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There's precisely two ways of increasing the profit: 1) raise the prices, or 2) reduce the costs. Amazon took the second route. They still can't automate every
by r3bl 7y ago
There's precisely two ways of increasing the profit: 1) raise the prices, or 2) reduce the costs.
Amazon took the second route. They still can't automate everything. If they could, they'd do so already. Workers are what keeps Amazon alive today, even if that might not be the case in the future.
- jkaplowitz 7y ago3) increase the volume, assuming already profitable (or decrease the volume if loss-making)
- hedora 7y ago4) Expand into horizontals/verticals 5) Financial engineering (e.g., open a finance / lending business) 6) Acquire competitors / complementary businesses that are also profitable. 7) Make leveraged investments using stakeholder capital (e.g., take on low interest debt, and invest in things with a higher expected return) 8) Regulatory capture (eliminate taxes, regulations, competitors — the latter two can boost the stock even if they have no actual impact on the business) I’m probably missing countless other ways businesses can increase shareholder earnings.