![]() ![]() To lure more customers to stay with Amazon, it launched “Prime Membership Subscription” for a flat annual fee of $79.It offered free two day delivery and e book renting along with music and video streaming at such a nominal price. The aim is to increase the shareholders long term value over short term gain. It has everything to do with the business model of Amazon. How is that possible, considering the fact that it dominates half of all online sales in more than five different categories (home improvement tool, men’s athletic, skin care, batteries, golf, cleaning supplies and kitchen and dining). Amazon has a revenue of around $72.4 billion but the profit of only $3 billion. ![]() It is about the business model and vision of Jeff Bezos to dominate the e- commerce market. There are a lot of debates about the legality of “Predatory Pricing by Amazon” but that is not what this article is about. ![]() Amazon is laying in wait, in other words, aiming for monopoly. ![]()
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