India Contributes To Amazon’s 77% Profit Plunge: Why Company Will Still Continue To Invest Here

Seattle-based Amazon, known for its strategy of investing in the future, has reported a 77 percent plunge in profits to $197 million from $857 million a year ago in the second quarter. The sharp fall in profit has been attributed to the investments the company is making in faster growing economies like India and in video content, Reuters reported. It could lose up to $400 million in operating profit during the current quarter,  Reuters  reported.

Unlike China, e-commerce is immature in India with many parts of the country not being fully penetrated, says Sanchit Vir Gogia, Chief Futurist, Founder and CEO of Greyhound Knowledge Group, a strategy and transformation research, advisory and consulting group. “With consolidation happening in the Indian e-commerce arena, this is the time Amazon should invest more heavily here. The competition is going to get intense with the earlier confusion — caused by having too many players, has been whittled down with consolidations,” Gogia said.

There will be only three big players in the e-commerce space in the country, believes Gogia, viz. Alibaba via Paytm, Flipkart, and Amazon, though not in that order.

India will not be that easy for Amazon though. It may be leading in Cloud, but faces competition from IBM, Google and Microsoft who are getting more competitive in India. “Amazon will have to work hard on that front too to retain its lead,” Gogia said.

[FirstPost]

Copyright © 2017 Greyhound Knowledge Group. All rights reserved. You may share this research note using the options made available. Please don’t copy this research note (complete or parts) and distribute over the web and emails. Connect with us if you need clarifications.


Have a question on this or other technology and innovation topics? Wish to understand what this means for your business? Click here to engage with a Greyhound Research Analyst.

Like this insight? Sign up for our newsletter to get our latest insights.

Wish to read more such Insights That Inspire? Access scores of other Free, Freemium and Premium Insights from the menu above.


Analyst:

Sanchit Vir Gogia: Sanchit is the Chief Futurist, Founder & CEO of Greyhound Knowledge Group, a Global Strategy & Transformation Research, Advisory & Consulting Group. He also serves as Chief Analyst & CEO of Greyhound Research, a Global, Award-Winning, Independent Technology & Innovation Research, Advisory & Consulting firm. To read more about him, click here.


Note for IT Decision Makers – Join Our Exclusive Community! Greyhound Research values your opinion and invites IT Decision Makers and Business Leaders involved in IT projects to join our exclusive, invite-only Greyhound Golden Gate (GQube) Councils. If your project is exclusive and we have your permission, we will write a research note about you and share it with the larger community. Over and beyond, this also gives you access to some of our thought-leading research and analysts. Please write to us on  connect@greyhoundgroup.com and we’ll take it further from there!

Note for IT Vendors, Telecom Operators and Channel Partners – Did you see our Research Agenda? We have organised all of our insights in a way that allows you to better filter and read what works best for you. Please write to us on connect@greyhoundgroup.com and we’ll gladly share a copy of the research agenda with you.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s