2 ms·
I agree, I see I was wrong since store vs manufacturer is quite a different relationship than manufacturer vs manufacturer. I haven't thought that well so pleas
by franciscop 8y ago
I agree, I see I was wrong since store vs manufacturer is quite a different relationship than manufacturer vs manufacturer. I haven't thought that well so please ignore those confusing bits.
> Further, Store A is notorious for low wages, and the health costs its workers incur in the physical nature of the job are socialized losses borne by the broader state. Store B may be "inefficient", but it pays its workers a better wage, spends in its local economy etc.
This is a larger issue that IMHO should be solved independently, and I think the EU is doing quite well there compared to other parts of the world (I'm from Spain working in Japan now and I've heard way too many horror stories around here).
> How do you achieve that by allowing the better funded player to sell at a cost that Store B can't match?
Even if Amazon is better funded, they still need to make money per-sale (with few exceptions) so the prices won't be disproportionately different. And you can achieve that with differentiation in many ways, from the sales channels to the support, localization, etc. And that is the whole point, if Amazon innovates and everyone else is protected so they can stay behind then there would be no progress at all. They should be allowed to offer better prices if their processes allow for it and not be forced to sell more expensive because another company is very wasteful.