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It’s been logical to do it in a domestic market to become a market leader but it’s illogical to do it in a new market?
by HatchedLake721 8y ago
It’s been logical to do it in a domestic market to become a market leader but it’s illogical to do it in a new market?
- jlarocco 8y agoI think there's something to the OP's point. Amazon's infrastructure roll out paid off in the United States because there was little competition. They rushed out infrastructure and cornered the online shopping and delivery market. Walmart and the other big stores had an entirely different business model and their warehouses and infrastructure took time to adjust and catch up, with Amazon still in the lead. In China, the local competitors already have a significant head start on their infrastructure, and Amazon would be playing catch up in a relatively unfriendly market. It could take them forever to recoup the investment, if they ever did. Unfortunately, they can't compete without that infrastructure in place, so what else can they do but leave?