More on the GAF Effect, Some Thoughts on Amazon

Not too long ago, I wrote about the GAF effect. GAF refers to Google Amazon and Facebook. I specially noted the effect of these behemoths to print traditional media, and the evolving of business models.

Let make a few points, while we associate Google with searches on the internet, as we would surely say Bing, the next biggest search engine by way of search numbers. Well, actually for some generic words, the next ranked is Amazon. I know, crazy, huh. But when internet users search for keywords, they also tend to go to the local Amazon site (there are currently something like 15 sites at the present time, dot com being the US site, dot com dot au, the Australian site and so on.)

And, just to get you in touch with their history, let’s go to Wikipedia, which refers to Amazon as an e-commerce and cloud computing company. based in Seattle Washington, the company was found on July 5, 1994 by Jeff Bezos.

Now the largest internet reselling in the world (measured by revenue and market capitalization) and second largest after Alibaba Group in terms of total sales. Amazon started as an online bookstore and diversified into video downloads/streaming, MP3 downloads, streaming, software, video games, electronics. etc.

Let’s not forget that the company now sells electonics, apparel, furniture, food, toys and jewellery. And, Amazon produces consumer electronics, which include Kindle e-readers, Fire tablets, Fire TV and Echo. The latter is the world’s largest provider of cloud infrastructure services. They also sell come low-end product under their in-house brand Amazon Basics. The company also is in the grocery business (through the ownership of Wholefoods), delivery/shipping and even maritime, as the company holds a Federal Maritime Commission license to operate as a non-vessel-owning common carrier (NVOCC). And so on.

Well, we don’t want to cover the size and the diversified nature of Amazon, but cover some of the aspects of the company that related to the internet and marketing communications.

And, for those of us who live in Australia, who can miss the big houhaa about their Australian launch. Personally, I’d label it a whimper, rather than the big bang promised. We should not discount the power of Amazon to expand. It’s not just the deep pockets of this huge conglomerate but their other resources, which will allow the company to achieve it’s stated goals.

So, a few notes to take. Amazon used to sell books online. And, in the same vein, Google started out licensing its search algorithm. They decided to set up their own search engine and the rest is history.

Just some random thoughts on the GAF effect. More thoughts to follow in future posts.



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