Tuesday, August 20, 2013

Bricks and mortar may break the ardor

For Amazon.com, hope its competitors (notably Bed, Bath and Beyond and Best Buy), according the the Wall Street Journal;
The price competition is another sign of the multi-front battle between Amazon and the giants of American retail. Some, like Best BuyBBY +9.01%, have introduced price match guarantees promising customers to meet any Amazon price for items in their stores. Others, including Wal-Mart, are putting an increasing focus on their online operations, and using their networks of physical stores as distributed delivery points.
Don't forget Mom and Pop!
It’s not just physical retailers putting Amazon in their sights — online competitors also seem focused on matching the company’s low prices. Today online retailer Overstock announced it would match all Amazon prices on books, in a move coming just a month after the company said it would undercut Amazon by 10% in the book market — a discount Amazon quickly matched.
“Last month we started a book pricing war with Amazon,” said Patrick Byrne, Overstock.’s chairman, in a statement announcing the price matching. “We’re hoping to continue that battle, in a way that lessens any harm to the mom-and-pop booksellers we consider our comrades in arms.” 
Imagine if this power could be harnessed in health care markets.

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