Quote:
Originally Posted by rhadin
But with the ability to use the revenue generated by, for example, selling TVs in pursuit of book deals, Amazon can afford slimmer margins and to invest significantly more capital in trying to monopolize the book indistry.
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Funny, BEST BUY thinks it is all that ebook money that lets Amazon discount HDTVs 40% and offer free shipping and superior customer service.
http://www.ritholtz.com/blog/2011/03...amzn-showroom/
http://hdguru.com/searching-for-an-h...h-amazon/4920/
When I see a competitor whine about Amazon's pricing, I translate the gripe to: "Our bloated overhead means we'd lose money if we tried to match them."
Of note, BEST BUY is now quietly offering Amazon pricing for online sales and looking to "right-size" their storefronts and product mix.
http://hdguru.com/check-it-out-a-bet...578/#more-5578
Maybe they decided it's more productive to compete than to whine. Many small regional TV stores do in fact price match Amazon and live to tell of it because it is better to make a low margin sale (with high margin add-ons like cables and tv stands) than to serve as Amazon's showroom.
Amazon is a tough competitor but they have not repealed the laws of economics; what they have done, others can aspire to. They just have to work as hard and as smart as Amazon. Surely that is not impossible.