Friday, March 12, 2010

Amazon -- Canadian Evil?

Amazon (AMZN) is in a cultural business battle in Canada. They have proposed a huge distribution facility which needs to be approved by the Federal Government. Amazon is big and will have a huge impact. The publishers have stayed officially quiet. Why annoy Amazon? The main Canadian competitor Chapters/Indigo which is also publicly traded on Toronto (IDG) has a virtual monopoly and has frequently been thought of as a Trojan Horse for Barnes & Noble (BKS).

The battle is faux. The cost in the industry relates around the physical nature of books. Paper is big heavy and expensive. Amazon may accelerate the creative destruction of anachronistic small book stores who cannot sustain an old school bricks and mortar business model.

The old school book sellers are not traditional supporters of the Steve Harper Conservatives. So think evil and do not be surprised by the probable outcome. If Amazon is denied in Canada what Canadian business will have trouble in the US of A.