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Re:SpaceX Is Now One of the World’s Most Valuable Privately ... by nabla9 on Friday July 28, 2017 @05:24AM (#14873020)
What you describe is exactly how you come to dominate retail business and become monopoly power online.

Amazon's reference point is Wal-Mart. They are in ever expanding price cutting small margin business.

Another good comparison in Microsoft in 80's and 90's. MS dominated over IBM, Apple and others several decades with sup-par product everybody hated by attacking and destroying potential competitors, not by improving products.

Bezos knows what he is doing.

Re:SpaceX Is Now One of the World’s Most Valuable Privately ... by snarfy on Friday July 28, 2017 @05:57AM (#14873135)
> They are in ever expanding price cutting small margin business.

If you sink all of your profits into expansion, then on the books you made zero profit. If you made zero profit, you pay zero taxes. This is a common tactic with farmers. They use this year's returns to buy next year's supplies. If amazon stopped growing and suddenly reaped their profits, there would be a big tax bill to go with it.

Re:SpaceX Is Now One of the World’s Most Valuable Privately ... by sidlls on Friday July 28, 2017 @08:47AM (#14873818)
There's a middle ground: don't grow as much, and pay some taxes. Not saying it's optimal (for any party, or on any axis), but it's not like there's just this binary choice of "growth consumes all profit" and "don't grow at all."
Re:SpaceX Is Now One of the World’s Most Valuable Privately ... by samfisher83 on Saturday July 29, 2017 @11:41AM (#14881704)
This isn't how accounting works. You can't just buy a warehouse and expense it in year one. You have to depreciate it overtime. You can look at their FCF its about 10 billion. Their market is 50x of that. For comparison walmart is ~20 billion and they are worth half of Amazon.
Re:SpaceX Is Now One of the World’s Most Valuable Privately ... by gozur88 on Friday July 28, 2017 @02:06PM (#14876240)
At some point that will happen. Companies can't experience exponential growth indefinitely.
Re:SpaceX Is Now One of the World’s Most Valuable Privately ... by adventured on Friday July 28, 2017 @12:02PM (#14875236)
That doesn't align with the actual history at all. One of the extremely well known, defining characteristics of Microsoft in the 1980s and 1990s, was releasing a weak product that they then improved substantially over several versions. Your premise is they didn't improve products as a means to conquer, when that's exactly how Windows took its market share after a horrible initial release that flopped: it got a lot better; ditto for plenty of other examples such as IE vs Netscape.

It applies to at least: MSDOS, Windows, Office and most of its products, Internet Explorer, SQL Server

In fact it was so well known that's how things worked, it was a saying that they only finally got things right by version three.

Re:SpaceX Is Now One of the World’s Most Valuable Privately ... by walshemj on Friday July 28, 2017 @06:56AM (#14873317)
Do you think NT4 was a worse product that netware ?
Re:SpaceX Is Now One of the World’s Most Valuable Privately ... by nabla9 on Friday July 28, 2017 @07:54AM (#14873554)
You remember only the end.

MS-NET, LAN Manager and MS/IBM joint effort with OS/2 LAN Server were all inferior to Netware. MS battled decades against Novell with inferior products and shady market practices eating their profits. Finally Novell was taken down and crumbled when networking became a core system component in PC operating systems.

Throwing money against to superior product from smaller competitor until you can eat their lunch is proven tactic.

Re:SpaceX Is Now One of the World’s Most Valuable Privately ... by gozur88 on Friday July 28, 2017 @02:08PM (#14876254)
So what you're saying is you can displace an entrenched competitor by putting in enough money to end up with a superior product?

That seems... reasonable.

Re:SpaceX Is Now One of the World’s Most Valuable Privately ... by nabla9 on Friday July 28, 2017 @02:59PM (#14876616)
Not at all and you know it.
Re:SpaceX Is Now One of the World’s Most Valuable Privately ... by gozur88 on Friday July 28, 2017 @06:18PM (#14878055)
No, I don't know it. What do you mean?