Will this person raise the average level of effectiveness of the group they’re entering?
Along what dimension might this person be a superstar?
We don’t need to build physical stores or stock those sotres with inventory, and our centralized distribution model has allowed us to build a business with over 2 billion in annualized sales but requiring just 220 million in ventory and 318 million in fixed assets.
Online selling (relative to traditional retailing) is a scale business characterized by high fixed costs and relatively low variable costs. This makes it difficult to be a medium-sized e-commerce company. With a long enough financing runway, Pets.com and living.com may have been able to acquire enough customers to achieve the needed scale. But when the capital markets closed the door on financing Internet companies, these companies simply had no choice but to close their doors.
Future:Real Estate Doesn’t Obey Moore’s Law
Industry growth and new customer adoption will be driven over the coming years by relentless improvements in the customer experience of online shopping. These improvements in customer experience will be driven by innovations made possible by dramatic increases in available bandwidth, disk space, and processing power, all of which are getting cheap fast.
After four years of single-minded focus on growth, and then just under two years spent almost exclusively on lowering costs, we reached a point where we could afford to balance growth and cost improvement, dedicating resources and staffed projects to both.
Three Pillars of customer experience:selection,convenience and relentlessly lowering prices.
People see that we are determined to offer both world-leading customer experience and the lowest possible prices, but to some this dual goal seems paradoxical if not downright quixotic.
Long-term thinking is both a requirement and an outcome of true ownership. Owners are different from tenants. I know of a couple who rented out their house, and the family who moved in nailed their Christmas tree to the hardwood floors instead of using a tree stand. Expedient, I suppose, and admittedly these were particularly bad tenants, but no owner would be so short-sighted. Similarly, many investors are effectively short-term tenants, turning their portfolios so quickly they are really just renting the stocks that they temporarily “own.”
Our ultimate financial measure, and the one we most want to drive over the long-term, is free cash flow per share. Why not focus first and foremost, as many do, on earnings, earnings per share or earnings growth? The simple answer is that earnings don’t directly translate into cash flows, and shares are worth only the present value of their future cash flows, not the present value of their future earnings.
Amazon.com’s free cash flow is driven primarily by increasing operating profit dollars and efficiently managing both working capital and capital expenditures. We work to increase operating profit by focusing on improving all aspects of the customer experience to grow sales and by maintaining a lean cost structure.
亚马逊的Free Cash Flow的提升来源：
7 Billion的销售，只有480 million的存货。
2. Fixed Assets 只有246 Million，4%的销售额。
没有片言片语说明业绩情况，只是说明了math-based decision 还是judgement-based decision.仍然不忘记教育投资人。
Math-based decisions command wide agreement, whereas judgment-based decisions are rightly debated and often controversial, at least until put into practice and demonstrated. Any institution unwilling to endure controversy must limit itself to decisions of the first type. In our view, doing so would not only limit controversy—it would also significantly limit innovation and long-term value creation.
还不辞劳苦提供了Mcgrill大学管理学院Henry Mintzberg教授等三人的一份31月的学术paper ”The Structure of ‘Unstructured’ Decision Processes”,该报告研究了25个Strategic Decision Process。
we couldn’t otherwise contemplate. It supports the failure and iteration required for invention, and it frees us to Long-term thinking levers our existing abilities and lets us do new things find a crowd there ahead of you. Long-term orientation interacts well with customer obsession. If we can identify pioneer in unexplored spaces. Seek instant gratification – or the elusive promise of it – and chances are you’ll a customer need and if we can further develop conviction that that need is meaningful and durable, our approach permits us to work patiently for multiple years to deliver a solution. “Working backwards” from customer needs business opportunities. The skills-forward approach says, “We are really good at X. What else can we do with can be contrasted with a “skills-forward” approach where existing skills and competencies are used to drive X?” That’s a useful and rewarding business approach. However, if used exclusively, the company employing it will never be driven to develop fresh skills. Eventually the existing skills will become outmoded. Working backwards from customer needs often demands that we acquire new competencies and exercise new muscles, never mind how uncomfortable and awkward-feeling those first steps might be.
Jeff最核心的思维：Long Term Run，关注Free Cash Flow指标，谋求长期回报，永远以客户体验为先：Vast Selection, Speed Delivery, Low Prices.
学习Amazon比较像的B2C，我倒是觉得易迅有那么点意思。当然易迅只做到了Speed Delivery，Low Prices，以及比较好的客户体验，他的Selection还是比较低的。