Plot vs Theme

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I think we all understand what is meant by the plot of a novel.  It is the story line; the summary of what happens.  The theme is the message that the author is trying to get the reader to think about.  It is the philosophical/theological/social/psychological message of the novel.  The theme may not be very clear; it may be quite subtle or implied, because the author wants to present the reader with a puzzle: something important to consider.

It is probably fair to say that every novel has a plot, but not every novel has a theme.  For example, my novel, The Iranian Scorpion, is a thriller, and as such, it has a plot, but I didn’t intend it to have a theme.  I suppose, considering the novel retrospectively, one might say that its theme is the near impossibility of banning addictive drugs such as heroin, but I didn’t intend to write the novel to make that point.

Consider To Kill a Mockingbird, one of the great novels of the 2oth century.  The plot is quite complex.  It involves two young children, Scout and Jem, who live with their widowed father, a lawyer, in a small Alabama town in the 1930’s.  The father, Atticus, is appointed by a judge to defend a black man who is accused of raping a white woman.  In the course of the trial, Atticus establishes that the white woman and her father are lying.  Nonetheless, the black man, Tom Robinson, is convicted by the jury.  Tom is killed in escaping from jail.  What follows is an attack by Bob Ewell, the accused’s father, on the children at night.  Boo, an elusive and mysterious neighbour, intervenes.  Bob Ewell is thought to have fallen on his own knife and died.  The plot itself has elements of uncertainty: the evidence presented at trial, the attack on the children, the motivation of Boo.

The overriding theme of the novel is the racial prejudice which existed in the American South in the ’30’s.  But there is also the idealistic courage of Atticus and his children in the face of prejudice.  In addition, there are issues around social class and gender which are touched on.

I think it is fair to say that the plot, while it reflects some of the author, Harper Lee’s, childhood experiences, is constructed so as to develop the themes for the reader.  Harper Lee took two and a half years to complete the novel, and during that time, she became so frustrated that at one point she threw the manuscript out a window into the snow.  (Her agent made her retrieve it.)  In my view, To Kill a Mockingbird is the best example of compelling plot and themes beautifully integrated.

A lesser example would be my novel, Sable Shadow and The Presence, which has as its themes the overriding importance of identity for us as human beings.  Identity is who, why and what we are.  It is critical in determining how happy we are in the life we lead, and our identity can be changed under certain circumstances.  The plot is the life of a bright, but introverted male character who grows and develops into a ‘great success’, only to see his success evaporate, and having to build a new identity.

Mark Zuckerberg on reading

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James Walton has an article in yesterday’s Daily Telegraph which is entitled: ‘Reading Books is not a duty, Mr Zuckerberg’.

 

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Walton begins by saying:

“Books,” according to the chick-lit author and  former Member of Parliament Louise Mensch, “were what we used to do before the internet.”  Now, though, it seems that these ancient artefacts may be making a comeback.  No less a figure than Mark Zuckerberg, Facebook’s founder, has declared 2015 “A Year of Books” and is inviting his website users to join him in his New Year’s resolution of reading and discussing one a fortnight.  His first choice is Moisés Naim’s The End of Power, which explores the growing power of ‘anti-political’ movements such as the Tea Party and Ukip – thanks, as luck wold have it, to their use of Facebook.  Zuckerberg launched his project by announcing, with what sounds almost like surprise, that books are “intellectually fulfilling” and “allow you too explore a topic . . . in a deeper way than most media today”.  For old school book lovers, the literary reference that springs most readily to mind is “no —-, Sherlock”.

Walton continues: You might also be tempted to imagine a world in which there had been 700 years of internet, before, in the Nineties, somebody invented books.  It would surely seem a miracle that, instead of trawling acres of semi-reliable information, you could have a guaranteed, portable and inexpensive source of knowledge from someone who knows both how to write and what they’re talking about.  But it appears that in his shock discovery of books potential, Zuckerberg is not alone.  A recent article in The Wall Street Journal praised a new campaign of “slow reading”, whose members meet once a week in a café, turn off their phones for a whole hour and read in silence.  Such quiet reading, the headline declared, can “benefit your brain” (again, not a revelation that would have startled Sherlock Holmes.)  While today’s bibliophiles might want to pounce on anything that smacks of good news, I can’t help wondering if using books purely as a means of self improvement – with elements of self-congratulation thrown in – misses the point of reading.

Walton goes on to make the point, via Nick Hornby, that people should read books for enjoyment and should not bother to finish the ones they don’t enjoy.  “Every time we pick up a book from a sense of duty, we’re reinforcing the notion that reading is something you should do, but television (or, presumably, surfing the internet) is something that you want to do.”  He makes the further point that Zuckerberg has fallen into the philistine idea that books should be relevant to your life.

I certainly agree with Walton, but I’m surprised that he doesn’t mention that Goodreads is owned by Facebook.  All the more reason for Zuckerberg to promote reading.  And I agree that it’s good for us to expand our intellectual horizons by reading something entirely new to us.  My wife recently finished reading Do No Harm, a book by neurosurgeon Henry Marsh about his life and practice.  She recommends it, and since I know nothing about the subject, it’s at the top of my To Read list.

The Outlook for Bookstores

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The news about the health of bookstores has been pretty downbeat during the last couple of years.  Between 2000 and 2007 about 1,000 independent booksellers closed.  I was therefore pleased to see an article in Independent, the journal of the Independent Book Publishers Association.  The article, by Linda Carlson, was pretty full of good news, but somewhat lacking in statistics.

The one statistic which was reported: according to an article published in Slate, the membership of the American Booksellers Association increased more than 20% from 1,651 in 2009 to 2,094 in 2014.  While 20% is a substantial increase, the average annual increase is about 5%.  Still, this is healthy growth.  To put this increase in perspective, Donna Paz Kaufman, an industry consultant is quoted as saying: “Fewer entrepreneurs are stepping forward to own independent bookstores, even at a time when many communities throughout the country long to replace a Borders or Barnes & Noble store that proved too large to be sustainable.”  She goes on to say that some would-be entrepreneurs have family members who are risk-averse and cannot justify investing the family’s wealth in “something that still seems iffy”.  My impression is that the apparent ‘growth’ in ABA membership is actually the renewal of lapsed membership, rather than new members. Nonetheless, this is a good sign.

So, what is driving the improvement in outlook for independent bookstores?  Shane Gotwalls, of Gotwalls Books in Macon, Georgia says, “Feedback from our customers tell us that they are tired of impersonal on-line shopping. . . . We hear more and more often that there’s nothing like the smell of a bookstore. . . . We try to give the best service possible, and we believe our customers keep returning because we are successful with this goal.”

WinterRiver Books in Oregon has kept its sales from slipping with a policy of discounting hardcover editions of best sellers by 20%.

Mirian Sontz, CEO of Powell’s bookstores in Portland, Oregon says that the store sold almost 10,000 copies, prepublication, of Edan Lepucki’s debut novel, California, after Hatchette authors Stephen Colbert and Sherman Alex recommended, on air, that it be purchased from Powell’s in response to the Amazon-Hachette conflict!  Sontz says, “The conversation about conscious on-line shopping continues, thanks to this increased awareness.”

Flintridge Bookstore & Coffeehouse in La Canada, California reports that they provide core literature for the La Canada school district.  “We work very closely with public school faculty and staff and we stock titles on required reading lists.”  Flintridge also emphasizes local history, geography, and culture of the San Gabriel Mountain foothills.

Espresso Book Machines are a drawing card for several bookstores which have them.  While only a fraction of the inquiries received by the bookstores result in orders, many writers who use the machines return again and again for additional print runs.

Other tactics for drawing people into bookstores include hosting story hours for kids and YA book clubs.  Some bookstores offer tickets to author events.  The ticket may require a book purchase or offer a discount.  Elliott Bay Books now hosts 500 events a year and says that “events keep us in mind as a cool place to visit . . . but having customers buy books in order to attend can backfire by discouraging people from attending.”

In summary, each successful indie bookstore seems to have its own special identity and offerings which appeal to local customers.  It offers personal service to frustrated on-line customers, and the touch, feel and smell of actual books!

Living the characters

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How does one, as an author, decide what a given character says or does?

For me, the answer is: I try to get inside the character’s skin.  What this means in practice is that I try to feel what the character is feeling at that particular moment, and I ask myself, ‘what is s/he thinking?’  While I don’t explicitly bring it to mind, I’m aware of the character’s background, his/her values, personality and ambitions.  This process is particularly necessary when a character is suddenly put in an unexpected or difficult position.

Fir example, in Efraim’s Eye, the principal character, Paul, is suddenly asked by Naomi, “Do you love me, Paul?”  By way of background, Paul and Naomi had become lovers two days previously.  She is a very pretty and sweet charity worker, a rootless, lonely, thirty-something.  Paul is a London-based widower in his fifties, a financial consultant who has a girlfriend his own age.  Naomi and Paul are not an obvious match, but Paul finds Naomi enchanting and Naomi sees Paul as a secure, reliable father figure, who, nonetheless, wakens her dormant sensuality.

The story continues:

 

Unprepared as he was for that question, Paul knew that there could be only one answer. “Yes, yes, of course I love you.”

Naomi’s head tilted, and her gaze fell to the table cloth. Uncertainly, she asked, “Why do you love me?”

Instinctively, Paul knew that his answer must not include the word ‘beautiful’ or one of its synonyms. He said, “You’re a very sweet idealist, Naomi. You are a woman with great talents as a linguist, as a musician, and in dealing with people. But for me, best of all, is your joie de vie. Life is a great, pleasing adventure for you, and it’s delightful to be with you.”

For some moments, Naomi gazed at him, apparently repeating his words in her mind. She asked, “So you think I’m a sweet, talented, adventurous woman?” She pronounced the word ‘woman’ awkwardly, as if it were a term unfamiliar to her.

He smiled. “For a four word summary, that will do.”

Paul knew the answer to the reciprocal question. She loved him as a daughter loves, and he had awakened her latent brilliance as a lover. But, for her part, she had wanted to know whether she, herself, was a person who could be loved.

 

Paul’s response, ‘Of course I love you’ leaves room for doubt about the depth of the feeling behind it, and in the days ahead, he begins to doubt the durability of the relationship.  His response to the question, ‘why do you love me, Paul?’ manages to avoid the artificiality of a ‘because you’re beautiful’ response.  He recognises that she has a hunger to be valued for more than her looks.  His answer, from his point of view, is both truthful and recognizes as strengths what she may have seen as weaknesses.

So this exchange between Paul and Naomi, while unexpected by the reader, helps to define these two characters, and begins to open a path to the future for each of them.

Amazon vs. Hachette

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Regular readers will know that I have been following the dispute between Hachette, the French-owned publishing house and Amazon.  The two companies have now signed a deal to end their long-running price dispute.

According to the Daily Telegraph: the two firms had disagreed about the price of ebooks which can be read on Amazon’s market-leading Kindle device.  Amazon believed most new ebooks should be $9.99, which many in the traditional publishing industry said was not financially sustainable.  It also wanted to restructure the way revenues were split between the publisher, author and  itself.  Hachette refused to back down on lowering prices.  The dispute gained public attention earlier this year when hundreds of authors supported Hachette.  They argued that  Amazon’s pricing tactics were damaging writers and high streets around the world. The online retailer responded by increasing shipping times on Hachette books, blocking pre-orders, and redirecting customers to other publishers.  In August a group of 900 writers paid for a full page advert in The New York Times criticising Amazon’s actions: “These sanctions have driven down Hachette’s authors’ sales on Amazon by at least 50%.  Amazon has other negotiating tools at its disposal; it does not need to inflict harm on some of the very authors who have helped it to become one of the largest retailers in the world.”

Under the agreement which has been reached between the two companies, Hachette will have responsibility for setting prices of its ebooks, and “will benefit from better terms when it delivers lower prices for readers,” according to a joint press release.

Hachette said: “This is great news for writers.  The agreement will benefit Hachette authors for years to come.”

David Naggar, vice president of Kindle, said, “We are pleased with this new agreement as it includes specific financial incentives for Hachette to deliver  lower prices, which we believe will be a great win for readers and authors alike.”

How can all three of the statements in quotation marks, above, be true at the same time?

The short answer is, I don’t know.  But I have a theory.  Suppose under the old deal at $9.99, Amazon got 40% and Hachette got 60%: $4 for Amazon and $6 for Hachette, and suppose that Hachette pays its authors a one third royalty from its revenue: $2 per copy.  And suppose, under the new deal, Hachette prices its ebooks at $15 per copy and gets 55% of the selling price, while Amazon gets 45%.  This would give Hachette income of $8.25 per copy, and the author would get $2.75 per copy: a better deal for all three parties assuming that the volume of the ebook is not price sensitive.  But, if for example, only half as many copies are sold at $15 as at $10, everybody is worse off.  This is where Amazon’s obsession comes in: the lower the price the more you sell!  I’ll bet that the deal is structured so that Hachette’s share of the sale increases as the price is lowered.  In this example, for each dollar reduction in price, Hachette would get one percent more of the selling price.

So:

Statement no. 1 is true: Hachette gets better terms as it lowers its price (not better revenue, but better terms)

Statement no. 2 is true: Hachette authors will benefit ($2.75 vs $2 assuming that the volume of sales are not particularly affected at the higher price)

Statement no. 3 is true: lower prices are a win for authors and readers alike (assuming lower prices mean greater sales volumes)

It seems to me that this dispute boils down to different views on the price elasticity of books.  Amazon believes that price is very elastic: the higher the price, the less you sell and the lower the price the more you sell.  Amazon apparently has some data which supports this theory.

Hachette believes that, within a certain price band, the price is inelastic: volume is largely unaffected by price.

My own view is that Hachette is probably right.  They have experience with their authors and their genres to be able to predict volume, and they have a pretty good idea of where the price band should be.  They will be quite sure that if they price a book at a third of its normal price band, it won’t sell four times as many.

Topics for Novels

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How do writers choose a topic to write about?  What factors influence the setting, the characters, the time frame, the key events?

I suspect that every author will have a slightly different answer to these questions.  In my case, there was a different set of criteria which influenced the topic for each of my six (so far) novels.  I often think it would be easier if I had a consistent topic and some repeat characters, as the late P D James had with her detective stories.  The problem for me is that I get restless with repetitive tasks.  I would make a very poor assembly line worker.  I changed my major in college twice – from architecture, to mathematics – before settling on physics.  As a naval officer, every day was different.  As a salesman of heavy electrical equipment, every sale was unique.  As a manager and as a management consultant, every situation one faces is different.

Starting with Fishing in Foreign Seas, I tried to stay within my experience: romance, Sicily, the north-eastern US, raising a family and the sale of heavy electrical equipment.  I added some sex and some intrigue for seasoning.  For me, this worked, but I wanted something grander, more important.

What could be more important than sin?  What could be grander than six life stories entwined?  That was the premise of Sin and Contrition.  With a chapter devoted to each sin, I found that each character developed uniquely, and that my imagination could add interesting – but credible – surprises.

Efraim’s Eye came about because of a charity assignment I had in Mexico, where we suspected the chief executive of the charity of being corrupt.  I felt that a corrupt charity was interesting, but probably not gripping.  But, what if the purpose of the charity’s corruption was the financing of a terrorist attack?  And what if there was an intense love story?

The feedback from readers of Efraim’s Eye was very good: it was an exciting thriller with believable characters.  I decided that I wanted to write another thriller; this time about the drugs trade, and I decided that Afghanistan, with its huge output of opium for heroin, and being in the public eye, was the setting.  But, I also needed an immediate destination for the heroin, as very little of it is consumed in Afghanistan.  Some research convinced me to make Iran the home of the bad guy and the immediate destination of the heroin in The Iranian Scorpion. 

Before I finished Scorpion, I started on a novel in the first person about a bright, self-conscious boy who hears unfamiliar voices, which, over time, he attributes to representatives of God and the devil.  I wanted to write a serious novel which, through the life of Henry, explored psychological, theological, and sociological issues around the choices we make in our lives – for better or worse.  I wrote three chapters of Sable Shadow and The Presence before setting it aside: I had lost my way and needed to take a break.  But with the completion of The Iranian Scorpion, I came back to Sable Shadow with new enthusiasm, and I completed it.

In the back of my mind was another novel, slightly similar to Sable Shadow, but an allegory, told in the first person, set largely in the Middle East, with Middle Eastern characters, and dealing with the search for meaning in life.  I’m working full tilt on it now, but before getting really started, I wrote Hidden Battlefields, another thriller, this one about a huge shipment of cocaine from Peru to the ‘Ndrangheta mafia in southern Italy. Four of the main characters from Scorpion are in Hidden Battlefields.  The theme of Battlefields is how major conflicts in our values and priorities can affect who we really are.

As I look back on the progression of novels, two trends stand out, both of which amount to increasing levels of challenge for me as a writer:

First, my craft as a writer is being challenged on all fronts: character development, thematic subtlety, language, credibility and interest.

Second, I have to do more and more research, to the point now where I spend more time on research than I do on writing.

 

Hidden Battlefields

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My sixth novel, Hidden Battlefields, has just been published.

A thriller tracking the movement of $250 million in cocaine from Peru, east of the Andes, down the Amazon, across the Atlantic and northwest Africa to southern Italy. Four of the main characters from The Iranian Scorpion star in Hidden Battlefields. Robert Dawson is the DEA agent who goes under cover as a Shining Path operative. David Dawson, a retired US Army general and Robert’s father, adds determined confusion. Mary Jo Mignot, the defence contractor with a top secret clearance, is David’s love interest. Or is she Robert’s? Kate Conway, the Pulitzer-Prize-winning journalist, is Robert’s love interest. Or is she David’s? New characters representing the Shining Path, Peruvian, Maoist terror organisation, and ‘Ndrangheta, the Italian crime syndicate are introduced.

The theme of the novel is conflicting personal priorities, and how they affect our identities.

Peace Cover Web

Creating a Cover Design

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Creating a cover design is a difficult process.

I always start with a cover concept in mind.  My latest novel is a thriller which has as its theme how conflicting priorities can change who we are: our identity.  One of the characters is a international, freelance journalist, who has found that long-term relationships don’t work very well when one is working in a country like Afghanistan.  She has therefore decided to focus on her career in journalism, and, in doing so, she has won a Pulitzer prize.  But, she is lonely and longs for a loving relationship – a relationship which will make her the person she wants to be.

Given this theme, I asked the cover designer to produce a graphic which included a transparent human head inside of which are toy soldiers engaged in combat.

Here is what they came up with initially:

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Not surprisingly, I didn’t like it at all.  My wife said it looked like the cover for some kind of a cult book.  I objected to the spirals; I was told that they are watermarks which will be removed when the head image is purchased.  I didn’t like the iridescent blue: that had to go.  The dozens of small images in the background just added confusion.  The soldiers (which one can barely see in this image) were too small and didn’t look as though they were fighting.  After some discussion, I sent the designer copies of the images below:

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I found these images on the internet, and the only problem was that they weren’t high resolution.  The designer worked on the images to sharpen them.

Then, rather than have a transparent, three-dimensional head, I opted for a simple, two-dimensional outline of a head.  I asked that the colour scheme be simplified: red, blue and black only.

Then we got into a lengthy back-and-forth about the fonts on the original cover, which I didn’t particularly like.  My wife and I were in Rome a couple of weeks ago, and at the check-out counter of a local supermarket, she spotted the cover of Paulo Coelho’s latest novel which appeared to have an embossed font.  Very stylish!  I sent a picture of the cover to the designer, but it turned out that if ‘Hidden Battlefields’ were to be in that font, it would have to be on two lines rather than one.  So we compromised on the font.

So, here, at last, is the cover:

Peace Cover Web

 The book itself should be available in a week to ten days.

About Blurb

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In this Monday’s Daily Telegraph there was an article ‘Book Minnow Opens New Chapter in Publishing’, written by Andrew Cave.  What particularly caught my eye was the graphic below.  (Sorry that the graphic isn’t very clear, but it wasn’t included in the online version of the Telegraph, so I had to scan it.)  You may be able to make out that the source of the graphic is ‘PwC’, which I assume means Price Waterhouse Coopers.  This chart looks rather suspicious to me for several reasons.  First of all the total volume in dollars remains pretty constant over the ten year period: $16 billion.  The total value should be increasing with inflation and with the number of readers, worldwide.  Secondly, the value of Ebooks & Print and Audio books will be equal in three year’s time; since Ebooks are less expensive than physical books, the implication is that Ebooks will be out-selling physical books by about 50% in volume terms.  If this is the case, it’s the first time I’ve heard of it.  And third, the individual plots are both pretty much straight lines.  While this may be true for physical book sales, the growth of Ebooks has been anything but linear.  Strangely, this graph was not referred to in the article itself.

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The article itself was about the self-publishing house, Blurb, founded by Eileen Gittens in San Francisco in 2006.   The company has a turnover of $90 million this year.  The article says that Blurb has published 3 million books.  Does Mr Cave mean 3 million copies of books?.  And it says that “a new title comes over the servers every 2.1 seconds”.  This would literally mean that Blurb is publishing nearly 15 million new titles every year.  I find this difficult to believe, given the turnover of $90 million.

But, let’s set the numbers aside.

Blurb is a software-based company which allows the author to choose Ebook or print copy formats.  The minimum order size for printed books is 750.  Blurb’s online platform gives the author tools to choose layouts.

Naturally, Gittens sees many advantages her company has over traditional publisher.  Not the least of these advantages is getting published at all.  Blurb’s price includes its mark-up.  “If the price of printing your book is £5 because you’re going to order a few thousand,” Gittens says, “and you’re going to sell that book for £25, we would literally send you £20 every time somebody buys a copy.”  (This must be if you happen to have one of the titles that Blurb has for sale on its website.)  Blurb also sells through Apple and Amazon.

I can imagine what my publisher (a co-op publisher) would say about Blurb.  “They don’t produce their books professionally.  They can look homemade, unedited, without concise layout or a professionally designed cover.  Besides, they offer no marketing help, which we offer at extra cost.”

Perhaps the most interesting point in this article is this: Gittins believes many people could one day have their own book, as well as their own Facebook page.  “It’s part of  your personal brand,” she says.  I think this is true.  Many people would like to leave a record of what they have achieved in life.  The only problem is: would anybody want to read it?

Amazon’s £270m Record Loss

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There was an article in the Daily Telegraph recently with the above title. It said:

“More than $15 bn was wiped off the value of Amazon last night, after the online retail giant reported the biggest loss in its history. The company increased sales by a fifth to £20.58 bn in the three months to October, but plunged $437 m (£273 m) into the red as it spent heavily on new projects. That figure is more than 10 times the $41 m loss Amazon reported in the same period a year earlier.

The business has been ploughing money into myriad new schemes as it battles to gobble up market share and tries to compete with rivals such as Apple that are increasingly treading on its turf. Jeff Bezos, Amazon’s chief executive and founder, has authorised the company to spend tens of millions of dollars developing drones and much more on new servers for its online data storage business.

He has also led a spending spree on film and television rights, so that Amazon can compete with the like of Netflix and Hulu, and has reportedly been selling gadgets such as its Kindle Fire e-reader as a loss, in order to build up its base of loyal users.

‘We’ve been for several years now, in an investment mode because of the opportunity in front of us,’ Thomas Szkutak, chief financial officer said.

Shares in the company fell more than 11 pc in after-hours trading in New York, to $278.62, their lowest point in over a year.”

 

As those of you who have read by blog will know, I have mixed feelings about Amazon. When there is something I need for the house or a book I want to buy, I will invariably turn to Amazon for service and price. But, at the same time, I think that Amazon has done a lot a damage to authors and to bookstores.

But, if I set my personal feelings aside, and think about the above announcement with my ex-corporate executive’s hat on, my impression is that Amazon is headed for disaster.

No one has ever built a giant, diversified company on market share alone. The key words in that statement are: giant, diversified and market share alone.

If one thinks of giant, diversified companies which are successful, there is General Electric (which I know reasonably well as I used to compete against them). They are an enormously successful, profit-driven company. Their businesses are mostly ranked among the top three in market share, but they are all profitable. They are all managed by top-flight executives who know their respective businesses very well. They are paid and motivated to increase earnings per share (profit) and the value of GE’s stock.

I think that Amazon could have been quite successful if it had confined its activities to books. It could have sustained a top market share in this sector and worked to make it profitable. But now, it is trying to enter a lot of other businesses and trying to get the top market share, using price as the weapon. This is a doomed strategy. Why? Three reasons:

  1. Price is not a sustainable weapon. Somebody else will always find a way to do it cheaper, if that’s what the customer wants. Meanwhile, the business is bleeding money.
  2. Focus. Executives can pay good attention to only so many things. The more things an executive has to watch, the higher the likelihood that one of those things will go wrong. The secret of diversification is to serve one market. In GE’s case it is the industrial market. What do online data storage, books and drones have in common? Since 1997. When Amazon was first floated, the company has bought about 60 businesses.
  3. Experience. Jeff Immelt has many years’ experience managing huge industrial businesses. Jeff Bezos has no general management experience before he founded Amazon. He worked in computer science, international trade, finance, and internet enabled businesses, but I could find no evidence he had profit responsibility at a high level before Amazon. Information on the rest of the executive team is apparently available only on the proxy report to shareholders. How’s that for transparency?

What do I think will happen?

Well, if Amazon continues to experience losses of this magnitude, shareholders will revolt, and the attitude of Wall Street will turn hostile. As a result, several possibilities emerge:

  • There is shake-up of the executive team (except Bezos)
  • Subsidiaries will be sold to raise cash and to narrow the focus
  • More emphasis will be placed on profit over sales