Anyone denying the shift toward preferred and trusted digital platforms might want to look at the numbers as seen here, and we are wise to consider the fact that this has implications for education as well.
Digital platforms are here and they are reshaping market share across industries. They are reshaping personal habits. They are reshaping how families and communities function. This is not new. We’ve been living in and experiencing these changes for decades, but the statistics above give us a glimpse into what can happen in education as well.
I realize this provokes mixed reactions. Some might not like it. Others might not want it to happen. Still others might be deeply concerned about it. Even others remain skeptics. I’ve experienced all of those at one point our another. However, we are in denial in if we think this shift is not reshaping education as well.
Others will look at the statistics above and point out that, while Amazon grew in shares, it is not the most profitable. In fact, it didn’t even turn a profit until 2016. Yet, I will point out that it did impact both market share and profit for some of the others in the chart as well as countless others. It actually generated more profit for storefronts who found a powerful platform in Amazon. It established its market influence. In addition, regardless of profits at the moment, it is reshaping the modern retail marketplace in ways that are noteworthy.
This trusted platform / storefront element is one of the more profitable parts of the Amazon enterprise. I wrote about this recently in an article entitled, “A Likely Storefront Future of Continuing Education.” I tried to stay modest in my speculations in the article, but the truth of the matter is that an Amazon approach to education at large is likely to emerge. We are not sure who or which organizations will take the lead, but it can and likely will happen. It may be underway and I just haven’t noticed the emerging dominance of certain platforms.
By the way, this doesn’t mean the end of face-to-face education anymore than Amazon’s success meant the need of all face-to-face storefronts, but it will have an impact, one that is potentially larger but certainly different from what most people expect. This is not a doomsday article for traditional education. It is a recognition that education and learning as we know it will be transformed by the trusted and extended services platform model.
This is about building a preferred and trusted platform. I stopped by a Best Buy recently in search of a last-minute addition to Christmas presents. When I asked about a niche product, you can probably guess what the person told me at the store. We don’t have that in this store, but you can go to our website and order it. The people at the store are constantly reinforcing that the place to really get what you want is online, and it was a fragmented customer experience. You are just taking your chances if you go to the store. My wife had a related experience when she went online to order something from Walmart that she could pick up in the store. When she arrived, they didn’t have it, even though the website indicated that all she had to do was go to the store to pick it up.
Amazon went a different direction. Order it from us (or one of our partners) and we will tell you when it will arrive. Before you order it, check out our community of customer reviews, compare prices across our products and those of other vendors who we welcome in our storefront, choose when and how you want it shipped…
Some K-12 and higher education leaders might look at that last number in the opening image and note that the answer is that we need to add an online element. Yet, while that might be important, this is not just about going online. Each of the companies in the list are online. It is just that Amazon, an almost entirely online storefront, had a 1910% growth while all but Walmart saw significant declines, and Amazon made itself a one-stop shop and destination point that extends from consumer goods to entertainment, photo storage to books in every modern format, cloud servers and storage to tracking digital subscriptions. There is something more significant at play here, and that something has enormous implications for education also. It is about the trusted and one-stop platform. People seem to like and want that.
In education, consider the examples of Coursera and Edx as MOOC providers. Both of these went the route of partnering with large, flagship, or elite institutions. You don’t find many small or niche higher education institutions even welcomed on their platform. Contrast that with Amazon who partners with even the smallest niche boutiques who can meet their standards, follow their policies, and deliver quality products on time. Notice the community built around Amazon that extends across providers and services, anticipating questions and needs, and then expanding the platform to address them.
The future is unclear but the impact is apparent to anyone who will take the took to study the trends. Some of the MOOC providers might pivot and try this. LinkedIn seems to be trying to do it. Blackboard is trying to do it through a B2B strategy as a provider of ever-expanding services for educational institutions, but it still does not prove to be a true and easy-to-work-with partner for many vendors (at least not from several direct personal experiences on that front). Plenty of others opted for more niche approaches that will likely be sustaining over the upcoming years. Those who are growing online are often doing so with incredibly narrow ways of thinking about education or training. Yet, I’m still waiting for those two or three preferred and trusted platforms to emerge. Perhaps they are already here and will show themselves as such. Maybe they will be an expanded aspects of an existing and widely trusted and used social platform. They could come from new startups. There is even a chance that they will come from the non-profit education space through a single leader or a strong consortium (but I’m skeptical at the moment). This might take a few years. This might take a decade or more. Regardless, it will happen.