4 ms·
The mechanism is the managers that take over at companies who focus on the short term bottom line (trimming support today, to juice profits tomorrow, to lose cr
by lamontcg 5y ago
The mechanism is the managers that take over at companies who focus on the short term bottom line (trimming support today, to juice profits tomorrow, to lose credibility years down the road after the bonuses have long landed in their bank account).
And the problem is that Amazon's growth profile (retail-side anyway) is going to be pretty constrained going forwards because they own too much of the available pie right now. So the result is that managers are going to have to look for other ways to trim costs to make numbers.
If you're starting from 0.001% of the retail market and trying to grow 10x it is much easier to do that just by having really good customer service.
- lupire 5y ago"short term bottom line" is a comically absurd way to describe Amazon, which has been growing consistently for 25 years.
- ClumsyPilot 5y agoThis comment is peak short-termism! It is comically absurd to refer to 25 years as a long time! There are companies that have been around for 300 years, in fact prior to rise of venture capital moat companies were multi-generational family business and you would consider how a decision would reflect on your children.
- lamontcg 5y agoThe professional management class in America no longer remotely behaves that way.
- lamontcg 5y agoI'm talking about the prospects for growth in the next 25 years, not the last 25 years.