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A Case Study for Entrepreneurs on amazon

A Case Study for Entrepreneurs on amazon
How Amazon Dominated Retail – A Case Study for Entrepreneurs

A Case Study for Entrepreneurs

Hello, everybody Tom Ellsworth here and welcome to business idea blog in this week we’re taking a look at amazon because you asked for it many of you said how about a case study on Amazon and I looked at it there’s a lot of ways you could go into that but I thought that the best one was just to take a look at the essence of retail and the essence of retail for Amazon is dominance so we’re going to take a look at how are they dominating.

why are they dominating dive in a little bit because there are some lessons for you and me even as we enter into the waters of the digital retail ocean and maybe do something whether you’re selling t-shirts or doing something more substantial today two core points 

we’re watching history in retail we really are watching history and we need to appreciate what’s happening even if it kind of makes this a little worried about how big Amazon is getting there is something to watch and understand and actually appreciate the point

 number two digital sales for anybody is a three-front war and it’s not the army on the land and the Navy in the sea and the Air Force in the air it is search selection and delivery and we’re going to look at all three of those about Amazon is using those and dominating actually in each of the three areas to create an overwhelming market presence well we know Amazon’s been on a tear

if you open up the Wall Street Journal or any casual magazine you see that they’re doing something else or another big number associated with them okay let’s dive in and go from the general to the specific today Amazon’s worth three hundred and eighty-five billion dollars you know Facebook is worth three hundred and seventy billion dollars so you hear about social media and all the things that have happened and you hear headlines about retailers having issues that vanity and Amazon

they’ve actually grown to be bigger than Facebook in terms of their value on the stock market if we take a look at the playing field of retail I think it really helps us understand just how amazing this has been so we take a look here in 2006 this little list of retailers here was worth four hundred million dollars and there are people 

we remember like Sears pennies Macy’s Best Buy Target and Walmart pretty big if you take Walmart off list everybody else is only worth 186 so with Walmart 400 million dollars without Walmart 186 now looking to long ago is just exactly 10 years ago now we go to 2016 serious is worth almost nothing and by the way, black & decker just bought craftsman tools 

so when you think about Sears used to go there for Craftsman tools I did growing up because it was a great tool at a great price it was really sturdy stuff you know it wasn’t some bargain basement bin you might find inside of a Lowe’s or Home Depot next to the front door

you went to Sears to get Craftsman tools because they meant something well now Craftsman tools are now part of Black & Decker and serious is worth 1 point 1 billion dollars you know barely alive they probably have real estate that they owned it’s worth more than that you would have two pennies Nordstrom’s own Kohl’s down Macy’s under half best buy under half Target jump and Walmart 

they’re the only two that are holding on and Walmart’s kind of flat but if you now this list is only worth three hundred billion dollars and if you take Walmart out this list is worth eighty-six however what happened to Amazon that same point in time they were worth 17 billion dollars over here selling books doing things like that now they’re worth three hundred eighty-five billion dollars you know 

I haven’t said it in a while but there’s only one word for that damn you know I think if you take a look in retail and you see where it’s gone you say to yourself how did this happen well this didn’t happen because we decided we were going to buy online it didn’t happen because we wanted to buy a book there instead of going to Barnes & Noble you’re watching Crown books and Walden books and all those other places and borders go out of business

it’s more than just books it’s what they did with their bookstore engine and what they were learning about how you and I purchase if we step back a minute I’ve got some more charts today 

I want to talk about you know Black Friday used to be all about remember Black Friday used to all be all about let’s go shopping and there were sales at all these stores now Black Friday is it’s almost like pay-per-view wrestling get to tune in and watch which store in America had a riot because some low priced toy and caused
all these people to run in to get the one toy for two bucks and there’s big mob scene or they’re at Best Buy for that remember that five-dollar DVD player or that the $50 46 inch plasma display and all these people are in waiting by the doors

it’s not Black Friday it’s kind of like WWE meanwhile everybody is at home sitting there on their phone and on their tablet and on their PC buying from Amazon and getting it delivered you know so retail is dramatically changed you take a look at search it’s where it starts when we want to buy something online because…… 

The next part will be coming soon…😀 


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