Comment by hemantv
8 years ago
I guess same with Amazon they are trying to make brands commodity so that they can extract maximum value out of their supply chain.
8 years ago
I guess same with Amazon they are trying to make brands commodity so that they can extract maximum value out of their supply chain.
I'd argue that Amazon commoditized shipping... That's really where they made their name and entrenched their brand recognition.
That's not what "commoditized" means. You don't make your name and brand with a commodity. "commoditize" means making lots of suppliers so there is no producer profit in the market for the commodity.
When you shop at Amazon, you don't buy shipping from whoever's cheapest, Amazon provides the shipping via a complex logistics system interfacing with external partners.
Shipping, catalog production, and order processing. That sounds about right.
It's true, but Amazon also has a strong push towards it's own brands, and they also move towards fully integrated logistics, so maybe their ultimate strategy is of vertical integration and it was so all along ?