How Jeff Bezos Thinks Longer Term Than Anyone
Ask any ‘rational’ industry insider or McKinsey consultant where AmazonFresh should open next, and the answer is likely to be ‘anywhere but the UK’. Try Holland. Or Sweden? Australia? Anywhere that offers at least a remote chance of earning decent profit margins in the medium term. But Amazon founder Jeff Bezos isn’t short term rational, he’s long term rational. And so, of course, AmazonFresh is rolling out in the UK, in east and central London initially, right in the middle of the most competitive grocery market in the world. I posit there are two reasons why Bezos chose to expand in the UK next: 1) It makes UK-listed Ocado’s life tougher. 2) Less obvious but important—Bezos wants to rule the grocery delivery business globally. And if you want to win the globe, you’ve got to win the UK. He can win Atlanta or Brisbane or Paris by being first. But he can only win London by being the best. What he learns there will pay off everywhere else. (VIEW LINK) to read the full blog post.
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