Company profile

Future of Amazon

#
Rank
44
| Quantumrun Global 1000

The company Amazon.com is ordinarily known as simply as Amazon. It is a US cloud computing and electronic commerce business entity that was established on July 5, 1994, by Jeff Bezos. It’s located in Seattle, Washington. It’s the biggest retailer in the internet world by market capitalization and total sales. It started out as an online bookstore, then, diversified to providing toys, apparel, jewelry, furniture, food, electronics, DVDs, CDs, Blu-rays, video games, software, audiobook downloads/streaming, MP3 downloads/streaming, and video downloads/streaming. It also develops and makes consumer electornics—notably, Echo, Kindle e-readers, Fire TV, and Fire tablets. Amazon is the biggest provider of cloud infrastructure services (IaaS and PaaS). It also sells low-end products like USB cables through AmazonBasic (in-house brand).

Home Country:
Sector:
Industry:
Internet Services and Retailing
Website:
Founded:
1994
Global employee count:
341400
Domestic employee count:
180000
Number of domestic locations:
89

Financial Health

Revenue:
$135987000000 USD
3y average revenue:
$110660333333 USD
Operating expenses:
$131801000000 USD
3y average expenses:
$108461333333 USD
Funds in reserve:
$15890000000 USD
Market country
Revenue from country
0.62

Asset Performance

  1. Product/Service/Dept. name
    Retail products
    Product/Service revenue
    91431000000
  2. Product/Service/Dept. name
    Third-party seller services
    Product/Service revenue
    22993000000
  3. Product/Service/Dept. name
    Subscription services
    Product/Service revenue
    6394000000

Innovation assets and Pipeline

Global brand rank:
4
Total patents held:
5418
Number of patents field last year:
48

All company data collected from its 2016 annual report and other public sources. The accuracy of this data and the conclusions derived from them depend on this publicly accessible data. If a data point listed above is discovered to be inaccurate, Quantumrun will make the necessary corrections to this live page. 

DISRUPTION VULNERABILITY

Belonging to the technology and retail sectors means this company will be affected directly and indirectly by a number of disruptive opportunities and challenges over the coming decades. While described in detail within Quantumrun’s special reports, these disruptive trends can be summarized along the following broad points:

*First off, internet penetration will grow from 50 percent in 2015 to over 80 percent by the late-2020s, allowing regions across Africa, South America, the Middle East and parts of Asia to experience their first Internet revolution. These regions will represent the biggest growth opportunities for tech and retail companies over the next two decades.
*Gen-Zs and Millennials are set to dominate the global population by the late-2020s. This tech-literate and tech-supporting demographic will fuel the greater adoption of online shopping.
*The shrinking cost and increasing computational capacity of artificial intelligence (AI) systems will lead to its greater use across a number of applications within the tech sector. All regimented or codified tasks and professions will see greater automation, leading to dramatically reduced operating costs and sizeable layoffs of white and blue-collar employees.
*Moore’s law will continue to advance the computational capacity and data storage of electronic hardware, while the virtualization of computation (thanks to the rise of the ‘cloud’) will continue to democratize computation applications for the masses. This will support the company's Amazon Web Services division.
*The shrinking cost and increasing functionality of advanced manufacturing robotics will lead to further automation of factory assembly lines, thereby improving manufacturing quality and costs associated with consumer products built by tech companies. Such factories will support Amazon's future growth of its private label brands.
*As the general population becomes ever more dependant on the offerings of tech companies, their influence will become a threat to governments who will seek to increasingly regulate them into submission. These legislative power plays will vary in their success depending on the size of the tech company targeted.
*Omnichannel is inevitable. Brick and mortar will merge completely by the mid-2020s to a point where a retailer’s physical and digital properties will complement each other’s sales.
*Pure e-commerce is dying. Starting with the clicks-to-bricks trend that emerged in the early 2010s, pure e-commerce retailers will find that they need to invest in physical locations to grow their revenue and market share within their respective niches.
*Physical retail is the future of branding. Future shoppers are looking to shop at physical retail stores that offer memorable, shareable, and easy to use (tech-enabled) shopping experiences.
*The marginal cost of producing physical goods will reach near zero by the late-2030s due to significant oncoming advancements in energy production, logistics, and automation. As a result, retailers will no longer be able to effectively outcompete each other on price alone. They will have to re-focus on brand—to sell ideas, more so than just products. This is because in this brave new world where anyone can practically buy anything, it’s no longer ownership that will separate the rich from the poor, it’s access. Access to exclusive brands and experiences. Access will become the new wealth of the future by the late 2030s.
*By the late 2030s, once physical goods become plentiful and cheap enough, they will be viewed more as a service than a luxury. And like music and film/television, all retail will become subscription-based businesses.
*RFID tags, a technology used to track physical goods remotely (and a technology that retailers have used since the 80s), will finally lose their cost and technology limitations. As a result, retailers will begin placing RFID tags on every individual item they have in stock, regardless of price. This is crucial because RFID tech, when coupled with the Internet of Things (IoT), is an enabling technology, enabling the enhanced inventory awareness that will result in a range of new retail technologies.

COMPANY’S FUTURE PROSPECTS

Company Headlines