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Strategy: good customer support, huge scale, low margins. Good support wins loyalty, helps debugging the system to eliminate systemic problems, and helps again
by DenisM 17y ago
Strategy: good customer support, huge scale, low margins.
Good support wins loyalty, helps debugging the system to eliminate systemic problems, and helps against Google (which is really bad at customer service). Huge scale drives down the cost and allows reusing knowledge from user to user, thus each user suffers less while Amazon learns. Low margins keep high-margin competitors away (Microsoft, IBM) and make users happy.
- jimbokun 17y agoLow margins making this a good fit for Amazon was really a light bulb going off for me. Microsoft, IBM, and even Google hate low margins, but it is inherent to Amazon's other businesses and built into their DNA. Microsoft, specifically, knows that this space is important, but they can't get their heart into it because they know the low margins will eventually have an impact on their other high margin businesses.
- deleted 17y ago[deleted]