Amazon's eight outway (Shang) Tian Huining
Alliances from Barnes & Noble online bookstore alliance to the leader of General Electric, Jack Welch, here, have some tricks to help Amazon truly achieve profit. About Amazon's business model, almost no one has objection: this model does not work. Amazon has lost 14 billion in the case of $ 2.8 billion in 2000. In other words, Amazon is losing $ 1 per sale of $ 2. Amazon's plan has always been lucky to earn, grow rapidly, and ultimately achieve profitability with the maximization of sales. However, in today, Amazon, who has been carried out for six years, has announced the growth rate of sales to 30%, and the reduction rate reached 20% compared to the growth rate of 68% last year. At this growth rate, many financial analysts believe that Amazon commitment is almost impossible to achieve profit in the fourth fiscal quarter (the peak of sales per year). In fact, Amazon is best to fulfill the promise, otherwise the current Amazon's $ 10 stock will completely collapse, let Amazon's glory will always become yesterday yellow flowers. Amazon's natural will not discuss how to find out the way for yourself in public. Amazon's spokesman Bill Rili claimed: "We are not talking about possible or impossible things." But in discussion, experts can not be shy when they are concerned. So I have a lot of analysts and consultants from retail, finance, software, market, and other e-commerce fields. Experts believe that the problem is that Amazon's current plan seems to be too trivial. Indeed, Amazon has hundreds of millions of funds. Amazon recently implemented layoffs and closed the distribution center and customer service center. And Amazon is ensuring that the operation cost is achieved to achieve product sales profit. For example, according to Yan, Amazon recently convinced a manufacturer of a folding chair to supply packing products, so Amazon can make full use of their own mail delivery. "Weathered role" is too wonderful! But this is not a large investor is looking for a road to profit. Many analysts believe that if the stock price is again taken again, Amazon needs to take some bigger strategic actions. Of course, no one thinks that Amazon will evaporate. The worst case is nothing more than the value of Amazon, will gradually eroded over time due to the migration of time without reaching the right goal. Internet Strategy Consultation and Author Pitt Kean metaphor for Amazon "Weathered". There is another situation, Amazon's share price will fall to a low point, then a large company, it is very likely that a retail company will acquire Amazon. But now, most of the observers think that Amazon can be relieved in both aspects, and its value will still be great. These two aspects are: 29 million user foundations and Amazon have developed online systems for customers. In fact, most opinions believe that Amazon should streamline their own ambitions and focus on their own specialties - online customer service. So, what kind of choices are Amazon? Let us explore: go out: Crazy Alliance This is a way of strategic investors is seeking. This actually means that Amazon should work more similar to TOYSRUS.COM, namely Amazon, providing front-end online interface, while traditional retailers are responsible for the rear end of the business. Legg Mason's analyst is still considered that Amazon's model will eventually work, he said: "This strategic alliance has many meanings." Amazon has clearly expressed hope to consider more cooperative relations. But Sanford C. Bernstein analysts Fa Landes said that the problem is in the current environment, Amazon will not be like the TOYS 'R' US US US US US US US US US US US US US US US US US US US US US US US US US US US US US US US US US US US US US US US $ On the other hand, the Amazon's alliance will be in the same way to alliance with leading traditional companies, then choose the distribution of goods, and agree to the sale of the goods according to the sales of goods. In this way, Amazon can sell goods online and process user services.
In the case where the handling ability of a strong technical platform is matched with tens of millions of users, Amazon can share the Barnesand Noble.com, such as retailer, such as the Best Buy (current market), or selling books. Roland Berger Strategy Consulting Company's partner ARik Kimtez said: "Amazon online sales is very potential. Amazon can be a company specializing in providing online sales services for other companies. If Amazon has become a leader in various commodity retail fields Amazon will be very powerful, which will truly let Amazon's potential to play. "Out of the way: Abandon" Make the world's largest "target Amazon's registered trademark is not small to investors. Many analysts believe that Amazon has come to get rid of all-round combat mode, and Amazon is currently even doing the advertisement of woodworking tools, and everything else. Amazon boasted in the fourth quarter of 2000, 35% US consumers purchased goods from Amazon's electronic products, kitchen supplies, tools, hardware, toys, game stores. But Amazon really needs to sell everything? According to analysts, Amazon is currently not able to master enough detailed information to make them think about which product is the most potent. For example, 35% of users only buy a toy rather than a tool? This is just a guess. But you should have a most secure suggestion to Amazon, let Amazon find which product profit is the highest, which product users are likely to buy. Bernstein's Rands said: "I personally think that there is no significance of the department store that can buy all the goods." Out of the way 3: Can a user who have low profit margin open, have he heard that 80:20 rules? " This theory believes that retailers should identify the 20% of the 20% of the market for profits and markets. Taking Amazon as an example, this means that Amazon should stop the approach to 29 million users, and the difference is to treat users who have true meaning for them. This is actually an extension of Amazon's second way. Ke Han said: "If I am the CEO of Amazon, I will try to find out what the 20% of the users are, and then the 20% of the users will serve, kick the remaining 80%. "Outline 4: Investigating prices, Amazon users, but this is a more convenient strategic transfer. This will make Amazon's economic situation completely improve. The President and CEO of the Impiric Market Service Company in New York, David Saber believes that there is a considerable part of Amazon's users who will still choose Amazon without the discount. There are many online stores that have a cheaper price in Biama, but Amazon is still leading sheep in the network retail market. If Amazon has lost a user, the overall profit will increase. (See Amazon's outline 3). In addition, Amazon users may wish to pay additional services for certain specific services, such as selling difficult books or for sale in advance for the upcoming DVD. Sabau said: "When the" Capener "has not yet listed, I have already seen this film in my home. How cool? I am willing to pay more than one dollar." Out of the way 5: Digital distribution here has one The method can make Amazon thoroughly cut the cost and pain associated with management inventory and transportation: only the sale of goods that can be distributed in electronically. In the future broadband world, these items include books (of course, e-books), music, audio-visual products and software - those that can be transmitted with network only click on the mouse. Of course, Amazon is also doing this, but more importantly, Amazon should completely abandon the goods that need to be stored, packaged and distributed. Another more radical approach is: Jintach recommends that Amazon sells higher profitable goods, such as stock proxy and life insurance services. This doesn't need to worry about the problems generated in distribution. Obviously this will be a major turning fold in Amazon in its long-term strategy, not Amazon, can do tomorrow. But this idea has the simplicity of this indement worth trying.
