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If I were amazon, I would've prepared to do a price cut when Google announces one. Then when they announce it, just push the button. Why give up margin earlier
by nilsbunger 13y ago
If I were amazon, I would've prepared to do a price cut when Google announces one. Then when they announce it, just push the button. Why give up margin earlier than necessary? *
Of course waiting to do a price cut till their competitor does leaves a bad taste in some customers' mouths. But I bet they think they're far enough ahead that it doesn't matter. Would Netflix and similar big AWS customers really leave AWS over something like this?
* This strategy even has a name: "follow the follower". Very common strategy in sailing.
- evan_ 13y agoif it had been a random price-drop announcement then this might be applicable, but everyone was pretty sure that Amazon was going to announce a price drop at re:Invent.