That leaves us with an important question: should Amazon.com Inc (NASDAQ: AMZN) do the same?
Former Amazon executive says it totally should
According to Brittain Ladd – business and supply chain expert and a former Amazon executive, the tech behemoth could certainly reclaim its magic if it chooses to walk in the footsteps of its Chinese rival.
Interestingly, Ladd recommended that Amazon splits into separate units originally in 2018. At the time, neither executives nor the Wall Street saw it as a viable option. On Tuesday, though, he wrote on his personal blog:
Beginning in 2021, executives at Amazon reached out to me and asked whether or not Amazon should split up. I replied that they should. I encourage Jassy to make this a priority.
Versus its year-to-date high, Amazon stock is down 15% at writing.
Ladd shares units that Amazon could be split into
Higher shipping costs, an unprofitable Alexa unit, and declining sales that no longer spare even the Amazon Web Services business were among reasons cited for the proposed split. Ladd added:
Alibaba provides Amazon CEO Andy Jassy with an opening for broaching the subject of splitting up with his S-team. In order for Amazon to disrupt other industries, it should first disrupt itself by breaking up.
The business consultant who said he wasn’t concerned about the Amazon stock price on a recent Invezz podcast suggests that Amazon be split into the following businesses:
Physical retail and technology
Media and entertainment
Cloud and technology
Robotics and automation
Healthcare and pharmacy
Banking and finance
The post Alibaba split into 6 units: should Amazon take note? appeared first on Invezz.