IBS INDIVIDUAL ASSIGNMENT

TOPIC : AMAZON IN 2027

Submitted by: ABHISHEK ACHARJEE

Roll No : 4A

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AMAZON IN 2027
Amazon of today is greatly different from what it was when it started as a small Internet Bookstore
in 1995. Through various strategic and management innovations it has become a global
phenomenon, spanning home delivery, cloud computing, advances in artificial intelligence, and the
streaming of movies and sports. It has launched innovations that have completely disrupted the
retail industry and with its expertise in complex supply chain logistics and competitive advantage in
data collection, Amazon is attacking a whole host of new industries. While it is currently one of the
top companies in the current global environment, Amazon has always strived towards improving
itself to reach even higher grounds. Amazon can further disrupt more industries and slowly become
a meta-organization .Through this article, we look at some of the ways we believe Amazon will
upgrade itself in the next 5 years.

New industries that Amazon will Disrupt:

1.Payments Industry: Amazon has been building out a presence in the payments space for years,
with products including:

Amazon Pay, Amazon Cash, Amazon reload, Amazon Go, Amazon Fresh, Amazon One .All these
products provide different benefits to the consumers and solving a wide range of pain points for
them, thus creating an ecosystem for payments. The logic behind creating such an ecosystem is that-
if more people spend put their money in Amazon owned account, more likely they are to spend with
Amazon.

By 2025, it is expected that 60% of the global population will use wallets, and with competition like
Apple Pay and Google Pay, if Amazon can find a way to make its own payments options stickier,
easier for consumers to use, and cheaper for merchants to accept, it could find huge opportunities in
this industry.

Amazon is approaching payments from the viewpoints of the consumer and the merchant, who both
require an incentive to use Amazon Pay rather than competing services. Amazon is approaching
payments from the viewpoints of the consumer and the merchant, who both require an incentive to
use Amazon Pay rather than competing services.

Amazon’s push in payments space is largely

concentrated in India. It has made many
strategic decisions to get a stronghold in the
Indian market which can help it become the
major player in the Payments Industry in India
and slowly expand its presence in other
markets. And by

2. Online Groceries: Today, one of the biggest prospects in retail is online grocery shopping. Since
the Covid-19 pandemic promotes new users to attempt online food delivery to minimise in-person
exposure, many people have embraced online grocery shopping. Today, one of the biggest prospects
in retail is online grocery shopping. Since the Covid-19 pandemic promotes new users to attempt
online food delivery to minimise in-person exposure, many people have embraced online grocery
shopping. While Amazon faces a lot of competition, they have a distinct advantage of having Data
Analytics Competency, which would enable them to predict customer trends better and bring out
items that are required by the customer.

3. Small business lending: A direct, data-driven source of financing is what Amazon is providing to
the merchants and it has a wide range of benefits over the traditional sources of credit. This loan
process is automated and is lot faster than traditional sources. Additionally, it makes it simpler for
small businesses to acquire finance because to its streamlined application process, which is based on
extracting information from a merchant's Amazon account. Amazon also has the eexclusivityfactor in
it which means it can only be availed through referrals, The advantage of this exclusivity is that
Amazon can offer loans quickly. Amazon already has huge amounts of data on the merchants that
use its platform — and subsequently doesn’t need the kind of extensive documentation required by
many commercial banks.

By 2027, expect Amazon to emerge as the leaders in small business lending, as many of the
merchants would also be listing their products on Amazon’s marketplace.

4. Pharmacies: The direct-to-consumer model of Amazon can be greatly useful to the pharma
industry, as it provides greater convenience and customer experience. Also, Amazon’s healthcare
partnerships could provide a large web of beta testers for new healthcare products. Also, Covid 19
has made fast and efficient delivery of medicines an essential part of any pharmacy. Thus, Amazon
with its vast experience in supply chain logistics can greatly succeed over the traditional players.

Down the road, Amazon may further leverage its tech to expand its
healthcare presence. Amazon can use its voice assistant Alexa for
medicinal purposes to check on patients for their medicines. By 2027,
these capabilities could lead to Amazon getting into the diagnosis, drug
recommendation, and even the prescription side of pharmaceuticals —
though that future is likely some way off. As a result, the traditional brick
and mortar pharmacies may cease to exist.

5. Fulfillment & delivery: Amazon is looking to use the AWS model to create a new business line of
fulfillment and delivery. Amazon wants to redefine what customers can expect from delivery
services, including resolving current pain points. The company's main objective is to automate the
distribution process in order to make it quicker, more effective, and more predictable.

Amazon is expanding its logistics infrastructure through a variety of different in-house initiatives. It is
currently planning to use 350,000 robots across its warehousing network, using robotic fulfillment to
increase the speed and accuracy of getting online orders filled and ready to ship. Also, it has already
a well-skilled network of human resources who can handle complex logistics problems very
efficiently. Thus it is using its Digital-Human Assets to gain a competitive advantage in this aspect.

With such steps, Amazon can become a leader in logistics which can mean it gains more users for
Amazon thus enhancing the ecosystem.

Other Industries Amazon can target: While in the previous industries, it is predicted that Amazon
will cause a disruption, there are some other industries in which Amazon can also expand and
attempt to cause formidable challenge to the existing players:
1.Insurance: Amazon already has acquired India based Insurance company “Acko”, which offers car
and bike loans, also Amazon has collaborated with top insurers like Geico and Allstate to develop
Alexa skills for home and vehicle insurance that inform current and potential consumers about
policies and provide quotations. And with its large number of merchants in app, it can also extend
their insurance services to them.

2. Smart Home Solutions : Amazon will also look to connect the entire house through smart
solutions, with using its features like Alexa, Echo and incorporating them with other innovations to
sell security solutions.

3. Gaming Industry: Amazon can gain stronghold in this industry by using both internal and external
platforms, it has its platform “Luna” for online gaming, which uses Luna controllers, also it has
purchased Twitch which can also increase the traffic for their in house gaming services

Entering New Markets

Amazon Global Selling gives access to sell in 19 international marketplaces, while it ships to over 100
countries worldwide through its AmazonGlobal shipping program. But in the next 5 years, we can
expect Amazon to enter many new international markets such as:

South Korea: It is one of the most lucrative markets for cosmetics and electronics and is clearly a
market Amazon will enter in the next 5 years, and with the increasing influence of Korean
entertainment ( Kpop, Kdrama) globally, expect Amazon prime Video to spread in this region.

Russia: Russia is set to rise in global importance in coming years due to its strategic importance as a
source of oil and gas, with increasing demand for goods and services across the vast country,
Amazon can serve as a suitable partner to meet the logistics challenges.

South Africa: Africa as a whole is developing ata great rate, and soon enough there will be great
demand for products and services there. Amazon can look to fulfil these demands and South Africa
can be a great location as it is one of the most advanced countries of the continent.

Nigeria : Nigeria Is also expected to grow in terms of population, this will mean an increase in
demand and also a substantial source of human resources that Amazon can utilize. The population
here Is mostly urban and with increasing purchasing power, can be a great source of revenue.

While entering these countries, Amazon should look to implement the 3 C’s – Commitment, Co-
Evolution and Cost-innovation, it should understand that it needs to properly understand the
culture dynamics of these countries, and also evolve along with them in their journey along with
making strategic innovations in it cost.

Conclusion

By the next 5 years, Amazon is sure to evolve as e Meta-Organization that is supported by a huge
ecosystem of products and services. For example, people may be using Amazon in all fields, from
retail, clothing, insurance, media, payment, lending. And this will be achieved by leveraging its
current portfolio- like using its supply chain network in retail, pharmacy and other industries,. Along
with this, we can expect Amazon to expand into newer countries and develop expert last mile
delivery solutions in the existing ones in such a way that they can fulfil the orders within just 1 day.
And this can only be achieved through continuous strategic and management innovations which has
made Amazon a Global Phenomenon today