"1. Amazon uses the most advanced technology so its productivity is much higher than the traditional retailers and its sales/employee is at least twice as much as its traditional retailer competitors. "
They have been using high tech since day one, and it is not helping. Technology doesn't help much when you make terrible business and personnel decisions.
"2. The goods Amazon sells -- electronics etc. -- have higher price tags than most of Wal-Mart's"
So AMZN is not price competitive?
"3. The costs of operation for Amazon can be substantially lower than Wal-Mart camp, who needs higher a lot of workers, buy land, construct/operate their stores, ... "
If they 'can' then why aren't they?? You are simply wrong on this. Good locations with low prices, along with good customer-facing people, draw the customer in. These are assets, not liabilities!! WMT has good book value; AMZN book value is negative; they have no net assets.
WMT has been growing like crazy for years, is highly profitable, has excellent, experienced management, and has survived many recessions. AMZN has none of these desirable atributes.
"In addition, Jeff B. and his employees are under extreme high pressure to produce -- increase sales and reduce costs -- this is the difference of death and life. "
So WMT management are not under pressure to produce results every day? The difference is WMT delivers results !! AMZN does not. AMZN does not offer delivery of results, whether standard or overnight <gg> AMZN does not offer ROE !!
Youlo, I still believe, as I have stated here before, that Amazon will be bought out for its debt with little or no value assigned to its stock. The withering AMZN share price is getting closer to making my prediction a reality.
Victor |
