Amazon is not just an online retailer; it’s an operating system for the digital economy. It has built a platform that serves as a foundation for a multitude of other businesses, ranging from independent sellers to large corporations. Its vast infrastructure, sophisticated logistics, and consumer reach have made it a formidable force in the market.

The company’s approach is largely based on its “flywheel” strategy. This involves driving more customers to the platform, which in turn attracts more merchants, leading to a wider selection of products, lower prices, and an enhanced customer experience.

Amazon Web Services (AWS) is another crucial aspect of Amazon’s operations. It provides the necessary computing power for businesses of all sizes, and its profitability enables Amazon to invest in other areas.

The retail giant’s ambition is not limited to e-commerce. It’s also expanding into areas like entertainment with Amazon Prime Video, and groceries with Amazon Fresh, demonstrating its intent to become a pervasive presence in consumers’ lives.

Despite its dominance, Amazon’s success isn’t guaranteed. It faces challenges from competitors like Alibaba, and regulatory scrutiny could potentially limit its growth. Nevertheless, its ability to leverage its platform to enter and disrupt new markets continues to make it a significant player in the digital economy.

Go to source article: https://stratechery.com/2017/amazons-operating-system/