According to a report by Markets Insider, all forecasts point to online retail giant Amazon, which will surpass Alphabet, Microsoft and even Apple, becoming the first company to reach the market value of trillions of dollars. But are those predictions wrong? Amazon Can you do anything that other companies can't do?
As of June 4, 2018, Amazon's market capitalization reached 801.35 billion U.S. dollars, and its profitability has also grown by leaps and bounds. It seems that there are no obstacles that can stop this e-commerce giant from achieving its goal. Of course, unless it loses it all the time The trust of global consumers has been striving to get back.
The 12 members of the Forbes Technical Committee analyzed the current state of Amazon and discussed some factors that may prevent Amazon from becoming the first trillion-dollar market capitalization firm.
1. Transparency and integrity
There is a problem with Amazon: Some sellers sell counterfeit products or gray market products on its platform. Cheaper prices and free distribution are very attractive to consumers, but what social cost is it? The crisis social network giant Facebook is a lesson – transparency should be the top priority. – Wayne Lonstein of VFT Solutions
2. Public opinion and user data
There has been a lot of discussion about data in the tech industry recently. Companies like Facebook are being criticized by the public for their data policies. Amazon is involved in so many different industries, so its data collection is unthinkable. Considering the public is paying close attention Regarding personal data issues, Amazon will have to make a very sensible choice on how it uses those data. - Arthur Pereless, Pereless Systems, Inc.
3. Profitability
Amazon has great hopes to rise to a trillion dollar market value. Thanks to huge market share, revenue scale and various new technologies for e-commerce, cloud computing and electronic equipment business, its net capital value is constantly on the rise. The only thing that can stop Amazon from rising to trillion-dollar market value is its profitability, which is 255 times earnings, which is very high compared to Apple and Microsoft. - Naresh Soni of Tsunami ARVR
4. Government supervision
Amazon's high valuation is mainly supported by the expected growth in the future, including the entry into new industries and new business models. The company is very good at subverting the industry, even more powerful than Alphabet, Apple and Microsoft in this respect, so it is not hard to imagine This trend will continue. The only threat to Amazon's growth is government oversight. - Crystal Valentine, MapR Technologies, Inc.
5. User's trust
Amazon has changed the lives of mothers, science and technology departments and families. The company's products have infiltrated all aspects of the family and work life. The only thing that can stop them from continuing to grow is the loss of trust of users. In the maintenance of product reliability for users With regard to ease of use and maintaining the trust of users, Amazon has an extremely difficult task. If it does not pay attention to cultural values, its growth cannot be maintained. - Tom Roberto of Core Technology Solutions
6. Distribution costs and loss of Prime members
Amazon’s profit growth comes from its online services business, but it is also expanding its e-commerce business. With the company’s launch of more DTC-based private label products, it attracts more people to sign up for Prime membership services. May be faced with the problem of increasing delivery costs. The more people who use Prime to purchase low-margin products or non-owner brand products, the less profit each member brings. - InfoScout's Joshua Joshua Greenough
7. AWS data leakage
Most of Amazon's profits come from its cloud service AWS. If it is not cautious, data is stolen and leaked, it may be in great trouble. Alphabet and Microsoft have already begun to put more resources into their cloud services. So, if AWS Losing the trust of customers, they will start looking for alternatives. ——Vikram Joshi of pulsd
8. Excellent in-store experience, Better delivery service, VR/AR
If Amazon slows down, then it's a foreboding obstacle. The physical store partnered with small distribution service startups to match or even surpass Amazon's distribution experience, to master retail stores that create outstanding in-store experiences, or to Apple in augmented reality and virtual reality. Striving for great success. - Arnie Gordon of Scales
9. Site selection decision for the second headquarters
One potential event that would prevent Amazon from reaching its trillion-dollar market value forecast is that Amazon did not take the right approach when selecting a second headquarters location. The company’s second headquarters settlement means 5 billion in an area’s economy. With USD investment and 50,000 jobs, Amazon needs not only a city with enough skilled workers, but also proper support from the municipal government and cooperation with local start-up companies to continue on the road to success. Abdullah Snobar of Ryerson University Business Incubator DMZ
10. Wal-Mart Takes Market Share
Amazon’s huge spending on Whole Foods shows that it values the grocery market. However, one statistic I’ve read shows that about 90% of Americans live within 10 miles of Wal-Mart. If Wal-Mart can beat Amazon in terms of logistics and delivery time, it could become an online leader in grocery distribution and eventually extend its lead to other product categories. - Thomas Griffin of OptimMonster (Thomas Griffin)
11. Hardly anything can stop the Amazon
Nothing can stop Amazon. In terms of diversification of product services, competitors are completely unable to compare with the company. The only thing that may make Amazon troubled is regulation, but due to the diversification of business lines, Amazon has been protected to a certain degree. Another threat is the security/privacy issue, which is not a problem so far. In addition, I believe that market competition is unlikely to undermine the current development trajectory of Amazon. ——Je Grubbs of DevMynd
12. Apple
When I wrote this paragraph (May 13, 2018), Amazon’s market capitalization was US$770 billion. The market capitalization of Google’s parent company, Alphabet, is US$752 billion. Apple’s market value is US$943 billion. Who will win long-term? Victory, no one can tell. But I guess Apple will be the first to break the trillion-dollar market value. The other companies are still far away from the end. - Ben Lee of Rootstrap