World Wide Jungle of Amazon

Amazon  
Jungle or Jingle?

Jeff Bezos looks to the future

Amazon's goal is to become the most customer-centric operation in the world.  Jeff Bezos, Amazon CEO, has created one of the most powerful distribution network in the world.  Amazon has innovated a concise process that brings products direct to consumers, cheaper, faster, and more efficient than the competition.  While we watch the companies stock price rise and product distribution increase, Amazon is now answering a difficult question to its stock holders, "Where are the profits?"  Bezos believes, "If you build it, they will come".  Therefore the profits are built into a seven year time line.  Products available through Amazon are fiercely price competitive.  The consumers are flocking to the site and buying into the Bezo's plan.

This is why Amazon will soar in the smartphone market   BY TERO KUITTINEN ON DEC 17, 2013

According to Consumer Intelligence Research Partners quoted in the article clipped above, spending habits are more important than profit margins.  The Kindle Fire, as shared in the study, is selling at a zero profit margin or even below because the consumers with the tablet spend close to $449 more annually with the Kindle in hand.  Many are anticipating Amazon's Kindle making its way into the smartphone market and potentially bullying out the competition as Amazon will be at the finger tips of the consumer at any given time.

Can Amazon Survive? Aug 30, 2000

"The stock is up 21% year to date" (Trainer, Forbes,10/29/2013)

Amazon Has Staggering Growth Expectations Priced Into The Stock    BY David Trainer, Contributor 10/29/2013

They have a healthy amount of products available to the consumer which include: Books, movies-downloadable and pay per view, electronics, home and garden, toys, clothing, etc.  Amazon is attempting to take control of the digital marketplace as compared to Walmart taking control of the (real estate) retail market.  The finite difference between Walmart and Amazon is overhead.  Walmart has to employ, pay, insure, and is taxed more than Amazon because the distribution centers drop the product at the door step of the consumer instead of forcing the consumer to come to them.

From memory, when Amazon began it was a basically a book and CD online store.  That is how most people remember this soon-to-be giant entering the market place and creating a digital space for CD's downloadable books, and hard book sales.  It wasn't long before retail giants with real estate began to close their doors because the digital space was the new way to read. Thus, the giant emerged.  With innovative shipping concepts and expediting delivering methods that bring the product to the consumer potentially even before they order it, the competitors are baffled with how to continue to be competitive.  The real question to ask is, what's next Amazon?

“ The most fertile soil does not necessarily produce the most abundant harvest. It is the use we make of our faculties which renders them valuable. ”

— Thomas W. Higginson