Quote:
Originally Posted by HappyMartin
Amazon drive out traditional booksellers by lowering prices and once they are the only guys around they they raise prices and we all suffer. For about a week that is until someone sees that the high prices mean high profits and they then jump in and undercut Amazon.
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It would be almost impossible for a new startup to compete against Amazon. The cost to build a competitive business would be beyond nearly all businesses and entrepreneurs, largely because of the infrastructure that Amazon has built. Even if it could be done, it would take years to successfully build a competitive business. During that building period, Amazon would strike back and bankrupt the newly emerging company, return to its high prices while preparing a battle plan for the next startup that seeks to challenge it.
To blithely say that someone will come in and battle Amazon once Amazon has a monopoly is to ignore the realities of business creation. The only way any competitor would have a chance at survival would be if the Department of Justice brought Amazon to its knees as it did with Microsoft and IBM.