Amazon Case: Your Plan to Be Profitable Is Called Advertising
In recent years, Jeff Bezos and company have quietly put together a marketing platform that allows Amazon to make money from the enormous size of its audience. For more than two decades, Jeff Bezos - as is well known - has sacrificed profits for growth, persuading Wall Street that it was better for Amazon.com Inc. to invest money in the logistics that have turned his company into the Wal - Mart from the web. More recently, investors have found comfort in the company's profitable cloud services business, which has helped offset losses in e-commerce. However, over the past five years, Amazon's average profit margins have declined by about 1%. Now comes a business that could generate steady and profitable returns: it's called advertising. In recent years, Jeff Bezos and company have quietly put together a marketing platform that allows Amazon to make money from the huge size...