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I believe some of the concern with Amazon is how horizontal and diversified the company is. I'm not sure if any other company has ever gone so wide as to have e
by samdixon 6y ago
I believe some of the concern with Amazon is how horizontal and diversified the company is. I'm not sure if any other company has ever gone so wide as to have everything from technology to groceries.
The concern is how effectively a company like this could reinvest into their other verticals. Grocery stores are low margin. Cloud computing is one of Amazons highest profit sectors. Is it fair to smaller(smaller being relative in this case) grocers such as Meijer, Publix, or Kroger to compete against Whole Foods which is a company that can actively lose profit due to backing from other Amazon verticals such as AWS?
- Grimm1 6y agoYeah the closest thing Amazon reminds me of if: https://en.wikipedia.org/wiki/Vertical_integration https://en.wikipedia.org/wiki/Vertical_integration Though the parts of the "supply chain" are really different verticals they can use the revenue from to compete in their other verticals. The consequences are likely different but I haven't seen how it's bad yet at least against other large companies.