Amazon (B): Competing against a Giant

Although Amazon was founded as an online bookstore, as it increased its scale, broadened its scope, and enhanced its capabilities, it enabled merchants in many categories to address much larger audiences, especially in geographically dispersed niche markets. In the wake of its success, many online and brick-and-mortar retailers permanently closed their doors.

The breadth and depth of the company's impact worried policymakers and competitors alike. As regulators contemplated antitrust action, players in book retailing (Barnes & Noble/Waterstones and independent bookstores), merchant fulfillment (Shopify), and brick-and-mortar retailing (Walmart), as well as China-based online selling companies JD.com and Alibaba, pursued strategies to contend with Amazon. Each company pursued a different strategy, but all found ways to use their strengths to create value for their customers that Amazon could not easily imitate.