tag:blogger.com,1999:blog-4503292949532760618.post1006618509159838739..comments2024-03-28T02:31:38.608-07:00Comments on DSHR's Blog: Two Brief UpdatesDavid.http://www.blogger.com/profile/14498131502038331594noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-4503292949532760618.post-30793434261006796272014-10-24T07:29:00.712-07:002014-10-24T07:29:00.712-07:00Justin Fox at the Harvard Business Review has an i...Justin Fox at the Harvard Business Review has an <a href="http://blogs.hbr.org/2014/10/at-amazon-its-all-about-cash-flow/" rel="nofollow">important post on Amazon's business model</a> and its potential vulnerability. The key is:<br /><br />"Actually, though, it isn’t inventory management that distinguishes Amazon from Walmart and Costco. Walmart has an “inventory velocity” similar to Amazon’s while Costco, with its limited selection, turns its inventory substantially faster. Walmart and Costco also both get paid by customers more quickly than Amazon does. Where Amazon stands out is how excruciatingly long it takes it to pay its suppliers — 95.8 days on average last year, according to Morningstar, compared with 30.1 for Costco and 38.5 for Walmart."<br /><br />Suppliers may not put up with that indefinitely. This behavior reinforces the case <a href="http://www.nytimes.com/2014/10/20/opinion/paul-krugman-amazons-monopsony-is-not-ok.html" rel="nofollow">Paul Krugman</a> is making that Amazon is abusing its power over its suppliers.David.https://www.blogger.com/profile/14498131502038331594noreply@blogger.comtag:blogger.com,1999:blog-4503292949532760618.post-69607770644231170602014-10-21T09:26:53.783-07:002014-10-21T09:26:53.783-07:00And Paul Krugman weighs in on the same side.And <a href="http://www.nytimes.com/2014/10/20/opinion/paul-krugman-amazons-monopsony-is-not-ok.html" rel="nofollow">Paul Krugman</a> weighs in on the same side.David.https://www.blogger.com/profile/14498131502038331594noreply@blogger.comtag:blogger.com,1999:blog-4503292949532760618.post-83378843548745634232014-10-18T08:29:43.792-07:002014-10-18T08:29:43.792-07:00Matt Stoller argues for the use of anti-trust enfo...Matt Stoller argues for the use of anti-trust enforcement to <a href="http://www.nakedcapitalism.com/2014/10/matt-stoller-need-break-amazon.html" rel="nofollow">break Amazon up</a>.David.https://www.blogger.com/profile/14498131502038331594noreply@blogger.com