Humans prefer to get their tasks done in ways that take the least
effort possible even if it would take longer time. Therefore, Companies
started to realize this notion and then started to utilize it in their own business. As a result, many products and services came out that focus on quality and quickness, people liked the companies’ new direction and as a result, these services and products are in high demand. Consequently, many innovative companies appeared in the field and were ranked among the top. Amazon is one of the most popular companies that have benefited from the quickness concept. Amazon is an online market that anyone can access through the internet and purchase whatever item he desired. However, investing in Amazon is a controversial topic that people have talked about, some are opposing because it depends heavily on shipping companies, while others see the potential to gain huge profits from it. Investors should invest in amazon because of the facts that amazon is monopolizing the e-market, and customers can’t abandon amazon’s technologies in smart homes, as well as the clear plan that amazon has to electrify its transportation.
A major reason why investors should invest in Amazon is that it is
monopolizing the e-market. Online retail contributes to a tremendous percentage of total sales, the investors can’t neglect this aspect of the market. Amazon, owing to its popularity, is way too far ahead of its nearest competitor, this explains why it is the first place for most people to look for their items. Tedder (2022) states that in every four online purchasing processes at least one of them is from Amazon, which is the double ratio of its nearest rival, Walmart. This means that, without a doubt, a considerable number of people are preferring Amazon over any other online retailer. Amazon is planning to expand its branches and acquire more loyal customers, this is what most of its competitors haven’t done. As a result, Amazon has way more shares than others. Statista (2021) illustrated that Amazon has led the e-commerce shares that if its two biggest rivals share combined, they wouldn’t reach a third of what amazon possesses. This suggests that Amazon is well-known across the globe and doesn’t depend on a specific regional market. Another fundamental reason why investors should invest in Amazon is that customers can’t abandon its technologies in smart home. Recently, smart home market has witnessed a steep growth. Therefore, smart home market should be focused on by investors as there is a great potential to gain profit from it. Tarasov (2022) states that the smart home market in United States was valued at no less than $100 billion in 2021, this is higher by a one fifth compared to the year before. This indicates that the market hasn’t reached its peak yet, and will keep growing further. Amazon is leading this market with the current technologies it has, alexa for example. Alexa is a voice assistant system that receive commands from the user and implement it immediately by using voice only, this echo-system has put them in a position to be on the top of the companies regarding smart home. Moreover, According to Sriram (2022), Amazon, in order to stabilize its improvement in smart home technologies, they have acquired iRobot in a deal that coasted them over $1.5 billion. This tell us that Amazon is Not willing to let go of its leadership, but instead it is trying to extend its dominance in this market by collaborating and investing in other companies.