In light of Amazon's announcement about its plans to provide 30-minute delivery services via aerial drone on the eve of Cyber Monday, which is a marketing term coined by companies to incite people to shop for tech deals online, a Forbes newsmagazine pointed out that the e-commerce company's complete dominance in its market rested on two things - its ability to launch sophisticated services via its massive facilities and its solid relationships with power buyers.
Since touting itself as the biggest bookstore on Earth in the mid-1990's, Forbes said the company's size was not necessarily a factor to its success. Amazon's large-scale regional facilities had allowed the company to establish tiered services in partnership with logistics firms like FedEx. Moreover, Amazon has prided its relationships with online goods buyer base who can determine what the company's deals are deemed good for value.
Forbes said Amazon's push to provide quick delivery services via drones was a good move and could create potentially massive new markets for the company, easily making it a leader. However, the newsmagazine in its article cautioned that new markets often has its challenges that Amazon needs to face. With the drones alone, Amazon needs to pass hurdles stemming from Federal Aviation Administration regulations alone, and a slew of practical issues could arise from commercial uses of aerial vehicles previously used for military services.
On the other hand, Forbes said in its article that Amazon's bravery to delve into new markets despite potential barriers ahead that it had already acknowledge introduces lessons that Internet and even other companies need to learn.
"When the company offers its consumers new services, such as exclusive concert ticket reservations, competitors have a hard time matching the proposition. It is now able to undercut the industry leaders in ways that should pain the incumbents greatly to replicate," the report said.
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