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Amazon Is In The Oil Business And It Proves No Industry Is Amazon Proof

Original Content Publication Date: 09/14/2018


Amazon has entered the oil industry with the release of its Amazon Basics Synthetic Motor Oil and with only 6 months on the market, Amazon's oil brand is already receiving positive reviews from customers. Amazon's entry into the motor oil industry proves there is no industry that Amazon cannot enter.

Key Points

  • Retail and business analysts have always reported Amazon's entry into any market to have a detrimental effect on already established brands and the same is expected now for the oil industry
  • Amazon strategically uses private labels to break into markets and grow within any industry by selling its private label products at a cheaper price than any other name brand
  • There is a lot of potential for Amazon to gain more control over global retail sales in the Automotive Industry

Discussion Questions

  1. Thinking as a customer, why would you buy Amazon’s product over other traditional brands? 
  2. What can companies do to make barriers against Amazon's entry into their industry?
  3. What would you suggest as the next move for traditional brands in the oil industry against Amazon's competition?


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