Written by NHK World
With Japan contributing 12 billion of the 178 billion USD of Amazon’s revenue, there is hope for Amazon to continue servicing the citizens of our nation for years to come. However, with the growth and previous successes of competitors, there are now barriers Amazon will have to navigate.
Amazon holds the position of the largest e-commerce platform in the world. This fast growing company has totally dominated the field for the past years, and has expanded internationally. A prime example is how Amazon Prime Video is about to become available in Japan.
In addition, last year Amazon announced their plan to build a new headquarters. An abundance of cities offered large incentives to draw Amazon to them. Amazon decided to split between two cities, Queens, New York and Crystal City, Virginia. However, the company was unfortunately met with opposition. Many advocacy groups and politicians opposed to this expansion; eventually the tension in Queens was so great that Amazon was pushed out.
In Crystal City there is still outcry from residents that their incentive is too large, there would be potential money loss to the city, and fears of negative impacts on locals, despite the fact that having Amazon there would bring in many job opportunities to their community.
However, push back from consumers is not Amazon’s only worry. Competition from other internet companies are a constant threat as well. As far as the e-commerce business, Alibaba in China is a continually growing company and has proven a large obstacle for Amazon.
Flipkart, and Indian company, also shows a potential threat to the company. Furthermore, with Amazon's expansion into artificial intelligence, cloud computing and cutting-edge technology, JD.com based in China is the current standing competitor to beat.
We hope to see Amazon prevail through these competitive times, and be able to expand their abilities and resources in Japan.