We attribute Amazon.com Inc.'s ongoing rapid retail revenue growth (even if slower recently) to its first-mover advantage in creating and sustaining customer expectations for ease of purchase and fast, free delivery for the fee-based Prime loyalty program, which has over 100 million paying members. While Amazon has been a catalyst for consumer mindset shifts, large retail competitors such as Wal-Mart and Target are demonstrating success in meeting consumers' higher expectations. First-mover advantage at Amazon Web Services (AWS) remains intact, offering access to raw computing and storage capacity to customers of all sizes. AWS has continued to spend in the billions of dollars annually to expand its service offerings, complement its infrastructure-as-a-service business, and further extend its competitive advantage. The operating
