With a market cap of $247.6 billion and a staggering revenue of $107 billion, it is mesmerizing that Amazon (NASDAQ:AMZN) began as just a bookshop. Undoubtedly, one of the most admired American companies in investor circles, Jeff Bezos and his team just seem to do everything right.
Also, Amazon’s ability to spot future trends and innovate to meet them is exceptional.
For instance, when the Amazon Kindle was launched, there was some sentiment that it would be a complete failure due to people’s need to “feel the book”. However, fast-forward to now, and Amazon’s e-reader is much more than that. It is a platform with a stranglehold on the industry. Consequently, any author who decides not to offer their book on the Kindle store is unlikely to make the New York Times or comparable best sellers list.
Amazon has come under significant scrutiny for failing to show a significant profit in the last….well, ever. However, this is due to their strategy of continuous reinvestment.
Despite owning the world’s largest e-commerce site, and AWS, which is forecast to surpass $10 billion in revenue by the end of 2016, Amazon is still hungry for growth.
And this time, they want their products and services to dominate your home and the food industry.
Amazon Is Coming After The Food Industry
Amazon’s infrastructure is arguably the best on earth. Therefore, it makes business sense, that they are leveraging it in order to scale.
Recently, Amazon offered Amazon Prime customers living in Italy, the opportunity to purchase fresh fruits and vegetables for delivery within 1 to 2 hours.
Amazon is a master at landing in a foreign industry and dominating within a short period of time.
In 2014, $594.4 billion of grocery store sales were generated in the U.S alone. Amazon’s brand, infrastructure and execution leave it in a great position to take significant market share in this industry.
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