http://www.nytimes.com/2015/11/19/t...ng-game-yielded-a-retail-juggernaut.html?_r=0
I thought this was an interesting article about Amazon. I've heard in the past that Amazon's shopping business really didn't generate much profit, but that could be changing. Patience may be paying off.
Maybe Amazon could be an example to other companies and investors about how you can look beyond the next quarterly profit. You can succeed by having a long-term vision and goal.
One area in which I think this could be particularly important right now is renewable energy.
I thought this was an interesting article about Amazon. I've heard in the past that Amazon's shopping business really didn't generate much profit, but that could be changing. Patience may be paying off.
Yet the disclosure of A.W.S.’s size has obscured a deeper change at Amazon. For years, observers have wondered if Amazon’s shopping business — you know, its main business — could ever really work. Investors gave Mr. Bezos enormous leeway to spend billions building out a distribution-center infrastructure, but it remained a semi-open question if the scale and pace of investments would ever pay off. Could this company ever make a whole lot of money selling so much for so little?
As we embark upon another holiday shopping season, the answer is becoming clear: Yes, Amazon can make money selling stuff. In the flood of rapturous reviews from stock analysts over the company’s earnings report last month, several noted that Amazon’s retail operations had reached a “critical scale” or an “inflection point.” They meant that Amazon’s enormous investments in infrastructure and logistics have begun to pay off. The company keeps capturing a larger slice of American and even international purchases. It keeps attracting more users to its Prime fast-shipping subscription program, and, albeit slowly, it is beginning to scratch out higher profits from shoppers.
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Why is Amazon so far ahead? It is difficult to resist marveling at the way Mr. Bezos has built his indomitable shopping machine, and the very real advantages in price and convenience that he has brought to America’s national pastime of buying stuff. What has been key to this rise, and missing from many of his competitors’ efforts, is patience. In a very old-fashioned manner, one that is far out of step with a corporate world in which milestones are measured every three months, Amazon has been willing to build its empire methodically and at great cost over almost two decades, despite skepticism from many sectors of the business world.
Now those investments are beginning to bear fruit. It’s happening in fulfillment, which is the business term for filling and shipping orders. Amazon has built more than 100 warehouses from which to package and ship goods, and it hasn’t really slowed its pace in establishing more. Because the warehouses speed up Amazon’s shipping, encouraging more shopping, the costs of these centers is becoming an ever-smaller fraction of Amazon’s operations.
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Maybe Amazon could be an example to other companies and investors about how you can look beyond the next quarterly profit. You can succeed by having a long-term vision and goal.
One area in which I think this could be particularly important right now is renewable energy.