Amazon Has Positioned Itself Better than Apple, Meta, and Microsoft.
It's almost impossible to imagine a world without Amazon.
Some companies are smart, and some are geniuses. Amazon is one of those companies. You're probably hearing these days about Apple, Microsoft, and Nvidia competing for the top three spots in terms of the most valuable companies in the world.
That's mainly because of the hype around their products. Nvidia has a little bit of hype and a little bit of demand, and that's why investors are flocking to invest in it. But when it comes to businesses, Nvidia has been doing the same thing for a very long time. It has built a very strong infrastructure that people will depend on in the future.
Product Dependency
Microsoft and Apple did the same exact thing but let's put their main products on stage here. Microsoft Office, Windows, and all these products are embedded in a lot of educational institutions and government institutions. So it's not really easy for companies to just ditch them.
That makes Microsoft a perfect company in terms of how they integrated their software into people's lives. Apple has the same exact thing. People are buying and rebuying iPhones. This keeps going on and on.
Meta, on the other hand, has a different approach. They rely on social media and trust me when I say it's not really easy for anyone to get off of Instagram because all of their digital life is somewhat there.
They could get off of it, but if you look at Instagram statistics, it's almost very difficult for a person to just delete Instagram from their whole database and stop using it. If you heard of your friend doing that, you would think, "What? How did you do that? This is not normal."
So they changed the definition of normal. These are all ideas of how to build customer dependency, retention, and how to make people rely on your product. Which makes your company's lifetime, a big one.
The Ultimate Dependency
But there is no better example than one company out there that is embedded in everything we do. Not just that. It's almost impossible for us to rely on any other product.
For instance, you can always replace Meta with BeReal. That's why BeReal trended for a while because people thought, "Alright, this is the new Instagram." Similarly, TikTok was a threat to Instagram Reels.
Windows or Microsoft Office is being replaced on a daily basis. A lot of people are stopping the use of Microsoft PowerPoint and starting to use Canva, for example. Similarly, people are sometimes switching from iPhones to other devices like Android. So these markets are all interchangeable. A person could survive with a different product.
But when it comes to Amazon, they have every infrastructure that is needed that puts them in a dominant position that is extremely difficult to get off of. Can you imagine a company that could actually compete with Amazon on a global scale? There are a few companies here and there, but they can never reach what Amazon has reached in terms of customer dependency.
When you're shopping, you're thinking of Amazon, and shopping is an essential action of everyday life. It's not like social media. Social media is trying to be an essential thing in daily life, but it isn't. Similarly, using your iPhone isn't. They're forced into our lives.
Yet shopping is something we've been doing ever since we were born. We need to get things. We need to buy groceries. We need to buy new plants. Amazon changed the rules of buying. You don't need to buy; you need to Amazon. They have fulfillment centers all around the world. They grew on an unprecedented scale.
Amazon’s competitors are just looking to be sold to Amazon
In order for anyone to compete with them, they need a huge change in regulation in the country to prevent Amazon from growing. That's the only way you could do it because innovating and competing with Amazon is simply impossible.
You could create a new method of delivery. You could offer fast delivery to clients or to customers with your patented new drone technology. Let's assume that Amazon doesn't have that. Let's assume that you created new technology with lightning speed that arrives instantly at the customer’s house.
Now what about product stock? How are you going to get everything from around the world? Amazon has that covered and they have everything. You're just going to have to buy it from Amazon, which doesn't make any sense.
So they didn't only build customer dependency because all these companies built customer dependency. They built customer dependency in a niche that is the perfect niche.
That's why there are a lot of antitrust suits against Amazon to try to get it to back off or try to get it to not monopolize such a market, but there aren't any viable solutions to this matter. Amazon is here and it's going to continue to be here for at least 10 years in the future.
AI won’t change that. Blockchain won't change that. Cryptocurrency wouldn't change that. Nothing will change the fact that Amazon has all the shoes, clothes, and car equipment that you're going to need, which puts it in the perfect business position.