Which of its competitors does Bezos need to pay the most attention to, and why? And how should he deal with them in terms of devising Amazon's business and corporate strategy?

 

Amazon needs to pay attention to their competitors like Walmart and target which even though are players in the offline retail channel but are big players with a strong supply chain network and hence can anytime compete with Amazon by increasing their presence over the e-commerce space. Since having e-commerce space is not a capital intensive strategy, players like Walmart can enter this space easily and compete with the like of Amazon by using its strong supply chain network. This is why Amazon needs to keep in check the competition from giant retailers and work towards strengthening its supply chain.

To deal with the players like Walmart and target Amazon should develop a strong supply chain network by making innovative changes in this domain which will significantly reduce the cost of the supply chain network and also make it more efficient posing strong competition to their competitors. Amazon can also acquire some of the small and unique highly growing retail players around the globe to increase its presence in the offline retail channels and be available to pose competition to Walmart by using the supply chain network of the acquired retailers who are growing at a high pace. These ways can be used to develop a strong business strategy by Amazon to counter the competition.

As an Investor, I would not be concerned with Amazon's inconsistent profits as long as those profits are invested back into the projects which have the high potential of disrupting the organized retail space which can create immense value for the customers. It will be wrong on my part as an investor by being myopic and not able to see the value-creating opportunities which can heavily monetize the business of Amazon and reduce the risk of the business by proper diversification strategy. hence, as an Investor, I would not be worried as long Amazon is involved in creating value through innovation and advanced technology. As investors who share the view of value investing will support the initiatives of Jeff which are aiming towards diversification and hence would be supported by the investors and will allow Jeff to make the business more valuable and less risky by appropriate diversification. Hence, Investors are more likely to stick with Amazon for a longer period.