Tuesday, November 24, 2009
price war between Walmart and Amazon
Just as I predicted in my previous post, the price war between Walmart and Amazon has spread from books to everything else. It is great for consumers but not so good for the companies. Walmart can afford to lose money on their online business for a couple years to build it up but Amazon can not. Online is its only business. In a year, Amazon stock price will collapse just like RIMM. Online shoppers are very price conscious. Competition will kill the margin.
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