Amazon Faces Profit Pressure: Honeymoon Over? - InformationWeek

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Amazon Faces Profit Pressure: Honeymoon Over?
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Charlie Babcock
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Charlie Babcock,
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4/28/2014 | 8:46:55 PM
Online retailing, on the ground delivery
Building out a decentralizewd, earth-bound material distribution system, versus building out online retail and cloud systems -- they represent different types of business management in the extreme. The distrubtion center, overnight delivery system and same day delivery in the big, green "Fresh" vans that I see on San Francisco streets, all of this has to be built up in a highly efficient manner by a company that's just gaining experience in the field. I don't know of another company that's trying to be both kinds of businesses. Amazon is trying to construct both for operation far into the future.
Lorna Garey
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Lorna Garey,
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4/28/2014 | 3:39:50 PM
Re: Those shareholder
SomeDude, I'm with you. I don't think the overall model is the problem, necessarily, as much as the current expectation that companies will consistently deliver double-digit margins. I wonder how Dell is doing ...
Thomas Claburn
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Thomas Claburn,
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4/28/2014 | 3:14:31 PM
Re: Don't Expect A Profit
I'd love to know whether Amazon is making any money on Amazon Fresh? Their delivery trucks are all over San Francisco, blocking traffic all too often. But Amazon avoid the fate of WebVan when it comes to the delivery business?
RobPreston
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RobPreston,
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4/28/2014 | 12:59:12 PM
Honeymoon
If Amazon's honeymoon is over, we should all be so lucky to have one that lasts so long. But people were saying its honeymoon was over after the dotcom bust of the early 2000s.
Charlie Babcock
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Charlie Babcock,
User Rank: Author
4/28/2014 | 11:44:59 AM
Do Googlers read balance sheets?
Is Google poring over Amazon.com's balance sheet? Google could lead in offering unique features, such as Google Maps, through its cloud services or by offering PaaS that matches the way Google builds things in house. But it instead has challenged Amazon Web Services for price leadership in the market.


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