Amazon has tripled its profit margin in 2018. Is this the year investors were waiting for? The year in which Amazon “turns on” the profit faucets? I argue (using the recent news on 1-day delivery) that we will see more reinvestment and continued scaling with thin margins.
Leave a CommentCategory: Operations
Tesla is making it harder to order the 35K Model 3 vehicles. I have argued that such a low price should not have pursued by closing showrooms, in the first place. Shutting showrooms for 35K cars makes it appear as if Tesla needs those less loyal, price-sensitive customers at the cost of diluting the high-service expectation that its top-line customers have.
Leave a CommentIt was not Amazon that killed Toys ‘R’ Us. This is evident from their debt data, and also by a comparison with Target, which was also collaborating with Amazon then. Private investors chortled Toys ‘R’ Us — without focus on e-commerce efficiency or on customers — sending it south, even as Amazon was hurtling north.
Leave a CommentBoeing and FAA controversy sheds light on the inspection and certification process.
Leave a CommentDreamliner delays have affected Boeing’s 737 plans with tragic consequences. FAA approach to safety compared to China Aviation.
Leave a CommentA post about Tesla’s decision to cut more than 3,000 jobs and scale back on showrooms. Tesla needs showrooms, but not for the often-quoted reason. I argue that after this decision, Tesla should focus on its most-valued customers by improving on their product service bundle.
Leave a CommentNYC and Amazon fall out — remarkable news politically, but very much along the framework we talked about in the blog. I also talk about how cities have become remarkably desirable. Bonus: trivia on Reservoir Dogs.
Leave a Comment