Amazon's Complementors
One concept discussed in Chapter 3 that resonated with me in relation to Amazon was the concept of complementors in the industry. This was a concept I had never been aware of before but after reading the description it made perfect sense that this force was one Amazon definitely possesses. Complementors are defined as separate firms that help customers value your firm more when they are present. It is almost described as a co-dependent relationship between two entities where both parties need the other's presence to succeed. When I started to apply this concept to Amazon, it seemed as though they not only possess the complementor force but have mastered it and made it one of the focal points to their incredible success.
Amazon began selling primarily one category of products, books and book related items, however obviously this business model has changed significantly over the years. As we're all probably aware, the current Amazon platform serves as a marketplace for thousands of vendors across all product categories to sell their goods directly to the consumer in one of the most seamless, efficient ways possible. Amazon allows these vendors a very unique opportunity to easily access their customers which means the vendors need Amazon in order to be seen as valuable. However, what would Amazon be without the vendors? Amazon certainly would not have the value it has today without the volume of vendors/suppliers currently on their marketplace. If the amount of vendors were to significantly decrease overnight, Amazon's value would surely be equally impacted and vice versa is true as well. If Amazon were to significantly cut the vendors offered, those vendors would be significantly impacted decreasing their value.
This mutually dependent relationship on another firm for value signifies the force of complementors Amazon currently possesses and masters. As consumers, we are the beneficiary of a positive complementor relationship as more vendors increases competition and drives prices down all while increaing Amazon's value. Amazon's ability to differentiate this complementor relationship concept from a traditional competitive concept just further proves their excellence and dominance within the industry today.
Amazon began selling primarily one category of products, books and book related items, however obviously this business model has changed significantly over the years. As we're all probably aware, the current Amazon platform serves as a marketplace for thousands of vendors across all product categories to sell their goods directly to the consumer in one of the most seamless, efficient ways possible. Amazon allows these vendors a very unique opportunity to easily access their customers which means the vendors need Amazon in order to be seen as valuable. However, what would Amazon be without the vendors? Amazon certainly would not have the value it has today without the volume of vendors/suppliers currently on their marketplace. If the amount of vendors were to significantly decrease overnight, Amazon's value would surely be equally impacted and vice versa is true as well. If Amazon were to significantly cut the vendors offered, those vendors would be significantly impacted decreasing their value.
This mutually dependent relationship on another firm for value signifies the force of complementors Amazon currently possesses and masters. As consumers, we are the beneficiary of a positive complementor relationship as more vendors increases competition and drives prices down all while increaing Amazon's value. Amazon's ability to differentiate this complementor relationship concept from a traditional competitive concept just further proves their excellence and dominance within the industry today.
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