Why amazon is cooler than Apple and Google?

According to the annual report of Brand Finance analysts, Amazon for the first time became the most expensive brand in the world - almost $ 151 billion. The price of the closest competitor is Apple - $ 146 billion, then Google is on the $ 121 billion, unlike two other technological companies, it is practically not represented in Russia, its main market is North America. The main Amazon business is e -commerce, streaming services and cloud infrastructure, but recently the company is increasingly going beyond the Internet, creating its own products and opening stores. All this could not but affect the assessment of the cost of the brand.

1. Growth

Back in 2017, the Amazon brand was estimated only at $ 106 billion, over the year its cost increased by 42%. The company's revenue is constantly growing : according to the results of 2016-by 21.31% (up to $ 135.99 billion), and according to the results of 2017-for a record 31.1% (up to $ 177.9 billion). Yes, Amazon is not chasing profit , but it spends money on development in all directions. At the end of January, the company expanded the FBA ONSITE - the service of quick food, household chemicals and other products that can compete with FedEx and UPS. In December 2017, Amazon announced the opening of the Chinese department of the Amazon Web cloud service. In addition, the company is constantly expanding the presence on its main field of activity - in the field of e -commerce: a huge warehouse is going to open in Australia, and the fast delivery service of Amazon Prime reached at the end of last year to eight thousand American cities.

2. An innovative approach

Amazon, starting to work in the 1990s as an online book for the sale of books, became the most innovative company of 2017 according to Fast Company magazine. “Our work is to come up with new solutions, which no one even thought about before. And to see if they will like customers, ” said Amazon founder Jeff Bezos. One of the earliest innovations is the mechanism for the purchase of goods in one click, when a person could press the goods and buy it without entering the credit card and address again. Now it has become a universal standard.

Now almost all innovative decisions of the company, Fast Company, are related to the Amazon Prime service. Clients receive for an annual subscription of $ 99: operational delivery of goods, a free book in electronic format every month, access to discounts and the ability to watch a video on the Twitch striming service (Amazon bought it for almost a billion dollars in 2014) without advertising. For the surcharge, Prime offers more than 50 additional options, among which - a subscription to HBO and delivery by drones . On average, Prime subscriber spends about $ 2500 per year on Amazon.

As Wired wrote in 2014, in which technological giants-Apple, Google and others-will not be able to bypass Amazon, is in the organization of logistics and work of large warehouses, where not only retailers, but also small partner companies are stored. Robots work on some storage facilities, which are more efficient to cope with the transportation of goods than the company's employees (Amazon invested $ 775 million in the developer of automatic devices in 2012). In the warehouse, each employee has a personal computer where orders come. After that, the employee needs to approach special shelves where the goods are stored, take the right one, pack it and give it for loading. Amazon plans to create a special bracelet for warehous workers that will control movements and report if the goods are put in a wrong container.

3. Exiting offline

Subscribe to read the whole

Make a subscription Redefine.media to read Republic

Subscribe [you can pay for a Russian or foreign card. The subscription is extended automatically. You can unsubscribe at any time.]

Where are the money subscribers going

Most Republic materials are available by paid subscription. We believe that this is a good way to finance media. After all, as you know, if you have not paid for reading it, then someone else paid for you to read it. In our case, everything is honest: from your money, salaries and fees are paid to journalists, and they write about important and interesting topics for you.

The key feature of our subscription: your money is distributed between Republic magazines depending on how you read it. If you read the materials of one magazine, then your money will go only to him, while others will not go. That is, you finance only what you are interested in.

Republic uses the Redefine.media subscription. For design, we will redirect you to the Redefine.media website, where you will need to register and pay for the subscription. Authorization on the Redefine.Media website will allow you to read Republic materials from the same device.