Truth? or is it a myth? Original Story by Prashant Sachdev With the entry of e-commerce channel in India, the concept of burning cash to increase market share came into picture. Over the period of time, more industries such as telecom have indulged into this practice. Let us consider two of the most impactful cash burning events in the recent history: Big Billion Day Sale I remember the day when Flipkart had first launched their Big Billion Day Sale in 2014. Many products such as smartphones, accessories etc. were sold at Rs. 1! At that time, most people thought that flipkart was foolish to sell products at such huge losses. With such negative EBITDA in almost all categories, how could a company survive, even in the short term! The only explanation for doing so was to entice customers in the short term and habituate them into using the then new service. They did succeed in doing the above. However, over the period of time, new players such as Amazon, Snapdeal etc. were born in India. N
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