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Why can’t Amazon make a profit?

May 27, 2013 1 comment

Why can’t Amazon make a profit? The answer is, they choose not to. Now to some extent this defies logic on several levels. First, they are a publicly traded for profit corporation. Second, you would think the stockholders would demand it. Yet, Amazon has been one of Wall Street’s darlings in the past decade. Amazon’s stock price jumped 234 percent in the past five years alone, giving the company a valuation of around $120 billion.

In those five years, Amazon’s sales have tripled to more than $60 billion a year, while its profits stayed remarkably flat. The reason for Amazon’s stagnant profit is its founder’s notorious commitment to long term growth. Jeff Bezos, who founded Amazon in 1994 and has lead the company ever since, has a track record of investing everything his company earns right back into it. Defending his investment strategy in his latest letter to shareholders, Bezos wrote:

  “Proactively delighting customers earns trust, which earns more business from those customers, even in new business arenas.”

This way, Amazon became the largest online retailer in the world and in the same way the company is now striving to become a dominant force in the distribution of digital media.  So far, investors seem to believe in Amazon’s long term success, but some day the company is going to have to proof it can turn a sizeable profit.

It is as Bezos recently noted:

In the short run, the market is a voting machine but in the long run, it is a weighing machine. We’re always working to build a heavier company.

As a nonprofit executive, what should you know about WebRTC?

April 27, 2013 3 comments
Ray Wang

Ray Wang at Constellation Research

Imagine holding video conferences with your volunteers across any device. That is bold and a game changer.

WebRTC is an emerging standard that enables real-time voice, video and data sharing in a Web browser without the need for browser plugins. Potentially billions of devices supporting a browser – PCs, laptops, smartphones, tablets and a host of new devices – from a variety of manufacturers will be real-time communications-enabled. Whereas browsers have typically interacted only with one or more Web servers, WebRTC allows browsers to exchange media and data directly and in a secure manner.

This is big. Check out the detail from my friend Ray Wang at Constellation Research. More here: Ten Things CIOs Should Know about WebRTC | Constellation Research Inc..

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