Question

5. Does it make good strategic sense for Amazon to be a competitor in the e-commerce, cloud-based computing services, and personal media device industries? Which of its three principal product lines—e-commerce, cloud computing services, or personal media players—do you think is most important to Amazon’s future growth and profitability? Why? Should any of the product lines be discontinued?

Answer 1

Since Amazon's main business is e-commerce it is obviously making good sense to be in this field. Amazon is not the first player in the cloud based computing services and personal media devices industries so one question on their moves in this sector, but if we carefully observe then we will find that there is interlinkage between these services and Amazon is leveraging it beautifully.

E-commerce is now in maturing phase and since Amazon has its presence many bigger market like USA, Europe and few emerging markets like India, it will not make much future growth. I think personal media players industries will be best for the amazon since there are very few players and lots of possibilites to content creation. Amazon should focus on this verticals.

I will say cloud computing services can be discontinued because there are many player who are providing this service and due to data privacy issue and sometime conflict of interst issue raise doubt in the acceptability of closud services by the clients. Still many companies are not comfortable to move into cloud.