The "Big Mac" of the electric business

GF Fund Index Investment series of five

This year, the impact of domestic electricity dealers on traditional retailing has been overwhelming. "Double 11" hit the tens of billions of cakes just finished digestion, "double 12" of the war drums again. When the national consumer in this sigh unceasingly, but the other side of the ocean, the world's largest network retailer-Amazon, has long been the electric business marketing myth interpretation incisively. Its growth rate of more than 30% a year, the world's largest offline retail giant Wal-Mart moved to the panic, it once let the famous chain bookstore borders nearly bankrupt, it is more than most of the electric dealers imitated, but never been surpassed.

Looking back at the history of Amazon, it was originally a book-selling site, but by the end of 2000, customers have reached more than 160 countries and regions, with sales of 8 billion U.S. dollars, the world's largest sales network sellers. The rise of the Amazon really put the traditional electric business industry forced by the dilemma. Borders, a well-known American chain-store, found it impossible to rival Amazon in the book category, almost bankrupt in early 2011, while Best Buy watched Amazon eat away at its markets through cheap products, forcing it to shrink the size of its stores; and retail giant Wal-Mart, under pressure from Amazon, The same store fell 9 consecutive quarters of sales. They are lucky to have more than 30 companies bought by Amazon in the past more than 10 years.

At this point, in the eyes of most people, Amazon is a typical business E-commerce company, however, this is not the whole truth. As analysts say, the real reason Amazon is subverting the traditional electric-commerce industry is that it hides a very innovative heart under its business model.

There are countless examples of Amazon's innovations. Let's talk a little bit about its iconic events: cloud computing. It is understood that Amazon's foray into cloud computing business is much earlier than Google. The so-called "Hotta", the business has been raised by Wall Street questioned, and led to a fall in stocks. Five years later, cloud computing became one of Amazon's most profitable businesses. Now, as major technology companies look to the future of cloud computing, Amazon's 2010-year cloud computing business has earned more than $500 million trillion, with 400,000 corporate clients, including the New York Times and the Nasdaq stock Exchange.

The sagacity of Amazon's vision makes it far beyond the definition of only the electric business. Less than 20, Amazon developed into a "power dealers, retailers, digital publishers, logistics companies, technology companies, hardware manufacturers," and other multiple identities of the internet giants. There are even people who say that living in the United States today can almost only deal with a company in the Amazon. In that case, what traditional retailers or electric dealers can do to reach this performance?

Many of its achievements have made Amazon known as the "God-like Enterprise" in the field of electric commerce, and even in the dotcom bust of 2001, Buffett, the biggest creditor of the Amazon, has not challenged its potential. Bahon has publicly threatened: "I only pay for three things online: The Wall Street Journal (blogs, Weibo), the electronic version, the online bridge and the Amazon.com books, I'm sure they're doing the right thing." ”

Buffett did not see the wrong, in this crisis, the Amazon rose up straight. In the fourth quarter of 2002, Amazon's net profit was about 5 million dollars, and in 2004 it grew to more than 300 million dollars. Then, Amazon's cash-for-money momentum is out of hand. During the 2008 financial crisis, Amazon's share price bucked the trend and net profit increased sharply. July 27, 2011, Amazon shares rose 6.29%, the market value of 100 billion yuan, become after Google, the second largest market capitalisation of billions of dollars of internet companies. Amazon's share price has risen against the backdrop of weak global growth this year, with its share price soaring to $226.47 by November 13 at $175 a year earlier.

Nowadays, E-commerce is booming, countless electric companies are trying to replicate the Amazon model, but many can only learn its table, but can not learn its quality. But that's different for investors, and it's easy to invest in the Nasdaq 100 Index to share Amazon's huge bonuses without much effort. As a leading new economy (310358, the Fund bar), new technology, the development of business models to the index, Amazon, Apple, Microsoft, Google, Starbucks and other new technologies, new business model enterprises are included. In addition, the market believes that, in the short term, the introduction of the United States QE4, indicating that the Fed has been first to prevent the end of the "fiscal cliff" triggered by the volatility of government bond yields, and to some extent to the market new liquidity, which will undoubtedly be good for the NA. At this point, investors may wish to borrow the Daoguang Nasdaq 100 Index to share the never-ending dividend of the era innovation pioneer.