Some companies, when they see their market share threatened by new competitors, opt to buy them and pretend that nothing has happened. No matter what category they are, or what service area we are talking about, the biggest fish always eats the smallest, so Amazon bought the digital store Souq.com, and it’s not really that surprising.
The Middle East giant thus joins the aggressive expansion strategy that the US store has been carrying out for several months, which has led it to open new stores, explore other business areas, and even reach new Territories, such as Egypt, Saudi Arabia and the United Arab Emirates.
Curiously, it is in these countries that the concept of credit payment through plastic is not properly installed in the culture of the digital buyer, so local stores have developed their own system of prepaid cards. The same goes for home delivery, so Amazon and Souq have a fairly large task, in that and many other areas.
Cultural differences between consumers are a challenge for both companies. However everything seems to flow properly for the parties involved because, despite all of the above, they agreed to pay nearly USD 650 million – according to rumors – to complete all this operation.