Everyone freely acknowledges that Amazon has changed how global retailers operate. In a video from Jim Tompkins, CEO and president of supply chain company Tompkins International, he addresses how Amazon is every company’s biggest competitor. “Every company’s competitor” seems like a big claim, but when we examine the breadth of Amazon’s offerings, it makes sense.
Remember, Amazon not only sells its own products online, it also acts a broker for others to sell their products through its Amazon Marketplace, taking a percentage with each transaction.
The scope of the company continues to grow as it acquires companies in pet care, health and beauty, clothing, books, crafts, entertainment, and more. And, when it comes to loyalty programs, Amazon Prime membership is the largest program of its kind.
Keep your eye on Amazon!
Group Activities and Discussion Questions:
- Discuss the changing structure of retail with online competitors.
- Ask students which companies they view as the guerillas in retail.
- Have students examine Amazon’s Web site and the various companies that it runs: www.amazon.com
- Show Tompkins’ video at http://youtu.be/oqff2HLJL9M
- What can companies do to compete with Amazon?
Source: Manufacturing Business Technology