Park: Worries and Expectations of Amazon’s Diversification


By Chan Kyu

The expansion of Amazon’s business has occurred at great speeds. It is not like the online bookstore that only recently started its business. The sales have been increasing enormously compared to the past and other competing companies should be attentive of their actions.

There are worries whenever Amazon reaches out to new businesses. Amazon’s strategy to expand its business brings positive effects to the company itself. Amazon has gone through fierce competition against various online circulation companies and being the top-ranked business among them, Amazon’s position and brand loyalty are promising.

Starting from 2017, Amazon launched “Amazon Go,” which is a man-less store. From this business, we can see that Amazon is confident in combining online and offline business. Along with that, Amazon has developed “Cloud Computing Business,” which competes with Google and Microsoft. Even though Google and Microsoft are the leading businesses, Amazon is not falling far behind and is known as the rising star in the field.

Since Amazon has succeeded in various fields, the broad scope of the business world is aware of Amazon’s moves, and many anticipate, essentially, an Amazon take-over.

What would be the reason for Amazon’s diversification? Success. Amazon started as an online bookstore but grew miraculously into a successful electronic commerce and cloud computing company. So, why not continue to grow, expand and experiment?

As the company grows it has room to try new things. Data is at the core of the technology industry. It’s a necessary consideration to remain competitive. Google understands this, but so does Amazon. In a quickly developing IT industry, expanding and trying new things is a business’s luxury that allows it to analyze wants, needs and desires to determine what’s good and bad for upcoming decisions.

Now, any company can lead a certain field like Amazon, but the life cycle of products and techniques are shortened. Amazon has become the leading company with it’s strategy to conquer different types of businesses, allowing it to withstand those product fluctuations. Although, Amazon could be the victim of its own strategy in the future, as there is the possibility that Amazon’s expansion will be followed by other companies.

This trend will continuously be adopted by other businesses. More business owners are beginning to understand Amazon’s business expansion, which stresses the need to focus on connection. They’re seeing the need to consider how newly adopted businesses are going to be connected with the inner parts of pre-existing businesses. They’re better realizing that the value of connecting each business and business type should be considered as well as the purpose of the diversification to ensure that losses don’t outweigh the gains.

Overall, it will be interesting to see what happens as Amazon grows and other companies follow suit.

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