Question

Chapter 13 addresses the impact of monopolies. They present a value and detriment to society (depending on when and where you look at them) but the US is seeing a great number of mergers/acquisitions that could really limit competition and drive up price and lower quality for a number of consumers. Amazon is largely considered a monopoly of online retail companies (50% of all online purchases are from Amazon!) but argues that any store that has an online portal or presence is a competitor. However it has not stopped them from buying companies like pillpack (mail order pharmacies) and WholeFoods (grocery) thus making Amazon a larger part of our lives whether we like it or not.

Do you think Amazon should be limited in number and types of businesses it acquires? Why or why not?

Answer 1

Yes, Amazon has been a kind of monopoly in the market of online selling.

Now the answer to the question that should Amazon be limited to the type of businesses and limited in number, So their is no definite answer to it can be a yes as well as a no according to different angles.

In the view of a small consumer that is about 59% of the Amazon's customer their should not be any change in the online market sector as when a new firm establishes it takes a lot of time to the trust of a customer. The frequent buyers from amazon must be having a view of their should be more competition but Amazon must not be limited to any extent.

On the research basis it can be said that competition increases the quality of products, gives effective pricing option and opens up the innovative side of market. So Yes their can be a reverse option like subsidising the infant online selling industries and giving them a growth opportunity which can further increase competitors for amazon.

Why not to limit or restrict the business of a particular company?

These types of limitation can only be imposed by the governments or some other governing bodies. these bodies are made and regulated for the whole sole growth world business economy. So for a particular cause they cannot put limitations over the growth of any single industry. Yes they can partially react through making laws over business regulations but direct hit is not possible.