Analysis by Bain & Company recently highlighted that, when it comes to investment in new technology, Amazon will outspend its average retail competitor by a factor of ten over the next five years. At their current rate of investment, that equates to every one of its ten closest retail competitors allocating an estimated $100 billion less than Amazon for information technology by 2023.
Why does this matter? Isn’t Amazon simply spending far more because its core business is delivered online?
While underpinning its dominant eCommerce platforms is clearly a factor for Amazon, such reasoning overlooks some crucial aspects of the retail landscape that are helping Amazon become even more dominant. Continue reading Why Investment in Technology is Crucial to eCommerce Competition