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I don't understand your point, unless your point is that Amazon has the largest market share because they are the best at what they do. If that's what you're trying to say, then I agree. If that's not what you're trying to say, then please explain it better.
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My point is that you can't say that a market is competitive by naming a list of competitors. You have to look at market share. Sure, Lotus Smart Suite is still out there but no one can think of it as a serious rival to MS Office any more.
As to effect of Amazon's market domination, see post #35 above . It has little to do with how "good" Amazon is for consumers, it ain't that good for publishers and authors.