I’m going to stop here now I think because any more discussion from me on this subject will simply end up going round in circles. I don’t see how that is going to help anyone or further the discussion.
At the end of the day, as I’m sure you will agree, I am entitled to hold the opinions I do, regardless of whether people choose to believe in them or not. I’m not asking people to agree with me.
From browsing some of the articles on this subject, I came across this comment from someone which, in my opinion pretty much sums it all up in a nutshell:
What is missing in this article is the financial straits Amazon is in. Amazon’s business strategy is a very long term sustainable growth which is reflected in the crazy P/E ratio of 3000 (Apple is only 10). For their stock to be fully realized and their business model matured, they would have have to increase their profit 300 times.
This creates immense tension because even though they have a diversified business, they still make most of their money from books. The whole US book/publishing business has slightly contracted over the years. So Amazon must kill off their competitors to survive, and to survive they have to use predatory pricing. Once they kill off their competitors they have to raise their prices to finally satisfy their investors. This is this their intrinsic business model.
This is not necessarily good for book lovers.
Source:
http://bits.blogs.nytimes.com/2013/0...azon/?src=recg
As a book lover, I couldn’t agree more.