Scott Galloway believes Amazon will win the race to become the world's first private US $ Trillion company. It’s stunning success is vested in Amazon Prime. More people have Prime than voted in the US election. “Amazon is the modern equivalent of the Allied Forces during the Second World War – the Germans had better tanks and better trained officers but the Allies had more gasoline,” says Galloway. It’s might is shown in several areas:
- Amazon has 55% share of product search, making it the market leader over Google.
- Amazon earns 1.2 billion in shareholder value for every employee.
- It is one the fastest growing media companies in the world - the number two spender on original scripted television content.
- Amazon convinced the marketplace to bid up their stock and effectively have no profits.
- Amazon invests 10 cents on the dollar back into the customer experience.
Amazon can overwhelm any sector. They spend more on R&D because their costs of capital is cheaper. Amazon is going into non-core areas because they have infinite capital – their investors don't demand profits from them. Amazon can access the credit markets at lower credit costs than China. A third of all search in three years will involve, not a screen on which people text, but a voice which will respond to their enquiries. Amazon's Alexa has a twothirds share of Voice. Alexa will drive the margin down on every consumer brand, says Galloway. Alexa also has selective memory for Amazon private label brands. Cloud computing is Amazon's most profitable business. Every day Amazon adds more cloud capacity than they needed when they started the business 10 years ago.