Flipkart To Buy LetsBuy.com

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mehrotra.akash said:
I wonder what Flipkart is getting from the deal though?

If they eliminate letsbuy and hike prices, new players will come in

If they dont hike prices, instead of buying letsbuy, they could spend a fraction of the money on promotions and get a large no. of customers from letsbuy
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its not about capturing the market share only.. its about eliminating the competition so that they dont have to set their prices under any kind of pressure.. they can give just about a competitive price, and people wont have anything to compare from to say whether their prices are higher or lower.. ..

creating a monopoly in any industry, will always be more profitable rather than continuously spending on marketing, corporate wars etc.. and plus, after buying letsbuy, they will even have the use of its entire infrastructure which is already in place.. they dont need to apply lot of brains over setting up new infrastructure..

theres a reason big corporate houses always buy away their competition if they have the financial capacity instead of getting in marketing and customer acquisition wars..
 
puneetritehere said:
its not about capturing the market share only.. its about eliminating the competition so that they dont have to set their prices under any kind of pressure.. they can give just about a competitive price, and people wont have anything to compare from to say whether their prices are higher or lower.. ..

creating a monopoly in any industry, will always be more profitable rather than continuously spending on marketing, corporate wars etc.. and plus, after buying letsbuy, they will even have the use of its entire infrastructure which is already in place.. they dont need to apply lot of brains over setting up new infrastructure..

theres a reason big corporate houses always buy away their competition if they have the financial capacity instead of getting in marketing and customer acquisition wars..
Click to expand...

Eliminating competitors can only be a short term success. Is it ever practical to eliminate competition ? Atleast i don't think so.
 
rad0 said:
Eliminating competitors can only be a short term success. Is it ever practical to eliminate competition ? Atleast i don't think so.
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with such big corporate houses it is.. flipkart is selling all kind of end consumer goods.. its not that they are manufacturing or trading in a single type of commodity. a monopoly will always be better for them.. with no competition, the kind of turnover they will generate is unimaginable.
 
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