Shelves

Business

Amazon Shareholder Letter, 2005

3 ideas

Buy on Amazon
  1. Without data, judgment leads

    “Sometimes we have little or no historical data to guide us and proactive experimentation is impossible, impractical, or tantamount to a decision to proceed. Though data, analysis, and math play a role, the prime ingredient in these decisions is judgment.”

  2. Price math sees only the short term

    “We can estimate what a price reduction will do this week and this quarter. But we cannot numerically estimate the effect that consistently lowering prices will have on our business over five years or ten years or more.”

  3. Analysis and boldness, starting from customers

    “You can count on us to combine a strong quantitative and analytical culture with a willingness to make bold decisions. As we do so, we’ll start with the customer and work backwards.”

Save ideas and give them a thumbs up or down in the app