Amazon Prime and the Sacrifice for Loyalty
Throughout the life of a firm, the company must choose what is important. Every big move is risky, but potentially rewarding. Amazon is currently residing in that zone. Amazon is battling huge retailers like Wal-Mart and succesful digital mammoths like Apple. As a result, it has to raise the bar. Amazon is doing just that with its Amazon Prime program designed to increase customer loyalty. Prime is crucial to the company’s vision. Analysts know that the company will lose hundreds of millions dollars a year initially, but over the long term, Amazon hopes to gain customer loyalty. In the food plant engineering industry, we admire this audacity. In order to get ahead companies must strive to ensure that customers return again and again.