibalize it's own primary source of revenue stream! - Google keeps on changing search engine algorithm every 6 months or so. Can amazon afford this keeping it's own vision intact? - Right now, google has much better support from ecosystem point of view, can amazon build it? - Last but not the least, if we observe carefully there is no behavioral change of customers or users. It will be interesting to see how amazon can change it!
Co-Founder & CMO, Dogsee | Times 40U40
5 年Thank you everyone for liking and contributing.?
Senior Brand Manager
5 年Shailendra Sharma I wonder if you’d agree!
Chief Executive Officer | Dogsee Chew | Himalayan Natives | Khanal Foods
5 年Amazon indeed is new Google; I just feel that in the longer term Facebook may get an edge over both Google and Amazon for products as it gets to know people inside out.
Sr VP-II & Group Head institutional Business - PSU @ Axis Bank | Govt Business, Foreign Mission Banking, CXO incubator community
5 年For products it true!!