Question

AWS is the main source of income of Amazon (> 50%), meanwhile Amazon is heavily investing those profits to enter new industries, making their new business is new competitors for their existing customers (such as Netflix, one of the largest AWS customer, now competing with AmazonPrimeVideo). Do you think its ethical and the right strategy for the company? Please share your analysis.

Answer 1

Yes, I think its ethical and right strategy for the Amazon to invest the profits in new industries.

Both profitability and growth are important and complusary

for a company to survive and remain enticing to investors and analysts. Gainfulness is surely, durable to a company's existence, but growth is critical to long-term regulation.   

Growth for a business is actually an expansion, making the company bigger, enhancing its market and ultimately making it more profitable.

Though the current gainfulness of Amazon may be good, opportunities for growth should always be explored, since they offer opportunities for greater overall profitability and maintains analysts and potential, or current, investors interested in the company.