Amazon: Is Profitability a Possibility?
Brett Dennis and
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Brett Dennis: Alfred University, United States
Stefan Nonnenmann: Alfred University, United States
Expert Journal of Business and Management, 2014, vol. 2, issue 1, 9-13
In today’s society, companies seem to all be following the same trend; growth in profitability at all cost. Higher profits, for the most part, leads to more investors and more potential financing. Amazon.com appears to be breaking that trend, however. Their strategy seems to be growth, but not in profits. We would like to look into how and why Amazon is growing at such a fast pace, while their profits are staying steady at a very low level. Is profitability a possibility for Amazon? We believe that a marginal increase in price could accomplish just that, with a minimal impact to consumers.
JEL-codes: M16 M21 (search for similar items in EconPapers)
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