It’s the holidays. This is the time that stores expect to make money. Christmas, Hanukkah, and all the holidays are a gold mine for retailers, who often make 15% of their sales this week alone.
When people aren’t shopping, they’re watching TV and learning about the financial crisis around the world. The automakers are complaining about the credit markets. The retailers are complaining about the housing market. The shoppers are worried about the economy. But there is one company that is not complaining about anything.
Amazon.com posted record-breaking sales, and is having its best holiday season ever. How is this possible? When nearly every other company is losing money, and the whole US economy is going straight down, how is it possible that one company can do better than ever? It’s because Amazon.com is committed to finding new ways of making money.
One driver of Amazon’s success is the trend of online shopping. We all know it’s 1,000 times more convenient, faster, easier and cheaper to just buy something online than to actually go out and buy it. And that’s why online shopping is growing at double-digit rates every year, while shopping in stores is going down. So Amazon has positioned itself to ride the trend that makes it easy to succeed.
Another powerful driver for Amazon is in the innovation. From the Kindle to the ever increasing range of goods that it sells, Amazon is always finding new ways of making money. It started as a bookstore. Now, some of the biggest sellers are gaming consoles. If you consider the fact that a gaming console that costs $300 is going to make the company a lot more money than just a book, it’s easy to see how Amazon sales and profits continue to grow.
It’s easy to see their big differences between the average American store and Amazon.com. And, it’s interesting to think about the difference is in strategy as well. What if every company in America used innovation like Amazon does? What would that do for the US economy?
Business Strategy, Internet, Online Investing AI, Success, US Economy
Amazon.com, christmas, holidays, online shopping, shopping, US Economy