Which company, if any, can challenge Amazon? 

My answer may surprise you, I see huge potential for Facebook to challenge Amazon as the biggest marketplace in the U.S.  Facebook can purchase the front-end (website) and the back-end (logistics). Facebook’s core competencies can challenge Amazon.  One, they have the brand and the following (over 215 million users in the U.S.)  Also, they have the information going beyond what you have bought, to more importantly know what you will buy.  This predictive capability not only makes buying Facebook advertising a good investment but makes sense for them to facilitate the sale through Facebook Marketplace.

How can the supply chain industry respond to the Amazon threat? 

“Amazon is the Everything Store” as their logo illustrates everything from A to Z.  Amazon is everyone’s competitor.  When I hear people say Amazon is not a threat to their business I just smile. This has been said for 20 years now and every year another industry sector wakes up to discover Amazon is their competitor.  Amazon is not a competitor but rather a threat.  

  1. Amazon is very good, very, very aggressive and very, very, very smart.
  2. Amazon does not manage to the next quarter, but rather focuses on long-term thinking.

Amazon is a threat, here is how to respond.

  1. You cannot respond to the Amazon threat by copying them.
  2. To respond to the Amazon threat, you must use innovation to substantially disrupt their leadership position.
  3. To disrupt Amazon, you must uncover business secrets that will significantly improve on their business model.

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Jim Tompkins
Jim Tompkins