Analysis of Amazon’s Acquisitions with E-Commerce

Abstract

Amazon has become one of the most influential companies in the world mainly for its online shopping service; however, it is evident that Amazon is exploring other fields such as grocery business, streaming services, and vehicles. One of the significant methods that contributes to Amazon’s rapid growth is acquiring other companies. Each acquisition made by Amazon indicates its ambition to expand the market into a new area, which furtherly enriches its brand’s content. In addition, Amazon does not simply buy companies to compete with others, but it also incorporates its own advantages in e-commerce—a sophisticated platform with a large customer base. The acquisitions of Whole Foods and Metro-Goldwyn-Mayer(MGM) are two epitomes that illustrate how Amazon combines its own technology with the content of the companies it acquired to compete with others. With Amazon’s powerful platform, it provides plenty of information to the customers and collects the data from them in turn, which can be applied to many areas Amazon has involved. Since people nowadays are using their devices more frequently, it increases the possibility of accessing more information, giving Amazon chances to infiltrate into their lives. As a result, the more areas Amazon reaches, the more profit it can make with its e-commerce.