Amazon and the benefits of low prices

I have been meaning to write a blurb about Amazon ever since I saw a great article on the benefits of Amazon's low margin strategy a few months ago. But a recent article in the Wall Street Journal about huge price cuts on Amazon's top-of-the-line tablet has finally galvanized me into action. Here are my thoughts.

Let's lead in with what Eugene Wei, a former Amazon manager, had to say in November of last year:

Attacking the market with a low margin strategy has other benefits, though, ones ...


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