mrgao Introduction "Amazon is Costco on steroids". These are words I once read in a comment on Seeking Alpha. In this article, we will consider an aspect not usually as covered as other parts of both companies. Remember, when I deal with very large companies, my approach is to research one aspect at a time, using what I call a fractal analysis method , with the assumption that every single part of the company has some statistical character as the whole business has. Fractals are, in fact, geometrical figures in which similar patterns recur at smaller scales, as in a snowflake. This time, we will start from my previous article " The Influence of Costco On Amazon Prime " and then move on to see how Amazon is expanding one of Costco’s strengths: unearned revenue. Costco and Amazon Prime In 2001, Jeff Bezos met Jim Sinegal , founder and then CEO of Costco (NASDAQ: COST ). Bezos learned the difference between retailers that work to figure how to charge more and those working to figure out how to charge less. Needless to say, Costco belongs to the second group. Jeff Bezos understood Costco’s focus on delivering value and after […]
How Amazon Expands Costco’s Business Model
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