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How can you be sure that major players in e-commerce like Amazon won't lead the whole market towards monopoly in future?
How can you be sure that major players in e-commerce like Amazon won't lead the whole market towards monopoly in future?
Expert Solution
Amazon is a major player in the electronic commerce or e-commerce market and has a large amount of the market share. In spite of this, it won't lead the whole market towards a monopoly in the future.
Amazon faces a lot of competition from other e-commerce firms like Flipkart, Wallmart and so on. Although the online sales of Amazon are nearly 5 to 6 times more than Wallmart, it does not ensure that the Amazon has or will have monopoly powers. In China, an e-commerce company Alibaba took over Amazon recently. The market keeps on changing because new industries or companies keep on coming up. A future monopoly of the market cannot be predicted as any other new entrant might replace Amazon or there might be a case where its present competitors could overpower it.
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