Are you selling razors or razor blades?

“Amazon Clobbers Grocers With Whole Foods Salvo,” The Wall Street Journal, August 25, 2017 A1.  Amazon drops prices at Whole Foods after acquisition.

Does Amazon see an opportunity in groceries or in the information about people who buy groceries? How much of the $13.7 billion acquisition price is attributable to information Whole Foods had?  Or information that will be generated there?  How will Amazon account for its purchase?

Is Amazon backing in to a Walmart-like business?  How cheaply can you sell something if your get the information equation right?

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Filed under Analytics, Information, Value

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