Amazon Control Your Life

The line Amazon The Everything Store is a big lie. To hide that truth from you which can change your life. The company which started from books selling, No one thought that one day that company will be the biggest danger for everyone in the world. Some of us believe Amazon is a tech company, And many of us believe that Amazon is an E-Commerce company. But in reality, Amazon is much more than that. Under the shadow, Amazon is doing many things from which in upcoming time that no one's life can work without Amazon even a single day. But behind all this, this company has a side which no one knows. Jeff bezos is building such Empire which will control our lives in upcoming time. And this is too dangerous. 

In 1994, Jeff Bezos starts a company, from his garage by parents lifetime savings $250k by the name relentless. But his friends suggest that name is too Evil so he changes it to Amazon. In 1997, company launches IPO and everything is going fine. Suddenly in year 2001 dot com bubble crashes. And $100 stock of Amazon comes to $6 in a night. But somehow they managed to survive it. And after this crash Amazon realizes they need powerful Tech infrastructure. And to do that crisp income and Benjamin black, they both go to Jeff bezos with documented plan. Plan gets execute and then Amazon Web Services start. No one has thought at that time that AWS will become so powerful that it will control maturity after the internet. But interestingly, this was just the beginning. If you look closely, 50.4% of revenue of Amazon come from Amazon online store. Whereas AWS receives only 12.5% of revenue. But you know what? 

AWS is the most profitable venture of Amazon. There is one thing which provide Amazon an unbeatable advantage over any other company and that is Alexa. This small device is so powerful that you can't even imagine. How? To understand this, you need to understand these three things. If you look closely, then amazon's ecosystem is made up of these 3 things. First, AWS's operating model. Number two, Alexa's network. And number 3 integrated network. Take an example of a computer, using a computer either you will use Mac or Windows. These operating system allows you to run other apps on your computer. So basically your operating system's work is to make the other resources work. Now look at AWS, it has multiple computers which are known as tech servers. which, through cloud-based services, all computers using their services provides unlimited storage and unlimited computing power to them and with that many tools through which they can build their program can build their technology. Netflix uses AWS server to provide it's service to you. So basically all the data of Netflix gets stored on AWS server and stream from there and all the recommendations you get for movies and shows That too is given by AWS machine learning. Slack, a business messaging app, also uses the AWS server so that AWS machine learning will help them to integrate audio and video calls. Now the interesting thing is Slack is business messaging app so their customers are businesses. So all the audio calls and video calls of that businesses Are all done through AWS servers. The ultimately Amazon Gets All That businesses data too. So in a way, Amazon knows which business is planning to do what, and at what time. I know you are thinking about why these businesses uses AWS. Just one word, operational leverage. AWS provides cloud services so if any business wants to expand or contract anytime then they can take AWS storage according to their requirement whereas, If they are doing that thing by themselves without AWS, then they have to spend a lot for infrastructure to increase the storage. And once they spend and the business is not working and want to reduce the storage, then too they cannot sell that infrastructure. And due to this value proportional of leverage one third website present on the internet today runs on Amazon Web Services only. That's why when AWS outage was done then thousands of websites were shut down. Amazon is big and complex both, There are many things inside the company which make it futuristic. Institute for local self-reliance says that with 42% of cloud market share Amazon controls too much of web infrastructure but, question is, as consumers what is being done with us which can be too dangerous for us in the upcoming time. 

This brings us to the second thing and that is, Alexa network. Amazon sells all its Alexa devices at breakeven prices means no profit no loss. And during sale time they even sell it at a loss. But why? One thing 900 MHz transmitter and receiver Now look at this very carefully. An Alexa device is not so powerful that whatever you say process it and work on it. In reality, Alexa device has microphone, speaker and 900 MHz transmitter and receiver. So, whenever you say something to your Alexa device that is being heard by microphone, and then send to AWS server through transmitter for processing. After this data is processed and whatever command you have given is followed. But with that whatever you are telling your Alexa that stores on AWS web server. Which is used later for your customer profiling. By using it, Amazon knows how your music taste is, what kind of TV shows and movies you like, and moreover which product you need or are thinking to buy. But the most interesting thing which many people don't know is that the 900 MHz of transmitter and receiver works without internet too. If you are keeping one more Alexa in 500 metres range then unknowingly, that both Alexa will connect themselves. And in the same way, many Alexa within their 500 meter range will connect themselves forms a proper sidewalk network. And this sidewalk network is so powerful that if any one of Alexa device is connected to internet All the data of that Alexa devices will reach the AWS server. So in a few years when lakh's of Alexa devices will connect Then Amazon will know many things about your life like your location, activities, preferences. Even if you are Alexa device is connected to the Internet or not. Company tries everyday that they bring more and more things under their Prime membership. Because Prime membership is the major entry point to enter in Amazon ecosystem. And if you closely observe, Amazon to sell it's prime membership Mainly uses these two ways, one, high delivery fee. For example, you go to Amazon to shop and select 3 to 4 items and it adds up to 5000 rupees. Now Amazon will add 200 to 300 delivery charge on that. And with that will ask to take 179 per month membership instead of that. You will think to take prime membership because one you will save money and moreover I will get to enjoy Prime video and music too. So it's a Win-Win for me and number two festival sales. If you observe closely then the top shows on Amazon Prime video like Panchayat Family man, Mirzapur all these shows, always on their festivals or before sale season, they are launched. Why? Because whenever a new season or these shows will launch, Then you will buy prime or borrow from your friend to watch this. The benefit of this is that when Amazon festive season arrive you shop from there only. But biggest thing is through these shows Amazon brings you into their ecosystem. And there are high chances that who once bought prime will buy Alexa devices too. And then the real game begins, which brings us to the third most important point. And that is integrated network. Many of us still believe that Amazon is crushing competition. Why? Because in competition of Netflix there is Prime video, In the competition of Spotify, Prime music and in the competition of FedEx & UPS, prime air. But if you look very closely then Amazon have much bigger plans. To understand this we have to closely analyse Amazon's subsidiaries. A9 is a subsidiary of Amazon which works on researching and building innovative technology. By using which, audible, brilliance audio, comixology where comics are published And create space publishing where independent creators publish. Amazon is integrating all these thing in one. Kuiper system through which Amazon send 3236 low orbit satellite in space  is setting broadband satellite internet. Twitch which is the biggest live streaming network of this world, with that Amazon has acquired a company named ring some time before Who makes home security device which was integrated with Alexa will collect all details and activities from your home and share with law and enforcement. 

So basically police will know that who is coming to your house, who is going and what you are doing. Smart vacuum cleaners which will send all the data to AWS server through Alexa. So basically now Amazon knows how big your houses and what is kept where. Which will help Amazon to create a super profiling of yours. Zoox which is an autonomous Vehicle company and once you started using their cars Then after that, all the data will be stored on AWS server. With that Alexa's data too and combining all these data Your profiling would be done in a better way. Whole foods which is not in India but in foreign countries Whenever someone shops from whole foods they pay through Amazon pay only. Integrating both these data will help Amazon to predict your buying better. Amazon music, Kindle, pantry, stores, pay and Prime video When all this thing, from that 30% website which are running on Amazon web server, Combines with all of them and gets integrated Then Amazon get to know that about you which your family members don't. But have you ever thought that how it is so easy for Amazon to take entries in new businesses? One reason brand elasticity. Imagine that Pepsi or Microsoft is opening a grocery store. Will you accept that easily? Not really but if Amazon does this then we accept easily but When it comes to businesses then it gets really dirty And all this is done through Amazon basics. To sell any product a seller has to go through three stages Number one introductory cost. When he introduce his product in the market he spends a lot of money. Stage 2 expansion cost. Now it has established in a market a letter to expand it more money is required. And 3rd profit booking. The third party seller on Amazon, their majority money is invested in introductory and expansion. But you know what Amazon doesn't need to do all these things. They directly operate through profit booking stage. 

This happened with many sellers that their product on Amazon is selling superb Looking which Amazon manufactures that same product from its third party manufacture And that too on a bulk order so they get it in cheap rates after that, Making the amazon basics branding on that product they list it on the top of the Amazon. Which is basically undercutting all the sellers, And making own dominance by selling at cheaper price. Plus on top of that where most of the deliveries of Amazon were did by FedEx and UPS All those deliveries today is done by Prime air and Prime logistic. And in many cases the customers of FedEx and UPS has been taken by Amazon by providing them cheaper services. Majority of startups uses AWS server by which Amazon knows which company is growing and which is not. Using which they invest in many startups before the company goes public. I know you are thinking, then why no anti-trust regulation have taken steps against Amazon? Amazon regularly practice this kind of business practice. They hardly pay any taxes. Still no action taken against company? The answer is again in anti-trust laws. Antitrust laws. Before 1980, the Chicago School regulations were basically using this principle which was against concentrated market stuctures. At that time it was used to happen, that companies by merging themselves  made a huge concentrated market structures. Either through vertical integration or horizontal integration. Which was basically done to maximize profit. And to sell expensive product to the consumers. But after 1980 there were many amendments done in regulations. And then Chicago School Revolution became anti-trust Paradox. Whose sole objective was to maximize consumer welfare. So basically anti-trust will be that in which there is any kind of harm to consumer. Either the prices were increased or the consumer were restricted from something. Over the time, Anti-trust moved from structuralism approach to price theory approach. And if you observe Amazon closely  then it is famous for providing lowest price to it's consumers. So Amazon always says that whatever I am doing is doing for consumers. My consumer is not having any problem I am giving them low price So technically I do not fall under the anti-trust regulations. And many few people know that Jeff bezos CNN and CNBC have donated millions of dollars to these both media houses too. And on top of that, they also control Washington Post. which comes under Amazon. So, technically Amazon controls the whole media too. Whenever media get any information which can destroy it's reputation They simply cut it out for example when Jeff Bezos  was caught cheating his wife, so media wrote about it but because Jeff is so powerful and influential That he got away with it. Now the question is, That if this company is so dangerous then why do we support it? Honestly this has two side if we look from business owner or and employee's perspective Then yes  it is very harmful. Businesses are eventually cut down and employees 24/7 are monitored through camera or sensors. In fact many times the employees have to go washroom inside bottles Because their targets are set in such a way that they cannot afford to lose their time. On the other hand, if we look from a customer perspective  then there will be no such thing as privacy in upcoming future. But yes through some point Amazon make our life easy. Whether it is controlling multiple devices through Alexa or whether one day delivery with low prime prices or prime's entertainment.

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Credit: Aditya Saini