Recently, Wall Street investors ignored Amazon’s (AMZ) latest lower earnings report and bid for $49B in new bonds. AMZ nibbled only $16B (at lower than projected interest rates) and bought Whole Foods for $13.7B. What will they do with the extra $2.3B? It is likely they’ll add to their already huge innovation budget. In 2016, AMZ spent $6.74B on fixed assets, with overall estimates for “innovative activities” exceeding $17B.
How does AMZ’s investment in innovation increase value for B2B buyers?
Following the news feed for AMZ’s daily innovation announcements is a full-time job. Most of these innovations indirectly increase value for Prime customers, while also bringing in new Prime customers and increasing retention. Then, there is a domino effect as these Primers take their AMZ shopping expectations to work, causing an accelerating increase in B2B sales.
Continue reading 76. Amazon Begs Your Innovative Response
Innovation is the process of creating something significantly new that replaces, at least to some degree, old ways. However, old ways are often overseen by experienced people and innovation will always be resisted by some groups. There are a few well-known types:
- Echo Chambers (also known as Groupthink)
- Highest Paid Person Opinions (HiPPOs)
- Zero Evidence But Really Arrogants (ZEBRAs)
You must be able to anticipate these hurdles or the current changes in the distribution channels will consume your company. Continue reading 75. Innovation Vs. Echo Chambers, HiPPOs and ZEBRAs
Recent data shows that 23% of consumers are digitally-obsessed buyers, and this number just keeps on growing. Even at work, millennials immediately compare their internal buying system to Amazon’s (AMZ) offerings. What are they finding? Some pretty important features including more choices, more product information, faster ordering, faster fulfillment, and increasingly often, lower prices.
Some corporate procurement departments have taken notice and set up a contract with AMZ-BIZ to complement their existing supply contracts. What are the results?
Continue reading 74. Millennials Want Their Corporate Amazon, So Does Big Government