Amazon disrupting the oil industry

Amazon is not happy just by being the second largest company in the world; it continues to prove itself as it endures to diversify its products and services.

Amazon demonstrates that no industry is safe. Since it has released its private label motor oil, Amazon Basics Synthetic Motor Oil, various industry analysts have begun to downgrade oil stocks. The latest one was last Friday when JPMorgan turned bearish on Valvoline Inc which saw its share prices sinking by over 4%.

It is anticipated that such press releases will become commonplace in the coming months as news about Amazon’s latest product and category entry gains publicity. Retail and business analysts always regard Amazon’s entry into a category as having a detrimental effect on established brand.

Private label business is becoming extremely strategic to Amazon and as of July 2018, Amazon has a total of 76 private labels.

No industry or sector is technically safe from Amazon. As Jeff Bezos has repeatedly said “Your margin is my opportunity.”

This is very true as the company can enter every market by selling the products online. It does not really need a physical store and does not have any physical infrastructure constraint.

0 - Comments