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Amazon Web Services invests aggressively to expand its datacentre capacity as th...
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Amazon Web Services invests aggressively to expand its datacentre capacity as the demand for cloud computing services grows. This investment can likely be explained by the fact that…
(I) Having a larger installed capacity than competitors enables Amazon to operate with a cost advantage, increasing its profitability.
(II) Having a large capacity in relation to the size of the market ensures Amazon is one of the few active players in the long run, increasing its profitability.
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