Goes to show that even a dominant player like Amazon can take a hit once in a while, especially if it was focusing on different priorities during the pandemic. But while this was happening, some notable retailers such as JC Penney and Neiman Marcus were pondering store closings and bankruptcy. The post-pandemic world will truly test the capability of businesses to change or adapt their business models, or possibly face extinction.
While Amazon Was Distracted, FedEx and UPS Made Their Moves
Earlier this year, analyst James Brumley suggested the biggest threat to Amazon wasn’t a major competitor like Walmart but rather a gang of companies collectively taking action to combat the e-commerce giant’s dominance. It’s an effort that could take years to make a full-sized dent in Amazon’s growth, but it’s something investors would be wise to watch nonetheless. A handful of that gang of competitors just announced their next moves in their chess battle against the king of online shopping. With Amazon’s delivery ambitions on hold while it focuses solely on meeting consumers’ needs in the midst of the coronavirus contagion, FedEx and UPS each made deals with small and medium-sized businesses that may already be frustrated by the online sales platform’s heavy-handed ways. Neither move is a death blow. But this is the sort of action Brumley was talking about.
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