- For some time I've known the key to Amazon's current and future success will be the growth trajectory of Amazon Prime. The attack from Wal-Mart confirms it has been making a lot of headway, and presumably is not only taking enough business away from the struggling Wal-Mart to cause the Bentonville company to take this type of action, but shows it is considered a significant future threat as well.
- On the other hand, the quick response by Amazon founder and CEO Jeff Bezos to the attack on its flagship business also confirms he can't allow Wal-Mart to take away market share. If that were to happen, I don't see Amazon having the ability to become profitable on a consistent basis. That means this is going to be an entertaining but expensive battle now and in the future.
I'm having a hard time thinking of two companies I'd rather see engaged in a pyrrhic race-to-the-bottom.