Saturday, March 21, 2020
Every Day is Prime Day Now
As Coronavirus shuts down most of the United States, Amazon's vertical integration with retail sales, Whole Foods, streaming video, AWS, and logistics has effectively made EVERY day Prime Day now.
What was once a yearly event to find any, and all, the products that you needed at special prices with fast shipping and backed by a brand you can trust, has become the de facto method of survival for thousands of households in America. Every day is now Prime Day.
Jeff Bezos left the hedge fund D. E. Shaw & Co. in 1994 to start Amazon as an online bookstore, three years later it went public. Over the next 25 years Amazon aggressively moved into retail sales, grocery sales, streaming video, internet infrastructure, and logistics. These "five pillars" have now formed the backbone of one of the most valuable, and essential, companies in history.
The coronavirus spread has laid bare the value of vertical integration in terms of a stable supply chain that can be accessed at any time, anywhere. Through thousands of incremental improvements over the past 25 years Amazon has harnessed the "new" technology of the internet to leverage the customer experience.
As its namesake implies, virtually anything can be purchased on Amazon now including vital food and beverage supplies online while Whole Foods adds a large physical footprint across the country. Not only can consumers purchase needed physical goods and supplies, Amazon also offers arguably the best video streaming platform. Prime Video allows viewers to select from thousands of educational to entertainment videos which are included in its membership, but also the ability to purchase or rent virtually any digital product ever produced. Finally, for those working from home AWS offers a compelling platform to build a business and work. Tying all of this together is one of the best logistics systems in the world.
Amazon's laser focus on being customer-centric has allowed it to leapfrog the competition in multiple industries, grabbing market share from staid businesses and transforming the retail landscape. Along the way it has built tremendous trust with the consumer allowing it to dovetail into seemingly disparate business lines like streaming video, food, and logistics which in hindsight all helped to cement the consumer experience into one where every day is now Prime Day.