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Competition is always there, but companies need to give interesting solutions to customers in order to win market and survive. Everything is about business.
People like Amazon because it's awesome customer support. If you add that to a great product like Kindle 3, the result is people choosing Kindle instead of Nook or Kobo, even Sony.
I love B&N stores and spending time there reading or with my wife, but Kindle eink reader is better than 1st gen Nook. Moreover, there are less "horror stories" about problems returning a defective Kindle than a similar customer returning a defective Nook.
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