Quote

To many book professionals, Amazon is a ruthless predator. The company claims to want a more literate world - and it came along when the book world was in distress, offering a vital new source of sales.

Amazon makes money differently from a conventional publisher. It is an infrastructure player.

I think for Amazon's customers, it offers a kind of addictive service - the ability to shop without leaving your house, the ability to read without going to a bookstore or a library.

As we have seen again and again, when Amazon doesn't get the economic conditions from suppliers that it seeks, it simply goes its own way. In the book business, that has meant publishing its own titles under the various Kindle imprints. Now it's making diapers.

There are lots of lessons to learn from Amazon. Never stop innovating or questioning the fundamentals of your business. Disrupt yourself before others do. Continually motivate employees so that they never get too complacent - see Yahoo, AOL and many other Internet companies for evidence of what happens when they do.

Amazon is such a big player in publishing, but a lot of authors feel this connection to their publishing house and their editors who helped them get their books out there, so their loyalties tend to go that way.

I've drunk Amazon's free Diet Coke. Nothing makes more sense to me than a company trying to make bookselling into a profitable business. I'm not anti-Amazon, and I'm not pro-publishers either. I'm pro-books.

Booksellers are tied to publishing - they need conventional publishing models to continue - but for those companies, that's not the case. Amazon is an infrastructure company; Apple sells hardware; Google is really an advertising company. You can't afford as a publisher to have those companies control your route to market.

The Internet rewards scale; by trading higher up-front costs for lower marginal cost, market leaders can invest in better technology and service. As a result, there is nothing online that is both great in quality and small in scale. Amazon wasn't originally a better bookstore than the small shops we mourn, but it is now.

Amazon thrived because it implemented the online bookstore idea better than any of its early rivals did, not because it was the only company to have the idea or the first company to have the idea. It continues to grow only because it keeps trying to improve on the details of the idea and the way it puts it into practise.