Celebration of Scholars
The Everything Store: An Analysis of Amazon’s Business Strategy and its Impact on Free Market Competition
Name:
Rachael Felton
Major: Accounting and Marketing
Hometown: Aurora, IL
Faculty Sponsor: Colleen OBrien
Other Sponsors:
Type of research: Senior thesis
Abstract
Amazon.com has emerged as a market leader in almost every industry. From retailing to entertainment production Amazon is everywhere and its reach is continuously expanding. Consumers love the convenience, investors love the growth, and suppliers love the sales. Although Amazon has made shopping more efficient, its business model and activities threaten the existing structure of free market competition. Its ruthless approach to business includes exploitation of its suppliers’ sales data, creating direct-to-consumer distribution channels, and predatory pricing, all funded by loyal investors who love the prospect of future payout (despite subpar financial performance). The implementation of these tactics are creating an environment for Amazon to become the sole distributor of products across the globe. The purpose of this thesis is to bring awareness to the dangers of Amazon’s business strategy as it threatens to eradicate competition. Various news sources, scholarly articles, law journals, documentaries, and financial statements were utilized in analyzing Amazon’s strategy and its potential impact on the free market. In conclusion, this thesis will communicate detailed information about the flaws in current antitrust legislation and provide suggestions for revisions, discuss the possibility of tax reform, and will study the free market’s ability to self-correct in order to limit Amazon’s power and influence.Submit date: March 11, 2018, 10:35 a.m.