Last week, Jeff Bezos, CEO of Amazon , published its annual report to shareholders of the company letter.Bezos’s letter should be called on the companies to change the shape or thought in doing business in the current situation.
It should encourage companies to acquire the guidelines and pillars on the Amazon business is based. Bezos sacrifice profits this year to invest in customer loyalty, in compensation for their employees and new products.
All this, according to Jeff Bezos says, will involve a sacrifice of profits this year, but will the much stronger company in the long term.The obsession with short-term profits is what has helped produce an unhealthy and unsustainable situation that now afflicts the economy, according to Bezos.
The profit margins of companies, particularly in the US, being greater than ever in history, while salaries paid by enterprises are the lowest they have ever had, having achieved higher levels of unemployment since 1970.
Since wages paid by companies, in turn becomes income for other companies, many corporations are muddle through in the short term, but long term the situation could become untenable, since the consumer spends-saving in terms of what you earn. Amazon is an example of a company that does not put their short-term profits ahead of investments Long term, if that value in the company you win.
“The philosophy of Amazon is putting customers, employees and investing long-term value first.”
This way of thinking is what has brought in more than Once the short-term investors complained saying the company may-be make more money. Clear that long-term investors are very happy with the way business has Jeff Bezos, as the company stock has appreciated nearly 1,000% in the last decade, currently trading at $ 272, so the investment has been very profitable.
Amazon has managed to build one of the most dominant, durable and valuable Internet companies, while during the crisis of the “dotcom” Bezos saw numerous companies fall that focused on the short term. Instead, Amazon, thanks to its philosophy emerged stronger from that.
“Investing more in profits today will give us the opportunities of tomorrow. product development, customer loyalty and dedicated employees ”