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Amazon's Pricing Strategy Makes Life Miserable for the Competition

Essay by   •  December 10, 2015  •  Essay  •  348 Words (2 Pages)  •  526 Views

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Pricing of products

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Amazon's Pricing Strategy Makes Life Miserable For The Competition

“Amazon” threatening its competitors by changes prices. Huge change seem in this charismas when amazon offer lowering pricing of 80 million products when already it competitors announced that they will not undersold products, when Best Buy, Toys “R” Us, Walmart and are main competitors of amazon. Althoug“Walmart” managers are empowered to meet all competitive prices, in order to compete successfully, (as Walmart offers range of electronic hardware appliance with strategy to touch them and then purchase them online). While “Best Buy” using “meet all competitors prices” strategy and Toy “R” Us, also trying to meet competitors internet prices in order to grab market share and not to lose sales over time.

Amazon intends to continue gaining market share in this very competitive environment   Black Friday deals including smartphones, diamond rings and Wrangler jeans, are already visible on Amazon’s website. Amazon is now considered a leader in pricing adjustment, grabbing sales by motivating buyers. Internet Retailer Magazine reported in mid-2013 that Amazon changed prices on about 40 million products many times during a single day since they want to provide customers with the lowest prices and best value across their vast selection. Amazon changes prices frequently as in last year on black Friday week Amazon changes 2840 price changes just for several very competitive, relatively low margins, departments including electronics, toys and housewares. On the other hand, 922, 336 and 64 are price changes occur in Walmart, Best Buy and Toy “R” Us respectively. The following week, which included a snowstorm, Amazon lead with 3,474 price changes, Walmart had 850, Best Buy 485, and Toys “R”Us 340. Actually those retailers capture sales and market share by selling huge stock of their products by cutting their prices (Forbes.com, 2015).

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