Part 1 of this Amazon business (AMZ) series touched on Grainger’s current profit woes. So, why have legacy channel players underrated AMZ for 20 years? In this second installment in the series, we take a look at the new lenses we need to better assess the threat of Amazon’s future business effects.
My favorite example of a channel player underestimating Amazon is Barnes and Noble (B&N). B&N unveiled a web site in 1999 that was going to crush what they referred to as “Amazon dot bomb,” according to Barron’s. But by April 27, 2017, the company had announced their fourth CEO in four years, and 645 stores were down 9% for 2016. Meanwhile, on May 8, 2017, Barron’s targeted AMZ shares to hit $1100 (+20%) in a year. Continue reading 63. Envisioning Amazon Business Effects by 2019, Part 2