Downsizing Indiana Operations

Munster IN, many of us may have never heard of it, but Amazon.com sure has. Last year they opened a small distribution facility that employed 50 people and expected to grow that to 100. Not anymore, Amazon.com recently announced it would be closing the facility by May 25, not for the obvious economic reasons, but to increase efficiency among their distribution channels. With two other Indiana based locations and a third on the way, outside of Indianapolis opening 2011, Amazon.com most likely bit off more than it could financial chew.

This is an interesting move considering Amazon.com's position within the Midwest has been traditionally very strong. An testament to their belief in their employees, all 50 have the option to relocate to another facility, will get 3 weeks severance pay after May 25, and receive aid and assistance in job searches. Beats the old adage of "Fire them on a Friday."

Collaborating with the Competition

After an uproar of debate over the Kindle 2 and its lack of compatibility with other digital readers, Amazon.com one ups the nay sayers. Now you can read your Kindle purchases on your IPhone and bookmark where you left off reading while it automatically syncs both devices.

An interesting move considering Apple and Amazon are becoming competitors with the introduction of Amazon.com's digital reading device Kindle 1 and Kindle 2. By tapping into the IPhone user market through its application, Amazon.com has exposed itself to an increased number of users who can easily download the app for free and enjoy their reading experience without a Kindle. In order for Amazon.com to continue to innovate their e-book experience, I feel this was a must do. As more users gravitate towards digital devices, this was a collaboration that benefited Amazon.com and Apple collectively.

Riding High

Amazon.com closed out Monday's trading at it's highest value in 6 months. The graphs below show Amazon.com's performance against the DJIA and their two leading competitors, Barnes & Noble and Ebay. While out performing them all, Amazon.com still has a way to go to reach its pinnacle stock price over a year ago of roughly $96.00 a share.

Jeff Bezos visits Kentucky

Jeff Bezos, CEO of Amazon.com, spent a week in the Lexington KY distribution center this past week. While many of us were on spring break getting tan or recharging, Jeff, one of the world's richest and very successful CEO's, decided to put in a week of hard work. He listened to employs while working on the warehouse floor and did jobs that no top-level CEO is expected to do. Jeff seems to be a quirky and innovative CEO that respects the people who work with him, as opposed to for him. I am interested to see how Jeff and the rest of the Amazon.com management steers the company as the economic crisis continues and their plans for the eventual up swing that could effect Amazon.com. Jeff did not take interviews or do publicity meetings with anyone, he simply did what any average worker at Amazon.com's distribution warehouse in KY does, he clocked in and went to work. Would you want to work for a company where the CEO takes a week and works along side of you to find out your thoughts on the company and its direction?

Other CEO's and top level management could take some lessons from Jeff. He has been named to the Barron's Top Chief's list along with JP Morgan Chase & Co.'s Jamie Dimon, beating the likes of Steve Jobs and other successful #1's. This is a list of the 30 most respected CEOs worldwide.