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Walmart’s price war in online book market<br /><ul><li>In 2009 Walmart marks down the prices of 10 bestsellers to 10$
When Amazon matched, Walmart went to 9$
Amazon matched again, Walmart went to 8.99$
Amazon is not able to match. Though Target joins the price war and sets 8.99$ as well</li></li></ul><li>Walmart’s final an...
If traditionally wholesale book are 50% off the cover price, this price war marked down prices to 60% or more
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Walmart vs Amazon price war [Prisoner's Dilemma]

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Price wars example on Walmart vs Amazon business case.

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Walmart vs Amazon price war [Prisoner's Dilemma]

  1. 1.
  2. 2. Walmart’s price war in online book market<br /><ul><li>In 2009 Walmart marks down the prices of 10 bestsellers to 10$
  3. 3. When Amazon matched, Walmart went to 9$
  4. 4. Amazon matched again, Walmart went to 8.99$
  5. 5. Amazon is not able to match. Though Target joins the price war and sets 8.99$ as well</li></li></ul><li>Walmart’s final answer<br /><ul><li>In response to Target Walmart marks down prices to 8.98$
  6. 6. If traditionally wholesale book are 50% off the cover price, this price war marked down prices to 60% or more
  7. 7. More books Walmart, Amazon & Target sold, more they lost</li></ul>8.98$<br />
  8. 8. Walmart’s Incentive<br />
  9. 9. Gains vs Losses<br />
  10. 10. Thank you.<br />Source: http://www.newyorker.com/talk/financial/2009/11/09/091109ta_talk_surowiecki<br />

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