How can Amazon be stronger?
Amazon closed the year 2016 with many records. The company achieved record profits for six consecutive quarters. On the other hand, Echo’s home automation center and its accompanied voice assistant Alexa achieved significant growth on the hardware side during the year. The company is becoming more and more powerful on the entertainment side as well. By the end of the year, the Amazon Video Prime service was launched in many countries, and at the same time it started producing original content for this service.
For 2017, Amazon will be a little bit harder in this regard, with the cove going higher. The company will have to make a lot of effort to get over the years left in 2017. It is highly likely that we will not see remarkable moves in the following areas in 2017:
Interest in logistics will increase
Amazon is spending billions of dollars in shipment operations every quarter. As the company commits to deliver many products, from toilet papers to TVs, in two days or less, the costs are also rising. Last year, the company rented trucks, planes, and ships to save money, and tried to get service from shipping companies like UPS and FedEx. Even the company began to test drones for door-to-door deliveries. As a result, we can say that Amazon will use more of its own resources to deliver orders to the door.
Artificial intelligence and more investment in Alexa
Amazon, who invests in Echo and in Alexa, which is able to respond to variety of commends including playing songs or even making orders, appears to be in front of Apple and Google in the field of virtual assistants. However, Google is trying to capture it from behind with its own virtual assistant, Google Assistant, and Google Home, the automation device that houses it. We will see in 2017 whether they will continue to maintain its lead in this growing market.
Amazon is investing heavily in its virtual assistant, Alexa. In a recent interview, Amazon’s CEO, Jeff Bezos also said that more than 1000 employees spent a lot of time on this service. Moreover, the company is continuing its new recruitment now.
We can see that Amazon goes to new collaborations in 2017 to put Alexa in devices that do not carry their own brand. For example, the company recently announced a partnership with GE to add intelligent lamps to Alexa.
The basis of the physical store chain may be disposable
It may be a year when Amazon begins to turn themselves into an online store chain of physical stores. At the end of 2016, the company opened a store in Seattle where Amazon sold food and other market products. Shoppers are scanned in an area of about 167 square meters as they scan their smartphones to a reader, get the products they want and then leave the store without waiting in the bar. Thanks to the technology, shopping carts are automatically read by the shoppers and their bills are cut off when they leave the store. It is not known if Amazon will open more Amazon Go stores in 2017. The store in Seattle is currently a test area.
In addition, Amazon gradually opens the door of physical book shops. User comments coming from the Amazon e-commerce site use data such as scores, and determine which books should be kept in the store. In addition to books, Amazon’s bookstore offers customers the opportunity to try and buy devices such as the Amazon Kindle. The number of these four physical book stores is expected to increase further in 2017.
More investment in original content
Amazon lives in a huge content world. Over the past few years, the company has been intensively buying movies, TV shows and documentaries, and plans to exacerbate competition with services such as Netflix and Apple, which produce their own TV series and movies and offer online monitoring.
Most of the their original content is addressed to members of Prime, as well as members who have subscribed to the their new video-only new plan. Brian Olsavsky, chief executive of Amazon, said the company was aiming to triple the amount of original content for the rest of 2016. In 2017, we can easily say that this rapid growth will continue.
The online service continues to invest in India, as well. In early 2016, it announced that it would spend $ 3 billion to expand its services in this country. In this case, the investment of the company for the region reaches 5 billion dollars. In 2016, the Prime membership service wants to repeat its success in the United States and other countries that have been operating in India. In addition, Amazon said it would include Prime Video service in its subscription package. This can open up to Indian clients to reach more original content that includes Indian filmmakers and actors.