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  • techstrategy techstrategy Dec 3, 2012 6:52 PM Flag

    Cramer still likes this overvalued

    Cramer did the ultimate pump... "Amazon is 1% of global retail sales..." A classic lesson from Marketing 101: Not properly segmenting the addressable market opportunity... It's not surprising since Amazon lacks any truly coherent strategic focus and none of the analysts (and certainly pumper in Chief Jim Cramer) have ever challenged the strategic coherence and addressable market...

    Is it now going to dominate restaurant sales? Spa? Auto repair? Gasoline sales? Oh wait... GRPN is better positioned to serve certain of those categories... And, certain of those categories (gasoline retail) will never be meaningfully served by Amazon or Groupon...

    The reality is that Amazon's business model is more efficient for a small subset of retail sales. For most, it is an inferior proposition. The irony is the number of product/categories for which it is superior is declining over time, not increasing.

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