And if they do that, how long will they make a profit, before a competitor with more aggressive marketing and infrastructure takes over their market share?
Well, no one said it was easy to stay on top. The point is that once they have built their brand and have diversified their product lines to a sufficient extent, they can dial back a lot of these expenditures. It's extremely expensive to launch new product lines.
I mean, you make it sound so easy... just use "more aggressive marketing and infrastructure to take over the market share". In practice, it's not that easy. Ask competitors of Wal-Mart (or Microsoft, for that matter).
By the way, it's not as if Amazon is hiding any of this strategy. Read their financial reports.
Re:No way... Amazon has already won (Score:2)
And if they do that, how long will they make a profit, before a competitor with more aggressive marketing and infrastructure takes over their market share?
Well, no one said it was easy to stay on top. The point is that once they have built their brand and have diversified their product lines to a sufficient extent, they can dial back a lot of these expenditures. It's extremely expensive to launch new product lines.
I mean, you make it sound so easy ... just use "more aggressive marketing and infrastructure to take over the market share". In practice, it's not that easy. Ask competitors of Wal-Mart (or Microsoft, for that matter).
By the way, it's not as if Amazon is hiding any of this strategy. Read their financial reports.
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