If you look at the names in the news, Amazon certainly comes to the forefront as one of the more intriguing names for a variety of reasons…The brand strength is certainly key, and the fact that when people go shopping, especially online, it’s pretty much the first place they go to for comparison shopping. So you can have potentially a captive consumer base, and that brand strength is something that one should look for in any equity investment.
They certainly have relied upon technology for their foundation business, which is online retailing. But…that use of technology will evolve, and they try to stay at the leading edge of it. And you see that most prominently in Amazon Web Services, where they have levered off of their technological expertise and actually offer a Web service product and suite of packages for all potential clients.
For any product or service, customers are looking for something that gives them some comfort, something they can trust. So if it’s a food, a beverage, a service, a company, a retail outlet, that name does matter. And you can see that in Amazon’s efforts to promote their brand. For example, Amazon Prime is often placed on the cardboard boxes they ship out to customers. And we would imagine that when they get their fleet of trucks and planes and drones out there, you will see Amazon prominently displayed on all of those transports.
Amazon.com, Inc. (AMZN) Heightens Focus on Profitability
October 15, 2015