5min snip

ANECDOTE

Amazon vs Alphabet

Adam Seessel initially believed Alphabet had a superior business model to Amazon due to its capital-light nature.
However, he revised his view, recognizing that Amazon's capital intensity creates a barrier to entry, making it difficult for competitors to dislodge them.
He cites Amazon's e-commerce network and AWS cloud infrastructure as examples of this, noting their significant economies of scale.
Seessel points out that Google Search, being less capital-intensive, is more vulnerable to disruption, unlike Amazon's entrenched e-commerce and cloud businesses.
This contrast highlights how capital intensity, while requiring reinvestment, can offer substantial competitive protection.

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