Amazon is a monopoly in dozens of different markets because Jeff Bezos wants it to. In this criticism of Amazon, we analyze of Jeff Bezos business model threatens the very existence of free market.
Amazon is the second biggest corporation in the world and one of the only two companies to pass the $1 trillion mark. But during more than two decades of existence, Amazon has struggled to make any profit.
It has everything to do with the business model of Jeff Bezos, the CEO of Amazon. In his own words, Bezos believes in shareholder supremacy, which means everything is justified as long as the share value is growing.
Jeff Bezos pushed Amazon great lengths to claim this dominance. From undercutting competitors with predatory pricing, through forcing itself into their business, to vertically integrating into strategic markets across the business line, Amazon is on track to gradually take over every aspect of e-commerce and to control and decide what we shop and what is allowed to be sold.
The Hated One - The Amazon monopoly and the problem with Jeff Bezos' business model
2 comments:
"But during more than two decades of existence, Amazon has struggled to make any profit."
That's complete twaddle.
Amazon doesn't make a taxable profit because it reinvests everything it earns back into increasing the size of the company - which is then reflected in the share price.
Public companies only start 'making a profit' when they can't think of anything else to invest in.
Jeff Bezos brilliance was to keep finding new things to invest in that either vertically or horizontally integrated with the core business. He kept the investment curve going far longer than any other business you can name.
It says that in the video. What he also says is Amazon has become a monopoly and should be broken up.
Post a Comment