Question

In: Economics

1. The following statement is contained in the article: Some analysts have criticized Amazon's aggressive pricing,...

1. The following statement is contained in the article: Some analysts have criticized Amazon's aggressive pricing, arguing that it unnecessarily eats into the bottom line. Amazon, they said, should abandon the approach because the company has no real competition. A little reflection shows that this statement is off-target. Provide an argument demonstrating why it is incorrect.

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Expert Solution

Ans: Amazon is one of the most best-seller company in the world through online the amazon company itself is saying that it is very expensive for shipping the products.The shipping charge for the products has been increased around 12%that means around 52 million $.Anyway the owner of amazon online company has said that it is one of the very effective equipment in marketing.

The selling has been increased up to 28%from the last year. The last year it was almost it was around 1.44 billion $, but this year it was around 3.9 billion $ according to the company data.All parts of the amazon company has been grown from a year back.Music,books,videos sales has been grown up to 13%, electronics and home appliances sales has been grown up to 21%.

Amazon is not one of the largest member in the competition game, but they are highly working for continuing the delusion of rock bottom costs. Now the amazon is in the most fire freshly over their difficult negotiation strategy with issuing house hachette. But now also amazon is one of the biggest product sellers in the world and they don't want to be most responsible and good-natured to the people with whom they are doing business, mainly when it comes to discussion of the good cost.

Amazon are saying that the power and proud are always coming from their market domination.We can say that amazon is having only very less competition with other wholesalers and won independently among the other companies who are doing their operations online.

They are one of the biggest wholesalers, due to that it is having a variety type of competition. They sell all the materials through online and they have millions and millions of products available on the online.

The amazon always give the offers for their products at the rock bottom cost, so for other competitors it will very difficult to stay with amazon.Amazon has one of the largest reputation for being a local area for buying products and their sales page itself is having advertisements and promotions, so it don't need any need of other advertisement companies and it always gives the best experience for dealing.

Thanks...


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