While on one hand I was more than happy to get it in three days and a little cheaper, I also realized that this won't last forever. Amazon's capital has gotta run out at some point in time and the cheap/fast service will stop there.
While on one hand I was more than happy to get it in three days and a little cheaper, I also realized that this won't last forever. Amazon's capital has gotta run out at some point in time and the cheap/fast service will stop there.
They're famous for being willing to push competitors into the ground on margins, at whatever loss is necessary in the relative near-term. It's very likely they're going to seek to squeeze Flipkart on margins until they're struggling to operate due to a very high cash burn (with venture capitalists eventually unwilling to keep pouring red ink down the drain).
I'd bet that Amazon views India as a truly massive future market. They really can't crack China properly, and likely never will. India however, they can crack. They'll pour vast resources into it to build out a dominant position. If you told Amazon they can own a dominant position in India for the next 30 years by spending $10 billion today, they'd write that check immediately.
They're the world's largest retailer by market valuation, and carry $14.4 billion in cash (with the ability to raise whatever sum they need at any time they need it). Further, AWS has become a cash generating monster, that will fund any adventures Amazon wants to undertake over at least the next decade.
No chance they run out of capital.
EDIT: Also Indians still share in village so even if amazon says they will give only 10 Hamam soaps but at 10% less or 10 Horlicks with 15% less, people will pool and buy.
"do not care"
That's a solid point :-) and largely true, though a generalization. Changing some at least among the younger generation in cities, though.