Quote:
Originally Posted by rhadin
I wonder if this is a battle that Amazon can win. Wal-Mart (and now Target) can underwrite these books and sell them for a penny and over the long-term because of their financial status. Amazon I think would be hard-pressed to compete on price against Wal-Mart over the long-term; it isn't in the same financial league. OTOH, Bezos is willing to lose money (but are his shareholders still willing to do so?), whereas it is pretty clear that Wal-Mart is focused on profits. This will be an interesting battle.
I wonder what B&N will do. It can't ignore the fight but it can't win the fight either. Borders is already on life support; this could be the plug puller for it.
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Yes, Wal-Mart and Target have deeper pockets. The question will be how deep they want to dig.
I see this stuff as loss-leaders to attract traffic to the stores where folks will buy other things as well. I note this is happening in the leadup to the holiday season, and I'm sure Wal-Mart, Target, et al are thinking Christmas season. I can't see them trying to kill off Amazon long term.
For similar reasons, I don't see this killing B&N, who I think can live through this battle for market share. Borders may be another matter.
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Dennis