Tuesday 25 June 2013

The Amazon Economy - a checklist for NAMs

See this FT article on how Amazon is impacting key aspects of online and offline retailing... The FT offers links to in-depth treatment covering each of the following:

  1. From warehouse to powerhouse (Analysis: a back office infrastructure provider)
  2. How Amazon changed ecommerce (Interactive: simplifies shipping, handling and payments for small retailers)
  3. The Bezos doctrine of ruthless pragmatism (Corporate culture: a modus operandi that is pragmatic, frugal and data-driven)
  4. Amazon finds upside to sales tax payment (Delivery: paying local taxes a stepping-stone to building more warehouses for same-day delivery)
  5. How a warehouse changed a town (Employment: creating thousands of UK jobs, at a price)
  6. Amazon plays catch-up in digital media: (Competition: As books, music and movies have shifted from physical to digital, Amazon has achieved mixed results in defending its revenues from them..)

A must-read for NAMs: If you really want/need to understand the Amazon business model, links to each of the above six articles are available here.

Understanding Amazon means gaining an insight into how your role will play out in the future, because of, or in spite of, the Big A… 

P.S. Market valuation:  If you must go all the way, see the Amazon valuation calculator, a discounted cash flow model that helps illustrate how variations in key assumptions can change Amazon’s potential market value here 

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