Sales Are Colossal, Shares Are Soaring. All Amazon Is Missing Is a Profit

"Amazon will sell many more cookie dropping machines than I will, but even if you buy from me instead of Amazon it will earn a commission on the sale and the shipping,” said Hyo Lee, the owner of Commercial Food. “Now you know why Amazon’s sales have gone from $34 billion in 2010 to $61 billion in 2012.”     
Still, she noted that Amazon was building dozens of warehouses across the country and hiring tens of thousands of employees for them. “It has all these fixed costs now,” she said. “I think they’ll have to start charging more for shipping.” 

Read more at:   http://www.nytimes.com/2013/10/22/technology/sales-are-colossal-shares-are-soaring-all-amazoncom-is-missing-is-a-profit.html?pagewanted=2&_r=1&

Albeit its stock is at record high, Amazon lost money in 2012, and analysts anticipated another loss when the company released its third-quarter results last week. Even though its incredibly soaring sales, the company is missing profits.

 

Thus, do you think that the model of putting down profits for the sake of growth will be able to pay off for the company in the next future? 

And, if not, what could be Amazon possible alternatives in shifting and innovating its business model?"

Taking a bite out of Apple

IT FEELS more like a rock concert than a press conference as the casually dressed chief executive takes to a darkened stage to unveil his firm’s sleek new smartphone to an adoring crowd. Yet this was not the launch of the new iPhone by Apple on September 10th, but of the Mi-3 handset by Xiaomi, a Chinese firm, in Beijing on September 5th. With its emphasis on snazzy design, glitzy launches and the cult-like fervour it inspires in its users, no wonder Xiaomi is often compared to its giant American rival, both by admirers and by critics who call it a copycat. Xiaomi’s boss, Lei Jun (pictured), even wears jeans and a black shirt, Steve Jobs-style. Is Xiaomi really China’s answer to Apple?

Xiaomi is a very interesting company, which is growing in China. 

Nevertheless, its business model has yet to prove its validity in the home market, therefore threats to Apple are still seen as weak. 

We would like to hear your opinion, so please make sure that at least one person of your group replies to the following questions here on the blog.

Compare Apple and Xiaomi strategies. 

1. How important do you think has the external environment been in pushing the two companies pursue their strategies?

2. Were the decisions taken by Xiaomi at the functional, business or corporate level?

Moreover, it would be nice to see some statistics in class, so it would be nice if each member uses vot.rs to see what the general audience thinks. 

Please go on vot.rs and enter the following codes:

For question 1: 38 96 43

For question 2: 46 34 30