>> This is similar to the "just in time" method business is beginning to use for avoiding building large inventories. <<
This is not JIT. You see, the inventory has to exist somewhere, be it the middle man or at Amazon because books are not manufatured JIT, at least not yet.
This is contrast to, say, the automotive manufacturing industry, where components can be manufactured as needed.
So given that there's going to be a warehouse somewhere, no matter what, which one do you think is best: To have your own inventory, thus avoiding the middle man, or to have it elsewere, pay a middle man and ed up with prices 10% higher than Barnes&Noble?
I must insist, not having inventory is bad for Amazon.com. It used to be good, when they were a small firm, because it kept costs low, (as somebody else also pointed out), but this no longer applies.
Perhaps they could use their size and familiarity with technology to their advantage to implement JIT printing. I'd say the technology is here.
That would certainly justify a valuation of $25. Think about it: first JIT printer in the world..... |
