A note from Daniel

Jeff Bezos’s strategy for seizing market share: minimize overhead, slash prices, eat rivals' profits. Be lean, be mean. Be relentless. The cost structures of the physical retailers that were Amazons competitors at the time prevented them from matching Amazons price cuts. Brick-and-mortar expenses, like rent, utilities, and shopkeepers' wages, set hard limits to incumbents' pricing. With no physical stores to support, Amazon could keep prices low. So Amazon pressed its advantage, undercut many of its competitors, and put them out of business.

Daniel Read Write Own, page 112 · March 6, 2024 Save to shelf
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