The economist: be alert amazon abuse of dominant position

guide language: the latest issue of the economist magazine published titled “the amazon can walk far?” (How far can Amazon go? Cover, although amazon overturn a number of industries, and even changed people’s way of life, but it brings us convenience and at the same time, people also should be alert to an increasingly powerful amazon could be abused its dominant position.

the following for the full article:

20 years ago, when Jeff Bezos (Jeff Bezos) from the financial sector to resign later to Seattle, he rented a house with a garage. Before this, apple and hewlett-packard (HP), and many other technology giants are born out of the garage. Although bezos started with selling books, but his company named amazon, by the thousands of miles of rivers to reflect their own ambitions.

this week, the world’s leading e-commerce company launched its first smartphone. But in amazon’s view, it is not the main functions of communication equipment, it is a original shopping platform, a way of collecting user data, you can recommend more in line with the requirements of product for the user.

this smart phone has the distinct characteristics of amazon. It is always in the constantly expanding its business: if you can distribute books and washing machines, mobile phone why can’t we do? It has in the real world and the digital space alternate between jumping ability: amazon has the world’s most enviable physical distribution system, but also to the cloud computing, e-books, streaming video and music downloads area expansion. Compared to the immediate interests, its more important long-term market share.

it is believed that the amazon too detailed understanding of the user, and even a little creepy. So far, it’s greed for data for users is a kind of help, but with the expansion of it and the increase of the strength of the company may go too far, can’t turn back.

innovation spirit

now, amazon was more respect, rather than fear. Many things now has been taken for granted, are bezos first launched. In the browser enter credit card number once considered crazy, until amazon proved the convenience and security of the network shopping. Once people buy the books, they will also try to buy other things. Today, global e-commerce market scale has as much as $1.5 trillion.

it has also created a user comment on amazon model. From the beginning of creation, amazon will allow buyers to ratings and reviews books. This still despised by some professional book reviewers, and some of the excessive praise to the five-star rating and may come from the author’s relatives. But overall, it can be for the buyers to provide some valuable Suggestions. Today, from the application to the hotel to the stockings, can accept user’s evaluation on the Internet. No user evaluation of retail website, always give a person feel less something.

in addition, it also overturns many industries. The book first. Amazon has changed the publishing industry twice, the first is through the network bookstore convenient people buy books, the second is through the e-book for people to read at any time. Before the 2007 amazon launched the Kindle, e-books is just a small equipment. Kindle is very easy to use, can use at any time, and can immediately to download books to the device, without the aid of the PC.

amazon also explore the new cloud computing model. In 2006, it began renting computing resources in accordance with the time. This mode of “to the rent act as purchasing agency” greatly reduces the cost and complexity of entrepreneurship. Amazon’s cloud computing services since then has been adopted by many startups, some of them even spawned a new industry, including Netflix (440.18, 1.21, 0.27%), sets, Pinterest, services, and reality.

no innovation, apple apparently more widely known, but amazon’s influence on the digital world as apple. And it always continue to explore. Amazon is not limited to a single business, but keep trying different industries, from Internet search to the robot, from film to television production, is everything.

in fact, if you are optimistic enough, may even think that amazon will “long-term perspective” back to the world of capitalism. In today’s common value quarterly earnings and stock repurchase program of Wall Street, amazon has made it clear to the shareholders: when facing short-term profits and investment opportunities to choose one proposition, it will choose the latter. When other technology giants in the accumulation of cash, amazon is still trying to invest in innovation. Investors seem to welcome the: amazon’s p/e ratio is more than 3500 times. By shares as a major means of salary payment, it is the interests of executives and shareholders together: the highest executive base salary is only $175000.

criticism remains

the problem is that the praise is the fall, amazon is no exception. The company has often been accused of unfair competition, poor working conditions and tax avoidance and bullying. Amazon said that the value of the us warehouse salary more than 30% higher than a big retailers. In respect of taxation, the situation may be a little tricky. Amazon is so low, tax and profit because it is not high, but also in amazon through legal way to transfer profits to the low-tax countries.

to amazon for years against e-commerce enterprises, sales tax, but has recently changed the attitude, the collecting sales tax, more and more in the U.S. states.

but some paradoxically, amazon’s most worrying of all is the long-term outlook. To work with a company even the shareholders don’t want to make money competition, difficulty cans be imagined. Its large scale and at a loss, to give potential competitors created huge barriers to entry. But the trend won’t last forever. People worry, amazon just waiting to exit the market gradually, and then to increase the price.

if that happens, regulators should have a strong intervention. This will give alibaba (rolling information) and other companies with opportunities, and investors may throw away the remote amazon because earnings. But consumers will benefit, again the vibrant entrepreneurial company in bezos gradually penetrated into every aspect of our lives, it has become the norm. (dinghong)

source: sina science and technology