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Excessive Competition and Innovation: Amazon's Case Analysis

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America is characterized with excessive competition and innovation within its capital markets. This competition within industry groups provides a foundation for this innovation can occur and flourish. As firms become more profitable, competitors enter the market in attempt to steal market share and retain profits for themselves. This gives rise to competition between rival firms which results in new products and services for society. All parties theoretically show incur economic benefit. Companies make an adequate return on investment in the form of profits while society gains access to new and innovative products. Such is the nature of capitalism which is the backbone of American enterprise. The technology industry is no different in this regard. Competition has given rise to new and innovative solutions to many consumer needs. In fact, the technology sector has provided products society never deemed necessary until they were created (i.e. Apple's IPod). Amazon has been at the forefront of this innovation and his entered markets previously dominated by older more established companies. My aim with this document is to provide insight as to why these behaviors on the part of Amazon are warranted. To begin, Amazon is competition with Google and Microsoft on the consumer services segment of the internet. Amazon, much like Google and Microsoft's "Bing," is consumer oriented. In order for any of these three service providers to flourish, consumers must continually use their

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