GBA 220W Lecture Notes - Lecture 6: Jeff Bezos, Amazon Marketplace, Whole Food
7 May 2020
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Jeffbezos saw the growthof internetusersfast so he decided to sell something online keyfeaturesof books. D low startup costs shipperble not experiencedgoods cpeoplearelikelycomforablebuyingwithouttouching small huge selection ccompetitiveadvantage buyonlineinsteadof instore booksaretheproductcategorywithmostnumber. Notperishable ofdifferentproducts being online toallow customers tosearchbooks that are potentially interested. Amazon is differentiating their products bybundlinginformation with their physical products. Not thathardto create a website sellingbooks create website a list. Howhard to take businessfromamazon ofbooks process credit cards. D wehave to offer a lowerprice very hard. Amazon has a lower cost c economicscale of inventory. In airline industry priceis everything but booksare cheap whatis amazon"s weakness. Wh s m z s weal n s. Individualizedpricing chargingdifferent customers differentprices at the same point in time. Prosof individualized pricing but changing price over time to increase profits chargemorefrompeoplewhovalue more suchof. D customers will findout and willbe unhappy consumersurplus deadweight lost. Should amazon do individualized pricing couldthey do it has many data to do it.
