The precise art of a low margin business

Amazon Book Warehouse

I found this great article that explains Amazons pricing strategy eloquently. It’s also the first time i’ve heard that Apple rotate their stock faster than Amazon do, which is an amazing feat for a manufacturing company. Meanwhile, it doesn’t mention Microsoft, but if you try to insert the characteristics of their business model into the picture presented, you can see why Amazon, Google and Apple have them in a head lock and are emptying the room of oxygen needed to grow. Enjoy:

http://www.eugenewei.com/blog/2012/11/28/amazon-and-margins

Leave a Reply

Your email address will not be published. Required fields are marked *