Question: Read the following problem-solving mini-case for Amazon and answer the questions at the end. Amazon is known for its disruption of well-established industries through technological
Read the following problem-solving mini-case for Amazon and answer the questions at the end.
Amazon is known for its disruption of well-established industries through technological innovation and mass scale. It is the world's largest online marketplace, AI assistant provider, live-streaming platform and cloud computing platform as measured by revenue and market capitalization. Amazon is the largest Internet company by revenue in the world. It is the second-largest private employer in the United States and one of the world's most valuable companies. As of 2020, Amazon has the highest global brand valuation.
Amazon Marketplace is an e-commerce platform owned and operated by Amazon that enables third-party sellers to sell new or used products on a fixed-price online marketplace alongside Amazon's regular offerings. Using Amazon Marketplace, third-party sellers gain access to Amazon's customer base, and Amazon expands the offerings on its site without having to invest in additional inventory.
In December 2016, Amazon introduced Amazon Go, which is a 1,800 square foot grocery store in Seattle, Washington (USA) with the most advanced shopping technology so customers can shop and then walk out with their products without waiting in lines or checking out. Shoppers use the Amazon Go app and the store is enabled with their Just Walk Out shopping experience, which leverages multiple technologies such as computer vision, sensor fusion and machine learning. The virtual shopping cart tracks items and when leaving the store, the shoppers Amazon account will be charged.
Question: Describe the key concepts of the digital marketplace and their impact on the digital marketplace. In doing so, consider how digital markets are different to real-world bricks and mortar markets and how digital goods are different to physical goods.
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