alt Hacker NewsI think they did realize it and tried as hard as they could and still failed. I was a Sears salesperson in 2003 and 2004. The whole operation took itself very seriously and embraced the internet and technology. They just… failed. I’d love to know how they missed because everything was in their favor.
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Think of the kinds of people who vie for leadership roles at established companies like Sears was at the time. Those people aren't innovators and creators. They're management types, MBAs, bureaucrats.
And fair enough: When the ship is that big and there are that many people on board, you often don't want to "move fast and break things," because the downstream effects can be extreme. Now you've just broken a company that had been working for decades. You're incentivized to take small risks with high likelihoods of reward.
Of course, the problem is, at some point that becomes fatal. A balance can be struck, but it can be hard when the original driving force is long gone.
Those who tell stories, rule society. Amazon's story of starting in a garage selling books to selling millions of things was just more interesting than Sears, which had been around for so much longer.
Amazon also wasn't like Sears, they depended heavily on 3rd party sellers to built their initial catalog. Sears didn't have 3rd party sellers until much later on. Amazon just leveraged those 3rd party sellers to figure out what they should carry and sell as Amazon down the line.
Simple, the internet shifted power to the consumer and the Chinese.
Consumer: I can check prices at different stores in 1 minute
Chinese: why do business with the Sears agent in Hong Kong when I can sell directly to the West?
Rule numbero uno: there is no customer loyalty in Ba Sing Se!
Amazon does not make any money retailing either.
Amazon took their largest cost center, IT infrastructure, and made it a profit center (AWS). That is the part that makes money.