Second order thinking also applies to the public investor side. Amazon acquired Kiva systems for a price that didn't make sense. To make Kiva exclusive to Amazon would destroy ~50% of revenue. If they kept non-amzn customers it was cheaper to remain a customer not an owner. The answer to this strategic conundrum was Amazon was planning a…
Second order thinking also applies to the public investor side. Amazon acquired Kiva systems for a price that didn't make sense. To make Kiva exclusive to Amazon would destroy ~50% of revenue. If they kept non-amzn customers it was cheaper to remain a customer not an owner. The answer to this strategic conundrum was Amazon was planning a massive expansion of fulfillment centers that would more than justify the acquisition price.
Second order thinking also applies to the public investor side. Amazon acquired Kiva systems for a price that didn't make sense. To make Kiva exclusive to Amazon would destroy ~50% of revenue. If they kept non-amzn customers it was cheaper to remain a customer not an owner. The answer to this strategic conundrum was Amazon was planning a massive expansion of fulfillment centers that would more than justify the acquisition price.