Citation
1997 Letter to Shareholders
TL;DR
Explicit prioritization of growth over profitability
Bezos's 1997 shareholder letter is the clearest articulation of Pacific Salmon strategy in business history. The explicit statement that Amazon would prioritize 'long-term market leadership considerations rather than short-term profitability' and 'make decisions that may be misunderstood' laid out the allocation philosophy that drove 6 years of intentional losses. This letter demonstrates that allocation choices can be communicated clearly and that Pacific Salmon strategy requires explicit commitment rather than accidental execution.
Key Findings from Bezos (1997)
- Explicit prioritization of growth over profitability
- Willingness to be 'misunderstood' by short-term focused analysts
- Long-term market leadership as primary objective
- Foundation for 1997-2000 Pacific Salmon allocation (80% growth, 0% profitability)