Wesfarmers CEO Richard Goyder has every right to be concerned about the impending arrival of the Online Gorilla Amazon to our shores. Amazon.com has generated a cumulative $315 billion in sales since 1997. Its cumulative profits during this period are less than $2 billion. Its lifetime profitability, then, is about a half of 1 per cent. This might be normal for a start-up, but if Amazon were a person, it would be old enough to vote, drink and buy cigarettes. Companies its age usually aim for steady and reliable profits. Amazon doesn't. It reported a small loss last quarter. All the company seems to care about is revenue, revenue, revenue. How will Australian businesses possibly compete? Critics are stomping their feet and wondering when - or if - CEO Jeff Bezos will shift tactics and attempt to turn a real profit. (Soure: Morgan Housel, Motley Fool)
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