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    Why Amazon Should Be Split into 3 Separate Businesses

    Thu, 12/31/2009 - 10:40 EDT - Seeking Alpha
    • AMZN
    • Sean Park

    Sean Park submits:So my question is when will Amazon.com (AMZN) split its retail operations from its AWS platform business. I'd love to see these priced separately. Actually, truth be told, I suggest Amazon.com is actually three businesses:

    • the AWS computing platform
    • the Amazon retail and logistics platform
    • the Amazon.xxx online store(s)

    At the risk of being accused of adding only 'thin' value, I would suggest that these three businesses run and capitalized individually would be worth more than Amazon's current $60bn market cap. Indeed, Amazon.com is a perfect example of a firm that is natively adapted to the new optimal 'industrial stack': The 21st century industrial stack Earlier this year I suggested that AWS in particular could well be the totemic representative technology that inaugurates the sixth techno-economic paradigm: Just as Intel’s 4004 microprocessor was the catalyst for a wave of creative destruction in the 70s and 80s, will AWS prove the same for the 00s and 10s? Probably. We’re seeing it already. And it’s going to disrupt the hell out of the mastodons of industry across most sectors of the economy. Why? Because their cultures and leaders are entirely ill-equipped to face such a fundamental paradigm shift. They know how to play by the old rules. The strategic competitive advantages they built up over decades risk suddenly – poof! – to become obsolete. Complete Story »

    • Original article
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