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What would happen if Amazon entered the mechanical components sector?

Have you ever seriously thought about the possibility that Amazon could even enter our sector? I am asking this because

not long a rumor began to circulate that the Seattle giant was also considering expanding its horizons in the direction of mechanical components. And not only for the sale of standard products but also for the production of customised parts.

Would you be amazed if this actually happened? Personally I wouldn’t especially if we consider that this is a company that started its activity with the online sale of books and that today, in just over twenty years, it has become a company ranking in fourth place in terms of global economic value, a marketplace specialising in selling almost everything and sending 13.7 million parcels every day around the world.

So, if this is its growth strategy (that is to say to keep prices low and to delay profits in order to absorb all the market segments), why – I would say – should it not be extended to the mechanics sector, if no-one were to prevent that?
It already deals partly in tooling, for example. Not long ago, I happened to find on Amazon a spindle for a lathe I was looking for.

What is frightening and unpleasant is the typical market approach of Amazon. More specifically:
1) the identification of a market niche on the basis of data analysis;
2) a very strong commercial attack to destroy the competition and to impose its own predominance;
3) Then, only as a last resort, the establishment of its own pricing policies.

Were it to apply this to the mechanical components sector, then there would be a very high risk of it taking over companies that have focused their business on the sale (including online) of mechanical and electromechanical components. In other words: either deciding to acquire these companies, or to eliminate them at a competitive level in a short space of time.
Also because, if Amazon really opened up to the mechanical components segment, the market would undoubtedly benefit from it, because it would end up paying less for the majority of products added to an almost impeccable service. Which is exactly what happens in the other sectors it covers.

So everything is feasible, everything is possible and

those who will impact most negatively on us will be the large companies that sell catalogue-based tools, components and equipment.

What I hope for and think is that a move in this direction of Amazon would result in only slightly affecting companies such as MICROingranaggi, that is all those companies who are also highly specialised in the creation of micro series and of very specific and customised products for market niches.

I would like to know your point of view in this regard.

By Stefano Garavaglia

È il CEO di MICROingranaggi, nonché l'anima dell'azienda.
Per Stefano un imprenditore deve avere le tre C: Cuore, Cervello, Costanza.
Cuore inteso come passione per quello che fa, istinto e rispetto per il prossimo. Cervello inteso come visione, come capacità a non farsi influenzare da situazioni negative. Costanza perché un imprenditore non deve mai mollare.

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