Could Amazon be the Hidden Champion Among Internet Treasures?

What is a Hidden Champion? In Wikipedia we found the following definition: "Smaller but highly successful companies, concealed behind a curtain of inconspicuousness, invisibility and sometimes secrecy are called Hidden Champions. According to a definition by Hermann Simon, who claims to be the founder of this concept, a company must meet three criteria to be listed as a Hidden Champion: (i) Number one, two or three in the global market, or number one on its continent, determined by market share; (ii) Revenue below $4 billion; (iii) Low level of public awareness."

If we think about internet treasures, Amazon could be the Hidden Champion. Since 1998 Amazon is doing an incredible job of reinventing their business models and maintaining their core values. And they have done it without making noise, step by step, showing an amazing capacity to work with high volume and low margins. Amazon's competitors were always on the news, showing their new products and strategies, making noise -sometimes too much - but no one is surfing the transition to the digital era like Amazon.

The winds are favorable to Amazon. From books to video games, digital goods are revolutionizing how consumers are consuming content and spending their leisure time. Amazon understood perfectly this strategic movement and now is starting to see the fruits of their labours: margins are increasing and profits too. Amazon increased their EPS 25% in 2010 from 2009. Sales went from $24 billion in 2009 to $34 billion in 2010. In 2011 Amazon is looking to conquer the online video rental market to compete with Netflix and Apple. Can they do it? I am sure that they will get a good slice of the pie. Amazon will continue to be the Hidden Champion among internet treasures.

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