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Amazon's Relentless Crusade from E-Commerce to Powerhouse

Image: Amazon's Relentless Crusade from E-Commerce to Powerhouse

By    |   Thursday, 01 February 2018 09:37 AM

Business Empires Uniting East and West

The attempt to bridge the gap between eastern and western powers is a difficult and touchy issue. Ranging from different political beliefs to religious standpoints on contemporary issues, the divide seems to be at a standstill. That is unless, you consider the world of economics. Conversations between East and West may be difficult in terms of dealing with different personal backgrounds and sensibilities. But in the world of business, capital is a universal language that can be understood internationally.

Amazon’s Relentless Crusade

Amazon has grown from a fledgling e-commerce company primarily based in the United States to being one of the bigger powerhouses in the economic power spheres between companies not just in America but on an international scale. Now with the accessibility of just about anything from produce goods to tech gadgets being available online, Amazon has put itself on the top shelf when it comes to consumer services.

It takes a lot of effort for popularity and success to be in the radar of a huge company like Amazon. Driven by his mission to connect the Arab world with the West through international trade, Ronaldo Mouchawar founded the Dubai based Souq.com in 2005. Today, Souq is recognized as the biggest e-commerce platform in the Arab industry, following its western parallel’s steps into making a profitable stand as the “Amazon of the East”. But in a business deal that may not have shocked many, Souq.com received the largest ever funding deal in the Middle East bybeing subsequently acquired by Amazon in March 2017.

Official details haven’t been released, but US news sources estimate the acquisition was in the $650 million ballpark. On December 10th Amazon launched a Global Store on the Souq.com platform, making over a million new products available to the UAE audience. This somewhat unprecedented deal in combining both Eastern and Western e-commerce into one powerhouse of a company might be a daunting step as to how impactful Amazon is in ‘taking in’ various companies focusing on other niches. Just recently, Amazon acquired Whole Foods Market in a whopping $13.7 billion dollar deal being closed on August of 2017 putting it among the long list of acquired companies by Amazon including streaming website Twitch which was acquired for over $970 million.

What Does This Mean for Consumers and Investors?

One of the bigger impacts created by Amazon’s subsequent bold moves in acquiring companies is its sharp and steady growth in becoming one of the biggest influential companies in today’s day and age. By buying off these companies, they reserve the right to monopolize the e-commerce economy in being able to put their own price tags to their services. Though this may not affect their customers’ own ability to set the benchmark for prices’ lower and upper limits for selling, the variety of services that Amazon has been collecting can surely put itself to the top of the investment food chain.

Just after the acquisition of Amazon with its newly-founded partner companies, several companies have had a bump and boost in their stocks, depending on their products. With its acquisition of greater companies with broader services, more and more competing traditional companies are in danger of Amazon’s effect in the stock market. Stock prices drop down inversely to the growth and range of Amazon’s acquired companies; this forces out companies to drop down stock prices which allows investors to buy stocks with cheaper prices.

Setting an Example or Taking Notes?

In reality, this sort of business endeavor has happened before in the past and are presently being practiced to this day. A number of industries and services have had a constant push and pull from America to China and vice-versa. Illinois Tool Works (“ITW”), an industrial conglomerate based in the US, has made an integral cross-country deal in successfully acquiring a similar service-provider in China. This business move gave way to further the expansion of their business segments in actively selling and providing their products to Chinese establishments resulting to over 15% of the company’s overall total revenue.

Now that Amazon has shown that it doesn’t intend to stop with broadening its array of services even going as far as reaching and claiming its eastern equivalent, there’s no telling how Amazon will make use of its influence in the shifting stock market that it can dominate on a whim. Several companies might go for the kill as well in order to compete against the influx of Amazon’s influence in the stock market. One would even think that similar companies would consider replicating Amazon’s bold move in moving towards another international market in the goal of broadening their demographic and their global influence on the scales of international investors.

Industries Making Big Waves

Bridging the divide between the East and the West is a dream of many passionate leaders out there, because the potential for good business and commerce is practically limitless in a land with 0 competition. While we still have a ways to go with regards to there being a true bridge between the two, certain individuals are making waves, giving hope and helping to point their region in the right direction. While politicians are talking and theorizing, these execs are proactively creating sustainable multinational collaborations.

Victoria City, a New Hope for Morocco

Casablanca is considered the financial center of the sovereign state of Morocco and for very good reason. It’s instrumental in communicating and promoting commerce between much of Africa and the rest of the world. Within the suburbs, the construction of a mini-city known as Victoria is making waves as the city to see in 2018. Headed by a passionate individual known as Mazen Al Sawwaf, Victoria City has built a good foundation, with its two main goals to be the center of commerce as well as a city that people of different social classes can coexist in harmony. Slated for completion in June of 2018, this city is a sign of positive change in Casablanca and Morocco as a whole.

Mouchawar and Al Sawwaf are only two of the many Arab business people who are streamlining international trade relations. Without a doubt, they’re making big waves in their industries, not only because of their talent but their desire to stabilize trade between the East and the West. Victoria City is a shining example of what an ultra-modern mini city can be when the intentions are noble and not shortcuts are taken. Souq.com is an incredible example of e-commerce and how the Arab world can continue to evolve not just in this industry but in all of the industries open to them. Their efforts are not only having a knock-on effect on the region’s entrepreneurial ecosystem, they’re opening up cross-border channels like never before.

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Business Empires Uniting East and WestThe attempt to bridge the gap between eastern and western powers is a difficult and touchy issue. Ranging from different political beliefs to religious standpoints on contemporary issues, the divide seems to be at a standstill. That is...
amazon, e-commerce
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2018-37-01
Thursday, 01 February 2018 09:37 AM
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